Aug 29, 2012

The board of directors of the BNDES approved R$ 1.05 billion in financing for Norte Brasil Transmissora de Energia S/A. The funds will be allocated to implement the collector transmission line in Porto Velho (state of Rondônia) - Araraquara 2 (state of São Paulo), approximately 2,300 km long, which integrates the Rio Madeira transmission system and which will be operational in the first half of 2013. The BNDES’ support also includes social investments in the region.

The project is part of the Growth Acceleration Program (PAC) and is a priority for the country, as it will increase security in the electricity supply to the Brazilian Interconnected System and contribute to lowering tariffs. Along the line, which will cross five states and over 80 cities, plans include the construction of approximately 5,000 transmission towers, which will require 45,000 tons of steel and 70 tons of aluminum.

During works, Norte Brasil estimates that it will be created approximately 5,000 direct jobs and 15,000 indirect jobs. The project will cost R$ 1.98 billion, of which 52.9% will be financed by the BNDES, and it may even receive funding of R$ 200 million (or 10.1% of total investment) by issuing infrastructure bonds, which will contribute to the development of the long-term corporate debt market in Brazil for project financing.

About SPE – The Norte Brasil is a Special Purpose Entity (SPE) established by Abengoa S/A, Eletronorte and Eletrosul, created with the aim of exploring the concession of the transmission service of electricity generated by the hydroelectric complex on the Madeira River.

The company will present the BNDES with a socioeconomic diagnosis of the region that will be affected by the project and a proposal for a set of social efforts and initiatives. Based on this, the Bank will finance investments in efforts that foster local development, such as improvements in urban and rural infrastructure, health, education, security, recreation and capacity-building of the workforce.