Uirapuru Transmission Line

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In May 2006, BNDES, the Brazilian development bank approved a US $32.4 million loan for the consortium Uirapuru Transmissora de Energia S.A. to build, maintain and operate a new 525 kv transmission line for 30 years. The 121.5 km line was designed to run from the Ivaipora substation to the Londrina substation in Parana state and cross ten municipalities. The Brazilian operator of electrical systems, ONS, indicated that the Uirapuru transmission line would increase the power sharing ability of the south with the southeast and prevent power rationing situations in the future. Uirapuru Transmissora de Energia SA was a specific purpose company (SPE) comprised of: Eletrosul Centrais Elétricas SA (49%), Control y Montajes Industriales Cymi SA (41%) and Santa Rita Comércio e Engenharia Ltda (10%). Electrosul Centrais Electricas is a subsidiary of state-controlled Electrobras; while Cymi was a subsidiary of the ACS Group, a Spanish construction company and concessionaire. Santa Rita Comércio e Engenharia Ltda was a Brazilian company with expertise in the implementation of electrical installation projects. The contract was awarded by the ministry of mines and energy in February 2005, and approved by ANEEL, the electricity regulator, in 2006. The project reached financial closure in May 2006 with a BNDES funded loan that covered 69.92% of the investment costs. The funds of US $32.4 million were distributed through Banco Regional de Desenvolvimento do Extremo Sul (BRDE). Total investment requirements were estimated at US $46.3 million. The line was slated to become operational in September 2006. The power plant began to operate in July 2006. In April 2007,Santa Rita sold its 10% shares to Cymi Holding SA. BNDES stated that it funded 69.92% of total investments in facilities at US $32.4 million. 69.92%(total investments in facilities)= US $32.4 million. Therefore,(total investments in facilities)= US $46.3 million.