Triangulo Mineiro Transmissora

Active

In December 2012, Consorcio Triangulo Mineiro, a partnership of the Brazilian pension fund FIP Caixa Milao (JBS company, 51%) and the state-owned company Furnas Centrais Eletricas S.A (49%), was awarded the contract to build and operate the 297-km transmission line Marimbondo II-Assis, located at the states of Sao Paulo and Minas Gerais (500 kV in capacity). Besides Consorcio Triangulo Mineiro, only another bidder took part in the contest: the Spanish company Abengoa. The bidding criteria set by the regulatory agency ANEEL was the lowest required annual revenue. Consorcio Triangulo Mineiro presented the lowest offer, a total value of US$ 14.9 million (BRL 29,01 million), 18,89% below the ceiling set by the regulatory agency. The concession contract was signed in August 2013, and the sponsors created the special purpose company Triangulo Mineiro Transmissora S.A. to lead the project during the 30-year contract period. The sponsor committed to invest US$ 108.2 million (BRL 361 million) in the project, financed with the sponsor's equity. Construction works commenced in April 2015 and were concluded by October 2016. 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.