India's Sterlite, China's State Grid win Brazil power licenses

India's Sterlite, China's State Grid win Brazil power licenses

By Luciano Costa

SAO PAULO (Reuters) - India's Sterlite, China's State Grid, and Colombia's Isa clinched licenses to build power transmission lines in Brazil in a government auction on Thursday that is expected to draw a total of 6 billion reais ($1.55 billion) in investment.

Some 47 companies and consortia registered to present bids at the auction at Sao Paulo's stock exchange B3, which led to a competitive round.

Under auction rules, the companies that offered the biggest discounts in the tariffs would win. Brazil's electricity regulator, Aneel, registered a 55 percent fall in average tariffs the companies will be allowed to charge.

Sterlite , which debuted in Brazil last year, clinched six projects that will require around 3.6 billion reais to build, according to Aneel.

Cteep, a unit of Colombia's Isa, won two projects, with projected investments of 880 million reais, while CPFL, a subsidiary of China's State Grid, was granted a project that is slated to cost about 102 million reais.

Electricity heavyweights such as Portugal's EDP and Spain's Iberdrola, bidding through their joint venture Neoenergia, left empty-handed, amid the hot competition.

The licenses include a 30-year contract to operate the lines, with pre-defined annual revenues coming from the tariffs to be charged for the service.

($1 = 3.8617 reais)

(Writing by Marcelo Teixeira and Alexandra Alper; Editing by Leslie Adler)

This story has not been edited by Firstpost staff and is generated by auto-feed.


Updated Date: Jun 29, 2018 07:05 AM

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