Jan 29, 2014

• New rules will be applied in the auction for the Transmission System at the Belo Monte power plant, to be held on February 7

The board of directors at the Brazilian Development Bank (BNDES) approved financing conditions for electrical energy transmission projects. The new conditions will be applicable in Auction Nº. 011/2013, to be held on February 7, for the Belo Monte Power Plant Transmission System.

The auction is for the procurement of two substations (Lot A) and one transmission line stretching 2,000 kilometers (Lot B), that will go through the states of Pará (where the Belo Monte plant is located), Tocantins, Goiás and Minas Gerais. Together, lots A and B total approximately R$ 5 billion and will have the transmission capacity of approximately 4,000 MW.

Among the valid financial conditions in the support for project winners are:

• Financial costs: long-term interest rates (TJLP), plus 1% p.a. for BNDES’ basic spread
• Credit Risk rates up to 2.87% p.a, according the customer rating
• 14-year amortization term
• Debt service coverage index of 1.2 and;
• Possibilities for the project manager to convert the debt amortization instrument of the Constant Amortization System (SAC) into the Price system, when the beneficiary of the BNDES’ credit issues infrastructure debentures as a means to co-financing investments.

More details are available here.