Transmission auction in April will have four lots, two with ICGs

Fonte: ANEEL

Today (3/20), the Brazilian Electricity Regulatory Agency's board approved the edict for Transmission Auction no. 03/2012, which will be held on 4/20 at BMF&BOVESPA head offices in São Paulo.Four lots will be auctioned with six transmission lines, totaling 428 kilometers (km), and six substations with 2,650 Mega-volt-amperes (MVA) of power, as well as two transmission installations of exclusive interest for shared connection generation plants (ICG).The undertakings will demand R$ 522.6 million in investments, generating 3,089 direct jobs.

The deadline for job completion will range between 20 and 22 months.The maximum Permitted Annual Revenue* projected by ANEEL for all lots is R$ 58.8 million, a sum that should drop with the competition in the auction.

The transmission installations will be constructed in five Brazilian states:Pernambuco, Rio Grande do Norte, Ceará, Bahia and Minas Gerais.See the description of the lots h ere.

The documents that refer to the auction, such as the edict and the public utility concession contract, will be available on the Agency’s website, in the Space for the Entrepreneur section in Transmission Edicts, or here.

Auction systematics – The financial proposal with the PAR sum for each lot will be presented by the tenderer in a sealed envelope, up to two days before the auction at BM&FBOVESPA, together with the guarantees that do not have digital certifications or added in the form of escrow accounts.The opening will be conducted during a public session, observing the respective lot.All enrolled and qualified tenderers disputing the lot will deliver a proposal.If the difference between the smallest tender and the other proposals exceed 5%, the lowest tender wins.If the difference is smaller than or equal to 5%, or if there is a tie between the lowest tenders, there will be an open auction in which that auctioneer can set minimum values to be offered between one bid and another.The tenderer who offers the lowest value will win.In the event no tenderer makes an open auction bid, the winner will be the one who presented the lowest sealed bid.If there is a tie between the values in the sealed bids, without presentation of open auction bids, the winner will be determined by a drawing held by the session director.

Guarantees – In order to participate in the tender, the tenderers will include a guarantee worth 1% of the investment sum estimated by ANEEL, which may be extended for 60 days.The Guarantee of Faithful Compliance is presented only by auction winners, replacing the prior guarantee.It corresponds to 5% of investment value and should be paid up to two workdays before signing of the contract.

Timetable – As per the edict’s timetable, the Special Public Tender Commission (CEL) will release an Instructions Manual for those interested on 3/28. The final deadline for requesting explanations on the edict will be 4/2. The Special Public Tender Commission (CEL) will have until 4/12 to provide the answers to the requests.The next day, 4/13, will be the last day for requesting visits to the existing installations, which should be held by 4/16. Registrations will be made online, on the ANEEL website, from 8am on 4/17 to 2pm on 4/18. The proposed guarantee will be added online as well, from 9am on 4/17 to 4pm on 4/18. The guarantees will be delivered on 4/18 at 4pm at BM&FBOVESPA for those without digital certification, and at ANEEL, for those included as escrow accounts.On that same date, the financial proposals will be delivered, by 4pm, as per the Instructions Manual.On 4/19, the CEL will announce the tenderers participating in the auction.

After the auction, the winning tenderers shall deliver the documents for the qualification phase from March 23-27 at the BM&FBovespa.By 5/4, ANEEL’s Special Public Tender Commission (CEL) will disclose the qualification result.Ratification of the result and awarding of the concession are projected for 5/15. The deadline for delivery of the timetable and the installation construction budget is 5/28, the date on which the documents of the Specific Proposal Society (SPE) or the transmission utility, required for approval and for the concession contract, shall be delivered.Two workdays prior to the date to be set for signing the concession contract, the business owners should deliver the guarantee of faithful compliance.The contracts shall be signed within 14 days after the convocation date.

Changes – Besides the change in the deadline for delivering financial proposals, shown above, there is no longer the possibility of refusing to present a proposal.The auction edict also establishes the exclusion of the Reserve Revenue, a 5% reduction in the sum that used to be applied as a reducer of maximum PAR in the event a single tenderer exists for a specific lot.With regard to the proposal’s guarantee, the extension period went from 30 to 60 days, and the determination that there would be no return of the proposal guarantee executed by determination of ANEEL was included in the edict text.In relation to the documents provided at Public Hearing 011/2012, the names of the following substations have changed, without detriment to their technical characteristics:from Ceará Mirim to Ceará Mirim II; from Mossoró III to Mossoró IV; from Pindaí to Pindaí II; from Igaporã to Igaporã II and from Igaporã II to Igaporã III. (BT/DB)

*Permitted annual income – Annual income, resulting from the winning tender, to which the concessionaire has the right for providing the public utility of energy transmission after startup of commercial operations of the transmission installations.ANEEL Normative Resolution no. 230, of September 12, 2006 (Official Gazette, of Sept. 13, 2006, section 1, pg. 56)