Brazil transmission tender: 8 things you need to know

Wednesday, October 19, 2016

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1) What: The second stage of the 13/2015 tender will offer investors 24 lots to build and operate 6,800km high tension power lines and 8.2GVA of substation capacity. Operating concessions will be for 30 years.

2) When: The auction will be held on October 28 at the BM&F BOVESPA headquarters in São Paulo, starting at 11.30am.

3) Where: The lots are located in the states of Bahia, Ceará, Goiás, Espírito Santo, Minas Gerais, Pará, Paraíba, Pernambuco, Piauí and Rio Grande do Norte. See a full list of the projects here.

4) How much: Investment in the projects is expected to total 12.58bn reais (US$3.97bn). Maximum annual revenue from operations has been raised by 13% to 2.6bn reais (US$800mn).

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5) Deadlines: Projects must be completed within 42 to 60 months after contracts are signed.

6) Financing: Brazil's national development bank BNDES will finance 50-70% of the cost of the works.

7) Last time: Developers committed to 10 of the 24 lots on offer at the first auction in April as the country's political and economic turmoil hit investor morale.

8) BNamericas says: This auction promises to attract more interest than the first phase of the tender in April. While BNDES' participation remains at 70% (including 50% at a subsidized rate), a 13% jump in maximum revenue will ensure more handsome returns for investors.

ALSO READ: Brazil outlines US$13bn grid expansion