Transmissora Matogrossense de Energia

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In November 2009, the Brazilian company Consorcio Jauru-Cuiaba, was awarded in a competitive bidding process the contract to build and operate a 348-km transmission line and one substations located in the state of Mato Grosso. Consorcio Jauru-Cuiaba was established as a joint venture of the state-owned Eletronorte - Centrais Eletricas do Norte (49%); the Brazilian company Alupar Investimentos S/A (31%), formerly known as Alusa; the Brazilian company Bimetal Indústria Metalúrgica Ltda. (15%); and the Colombian company ISA's subsidiary CTEEP-Companhia deTransmissao de Energia Eletrica Paulista (5%). Besides Consorcio Jauru-Cuiaba, other companies took part in the contest: COBRA INSTALACIONES Y SERVICIOS S.A. (Spain); CYMI HOLDING S.A. (Spain); ORTENG EQUIPAMENTOS E SISTEMAS LTDA (Brazil); and ISOLUX INGENIERIA S.A. (Spain). The bidding criteria set by the regulatory agency ANEEL was the lowest required annual revenue. Consorcio Jauru-Cuiba presented the lowest offer, a total value of US$ 13.9 million (BRL 27.52 million), 30 % below the ceiling set by the regulatory agency. The contract was signed in May 2009, and the sponsors created the company Transmissora Matogrossense de Energia S.A. Environmental clearance was awarded in July 2010, and the construction works started right away. Commercial operations commenced in November 2011. The sponsor committed to invest US$ 125.3 million (BRL 247.50 million) in the electric complex. In February 2012, the sponsors were granted a US$ 44.2 million ( BRL 87.30 million) loan from state-owned bank BNDES. The remaining cost was set to be financed with the sponsors' internal resources. The company was granted the right to take part in the government program called Regime Especial de Incentivos para o Desenvolvimento da Infra-Estrutura (Reidi). Companies selected to take part in this program were given tax cuts in the acquisition of capital equipment and construction material acquired both in the domestic and international markets (this incentive represented a cost reduction of about 9.25%). In addition, the company was allowed to use accelerated depreciation methods of accounting for construction expenditures.