Serra da Mesa Transmissora de Energia

active

In November 2005, Isolux SA, was awarded in a competitive bidding process organized by the regulatory agency ANEEL the contract to build and operate a 675 km transmission line and two substations located in the states of Minas Gerais, Goias and Distrito Federal (Serra da Mesa 2 – Luziania, Luziania – Samanbaia, Luziania – Paracatu 4 – Emborcacao). Besides Isolux SA, eight other companies took part in the contest: COBRA INSTALACIONES Y SERVICIOS S.A., CONSORCIO LUZIANIA, TRANSMISSORA SUDESTE NORDESTE S.A. - TSN, ABENGOA S.A., NEOENERGIA, CONSÓRCIO BANDEIRANTE, ISA - INTERCONEXION ELECTRICA S.A. E.S.P., and ELECNOR S.A. The bidding criteria set by ANEEL was the lowest required annual revenue. Isolux SA presented the lowest offer, a total value of US$ 27.5 million (BRL 66.9 million), 42.6% below the ceiling set by the regulatory agency. The contract was signed in May 2006, and the sponsors created the company Serra da Mesa Transmissora de Energia to lead the project during the 30-year contract period. The sponsor committed to invest US$ 229.5 million (BRL 420 million) in the transmission line. The environmental licence was granted in January 2007 and the operation of the transmission line started in April 2008. In 2008, MIGA issued a guarantee of € 20.9 million ($33 million equivalent) to Cobra Instalaciones y Servicios S.A. of Spain to cover its equity investment in the Serra da Mesa Transmissora de Energia project in Brazil. The coverage was agreed for a period of up to 15 years against the risks of transfer restriction and breach of contract. In March 2010, the shareholding structure was modified when a Chinese state – owned company, SGID, acquired Serra Paracatu Transmissora de Energia and other transmission projects from Plena Transmissora de Energia (Isolux, 33,3%; Elecnor, 33,3%; Cobra Instalaciones y Servicios, 33,3%), which held 100% of the shares of the project company at the time the transaction took place. SGID invested US$ 1.72 billion (BRL 3.1 billion) in the acquisition of Plena Transmissora de Energia.