Transenergia Sao Paulo

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In May 2009, Consorcio Transenergia, an association of the Brazilian companies J. Malucelli (25.5%), Delta (25.5%) and state-owned FURNAS (49%), was awarded in a competitive bidding process the contract to build and operate the Itatiba substation (500 kV) located in the state of Sao Paulo. Besides Consorcio Transenergia, eight other companies took part in the contest: CTEEP (Brazil), the Cymi Holdings (Spanish), Orteng Equipamentos (Brazil), Copel (Brazil), ETEP (Brazil), Alupar (Spanish), Abengoa (Spanish) and Elecnor (Spanish). The bidding criteria set by the regulatory agency ANEEL was the lowest required annual revenue. Consorcio Transenergia presented the lowest offer, a value of US$ 4.1 million (BRL 8.2 million), 21.31% below the ceiling set by the regulatory agency. The contract was signed in November 2009, and the sponsors created the company Transenergia Sao Paulo to lead the project during the 30-year contract period. In 2011, the ownership structure of the project company changed when J. Malucelli acquired Delta’s shares. The sponsor committed to invest US$ 46 million (BRL 75 million) in the transmission line. Financial closure was achieved in August 2011, when the sponsor was granted a US$ 23.7 million (BRL 38.7 million) loan from BNDES. The remaining cost was set to be financed with the sponsors’ internal resources. The construction works were expected to be concluded by 2012. Commercial operations commenced in August 2012. In June 2014, BNDES granted an additional loan of US$ 8 million (BRL 18.8 million).