Taquarucu - Sumare Transmission Line

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ETEO was awarded the concession contract to build and operate a 509-Km transmission line that runs from Taquarucu and Sumare in the state of Sao Paulo. ETEO is a specific purpose enterprise, created to build and operate the line. ANEEL, the Brazilian regulatory agency for the electricity sector, awarded ETEO the concession for the line on May 12, 2000. At the time of the signature of the concession contract, ETEO was a joint–venture of Multiservice, a subsidiary of the American company Earth Tech, Inc., and AMP do Brasil. The concession contract will last 30 years, renewable for an additional 30-year period. The project involves an investment of US$ 113.4 million, financed with the sponsors own resources. Construction works started in May 2000. Siemens has signed an EPC contract with ETEO. The line started operations in October 2001. In January 2001, Multiservice changed its name to Earth Tech do Brasil and acquired the corporate control of ETEO: Tyco Group Sarl acquired 77.74% of the total capital and Earth Tech do Brasil acquired 22.26%. In October 2001, ETEO signed an operation and management contract with Companhia de Transmissao de Energia Eletrica Paulista (CTEEP), a state-owned utility, regarding the Taquarucu-Sumare transmission line for 5 years. The concession contract executed by ANEEL and ETEO was not modified (ETEO remains the owner of the line and the company responsible for the transmission services). The line was expected to improve the offer of electricity for the area of Campinas and Greater Sao Paulo. Before this line, the energy produced by Porto Primavera (1,200MW) and Taquarucu (500MW) hydroelectric plants were being channeled to another distribution trunk (Jupia-Bauru), before being sent to Campinas and Sao Paulo. The line was supposed to increase by 10% transmission capacity from the generators to these centers of consumption. In May 2008, Terna Participacoes acquired Eteo from Tyco International. In November 2009, Cemig bought a stake in Terna Participacoes. The name of the company changed from Terna Participacoes to Transmissora Alianca de Energia Eletrica S.A. (Taesa). The shareholders of Taesa are: FIP Coliseu (33.6%), Cemig (32,3%) and small local investors (34.1%).