Vimal Kejriwal, MD & CEO, KEC International Ltd, speaks to T&D India about his company’s power transmission contracts in Brazil.
Tell us about your operations in Brazil’s power transmission sector.
We have completed seven projects in Brazil, with a significant number of projects currently under execution. Some of our key projects executed include transmission line projects in Serra Azul, Salto Apiacás and Delfina for Enel Green Power and a project in Barreiras for São Pedro Transmissora. We are now executing a 500kV project in Sapeaçú-Poções for Tropicália Transmissora, which is one of the large EPC orders secured in recent months.
KEC International has expanded its strong global EPC expertise in the Americas through its wholly-owned subsidiary SAE Towers, which operates Brazil and Mexico. SAE Towers is one of the world’s largest producers of steel lattice towers for high-voltage power transmission, with an annual production capacity of over 100,000 tonnes.
In Brazil, SAE Towers has been an active player in executing transmission line projects. Its manufacturing unit, spread across 35 acres, is the largest tower and hardware plant in Brazil and produces 65,000 tonnes of lattice transmission towers annually. Adjacent to this plant is our full-scale tower testing station, the largest in the Americas.
A large number of transmission lines in Brazil have been built through SAE’s services and products. We have a large order book and significant L1 positions in the Brazilian EPC market, which promises to add a significant chunk to our revenues next year onwards.
What are the main execution challenges that EPC contractors face in Brazil?
Brazil is a very large country with varied topography. This creates a different set of challenges as we move from one region within the country to another. States like Minas Gerais, where SAE Towers is based, possess a mountainous topography, hence executing foundations and erecting towersbecomes an uphill task.At the same time, northern parts of Brazil have a flatter terrain that aids faster execution, but with the huge amount of rainfall the region receives and presence of large rivers, accessibility and river crossing becomes an issue.
Land ownership in Northern Brazil is larger in size as compared to the South, which allows for easier resolution of right of way issues in these regions. Consequently, construction of transmission lines across highways and crossings in the South and Southeast parts of the country becomes a challenge.
(This interview is part of a bigger story “Brazilian power transmission beckons Indian developers“.)
