Brazil power transmission tender attracts nearly $3 B in investments
Brazil, Brasilia: Brazil’s first power transmission auction in 2022 has attracted $2.9 B (15.3 B reals) in investments.
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Brazil, Brasilia: Brazil’s first power transmission auction in 2022 has attracted $2.9 B (15.3 B reals) in investments.
On 28 July, 5,425 km of lines and 6,180 MVA of transformation capacity were contracted, with an average discount of 46 % on the ceiling price.
Of the total, $2.31 B (12.3 B reals) will be for large-scale transmission, capable of bringing PV solar power from Minas Gerais (lots 1 to 3).
Ten winning consortiums and companies will be responsible for construction and maintenance of the projects in the states of Acre, Amapá, Amazonas, Bahia, Espírito Santo, Mato Grosso, Mato Grosso do Sul, Minas Gerais, Pará, Rondônia, Santa Catarina, São Paulo and Sergipe. The works must be concluded in 42-60 months.
Among the winners are large players such as Brookfield Brasil Asset Management Investimentos, CTEEP, Eletronorte, Energisa, Engie, Neoenergia, Sterlite Brazil Participações and Taesa.
Franceli Jodas, a partner at consultancy KPMG, was surprised by the high average discount obtained, considering the macroeconomic situation and the cost of capital of the projects, “which today is a challenge for implementation,” she disclosed.
Jodas said the sector is attractive and will continue to be so, mainly because of its traditional regulatory stability, with no record of contracts being breached, as well as the stability of revenues.
“Another positive point is that the companies that won the lots are consolidated groups in Brazil, with financial health capable of meeting the commitments undertaken,” she added.
Source: bnamericas