Serra do Japi Transmission Line

active

In May 2009, the Brazilian company CTEEP was awarded in a competitive bidding process the contract to build and operate two substations in the state of Sao Paulo. Besides CTEEP, eight companies took part in the contest, though only two participated in the final stage of the process, besides CTEEP: Consorcio Transenergia (the Brazilian company J.Malucelli; state-owned Furnas; the Brazilian company Delta); and the Brazilian company Empresa Amazonense de Transmissao de Energia S.A. ENERGIA S.A. The bidding criteria set by the regulatory agency ANEEL was the lowest required annual revenue. CTEEP presented the lowest offer, a value of US$ 10.9 million (BRL 21.8 million), 11.02% below the ceiling set by the regulatory agency. The contract was signed in November 2009, and the sponsors created the company Serra do Japi S.A. to lead the project during the 30-year contract period. The sponsor committed to invest US$ 90 million (BRL 180 million) in the transmission line. The construction works commenced in 2010. In July 2011, the sponsor was granted a US$ 20 million (BRL 40 million) loan from the state-owned bank Banco do Brasil. In October 2011, the state-owned bank BNDES granted a US$ 57.2 million (BRL 93.4 million) loan to the project. The remaining cost was set to be financed with the sponsors’ internal resources. Construction works were expected to be concluded by November 2011. Operations commenced in September 2012.