Transmissao Itumbiara Marimbondo Ltda.

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MIGA issued a guarantee of $17.94 million to Elecnor S.A. of Spain for its loan guarantee of $18.9 million in support of Cachoeira Paulista Transmissora de Energia Ltda. of Brazil. The guarantee is for a period of three years and provides coverage against the risks of breach of contract, and currency transfer restriction and inconvertibility. The project involves the construction of an $80 million power transmission line in the State of São Paulo which will increase transmission capacity as well as improve the reli-ability of electricity supply. MIGA's participation in the project is consistent with the World Bank's objectives of supporting Brazil's power sector. The project is considered crucial for the country's economic development because it bolsters transmission capacity which is considered a priority in Brazil's electricity development program for 1999-2008. A total of 1,200 workers will be hired during the construction phase and about 30 people during the operation of the project enterprise. The project will also pay taxes amounting to an estimated $64 million during the life of the concession, and in accordance with Brazilian law, roughly $400,000 of the cost of the infrastructure project will be set aside for the establishment or improvement of conservation areas, parks, and protected areas.

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