Vale do Sao Bartolomeu Transmissora de Energia

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In July 2013, the consortium Vale do Sao Bartolomeu, a partnership of the Brazilian companies Fundo de Investimento em Participacoes Caixa Milao – Grupo JBF (51%), Furnas Centrais Eletricas S.A. (39%) and CELG Geracao e Transmissao S.A. (10%), was awarded the contract to build and operate the 161.5-km transmission line Luziania - Brasilia leste, Samambaia - Brasilia Sul - Brasília geral, located at the Federal District and the state of Goias (500 kV in capacity). Consorcio Vale do Sao Bartolomeu was the only bidder to take part in the contest. The bidding criteria set by the regulatory agency ANEEL was the lowest required annual revenue. Consorcio Vale do Sao Bartolomeu presented the only offer of a total value of US$ 13.4 million (BRL 31.596 million), 11,63% below the ceiling set by the regulatory agency. The contract was signed in October 2013, and the sponsors created the company Vale do Sao Bartolomeu Transmissora de Energia to lead the project during the 30-year contract period. The sponsor committed to invest US$ 87 million (BRL 300 million) in the project. Construction works commenced in April 2016 and were in its final stages by June 2017. Financing information was not available. 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.