New transmission developments of the basic network will be auctioned by the National Energy Agency (ANEEL) on 09/03, at 10am, at the headquarters of the BM&FBOVEPA S.A. in São Paulo. The announcement of the event (Auction no. 006/2010) was approved today (08/03) by the Board of the Agency during the 29^th Ordinary Public Meeting.

Three lots of projects located in the states of Rio Grande do Norte, Bahia and Ceara will be auctioned, with expected investments of about BRL 300 million and generation of 2,150 direct jobs. The operation of the five transmission lines with total length of 516 kilometers (km), four substations and is scheduled for 2012. The sum of the maximum Annual Income Allowed (RAP)* of three lots is BRL 39.175 million. Check the list of facilities auctioned in each batch here.

The projects are expected in the Transmission Expansion Program prepared by the Energy Research Company (EPE) and were evaluated for their technical and economic feasibility as the best alternative to insertion of the Central Generating Wind Power qualified in the Backup Energy Auction No. 003/2009, held on December 14^th, 2009.

The announcement of the Auction no. 006/2010 will be published in the Official Journal of the Union (DOU) this Wednesday (08/04), when it will be made available on the ANEEL website (www.aneel.gov.br ) in Entrepreneur’s Space, on the link 2010 Transmission Announcements.

National or international private rights corporations may participate in the auction, either alone or working in a consortium, and the Investment Funds in Participations (FIP), also alone or intercropped with other funds or legal entities under private law. The online registration can be made from 8AM on 08/31 to 2PM on 09/01. 

Proposal Guarantee - The contribution of online Proposal Guarantee in the amount of 1% of investment value estimated by ANEEL can be made from 9AM on 08/31 to 4PM on 09/01. Guarantees that do not have digital certificate must be delivered to BM&FBOVESPA and those with contribution under consideration must be submitted to ANEEL. The two procedures should be done on 09/01 until 4PM. On Thursday, 09/02, the Special Bidding Commission (CEL) of the auction will release on the Internet (at the same address of the Announcement) the list of proposers eligible to participate in the auction. 

Guarantee of Loyal Compliance – The Guarantee of Loyal Compliance is contributed by the winners of the auction, replacing the previous guarantee. It corresponds to 5% of investment value and should be contributed within two business days before signing the concession contract. 

Systematic of the Auction - The financial proposal with the value of the Annual Income Allowed (RAP) for each lot must be submitted by the participant in a sealed envelope. If the difference between the lowest bid and other bids exceed 5%, the lowest bidder wins the tender. If the difference is less than or equal to 5% or if there is a tie among the lowest bids, the auction proceeds, with successive bids made with the speakerphone. The director of the session of the auction may set minimum values to be provided between a bid and another. The tenderer submitting the lowest value wins. In the case no bidder bids on speakerphone, the winner will be who has submitted the lowest amount per envelope. If there is a tie in values reported by envelope without submitting bids on speakerphone, the winner will be determined by a raffle promoted by the director of the session. 

Schedule – According to the schedule of the auction, also available at the same website, the clarification about the instruction manual and procedures of the auction, available as of Friday (08/06), may be obtained at a meeting to be held on 08/11, from 3PM to 5PM, at ANEEL’s headquarters in Brasilia (DF).  The deadline for clarification about the announcement is 08/19.  Interested parties may visit existing facilities related to new developments, according to rules of the announcement.  The deadline to request the visits ends on 08/27. The online registration can be made from 8AM of 08/31 to 2PM of 09/01. The auction is scheduled for 09/03, at 10AM, at BM&FBOVESPA, in São Paulo. Because the auction is carried out by reversed phase, the documents relating to the qualification of winning tenderers must be delivered from 9AM to 2PM from 09/10, with publication of the results in 09/16. The approval of the outcome of the auction and the adjudication of the concession are scheduled for 09/28. The delivery of the schedule and budget for construction of enterprises, as well as documents of Special Purpose Company (SPC) or the concessionaire of transmission, should be made until 35 days after the announcement of the result of the adjudication in the Official Journey of the Union. The granting is scheduled for 30 days after that. The signing of the contract will be disclosed and the deposit of the faithful compliance guarantee should happen two working days before signing the contract.