Elecnor wins bid for a new electricity concession in Brazil, with a forecast investment of Euros 273 million
Elecnor already held stakes in 11 transmission concessions in the country
Elecnor will hold a 51% stake in the project, while the local concern Copel will own 49%
Construction of the transmission line will fall exclusively to Elecnor
At the 2013 year end, investment assets managed by Elecnor in Brazil were valued at Euros 1,604 million, including the order book
Madrid, 12 May 2014. The Brazilian electricity authority, Agencia Nacional de Energía Eléctrica (ANEEL) has awarded Elecnor, one of the benchmark private operators in the national electricity transmission market, a transmission concession in San Paulo as part of the Companhia Paranaense de Energia (Copel) consortium. Elecnor holds a 51% stake in the concessionaire, Cantareira, while Copel owns the remaining 49%.
The concession, located in the Minas Gerais and São Paulo states, comprises a 328 km, 500 kV double-circuit transmission line. The forecast investment of BRL 830 million (Euros 273 million) will be funded through both capital contributions and long-term, no recourse debt. Elecnor is entrusted with completing all construction works for the project within 42 months, for a value of BRL 783 million (Euros 257 million).
Once the project comes onstream, annual revenue is forecast to reach BRL 77 million (Euros 25 million), subject to increases each year due to inflation of the Brazilian currency.
The project forms part of the Brazilian government's growth acceleration programme, aimed at boosting the quality and reliability of the country's electricity supply.
Presence in Brazil
The new investment will help shore up Elecnor's growth in concession markets and in large infrastructure building projects, in line with the company's strategic objectives. At the same time, Elecnor will lock in its foothold in the Brazilian transmission market, in which it already participates in 11 concessions (9,340 MVA and 3,734 km of lines). Elecnor is also gaining a greater presence in the Brazilian renewables sector, with wind power of 564 MW in operation and development in Rio Grande do Sul.
In the past three years, Elecnor has moved investments in Brazil totalling Euros 740 million. At the 2013 year end, investment assets managed by the company nationwide were valued at Euros 1,604 million, including the order book Of this amount, Euros 890 million relate to the electricity transmission lines sector, while the remaining Euros 714 million are in the wind energy business.