Sterlite Power has won a power transmission concession worth $800 million in Brazil, it said in a statement. The 1,800-km long project was won in a reverse auction tender with State Grid of China, Engie Elecnor and Power Grid Corporation of India being contenders. This is the third power transmission project of Sterlite Power in Brazil.
Sterlite’s bid had a discount of 35.72 per cent over the proposed maximum annual revenue and was one of the lowest discounts of the auction, which had an average discount of 40.46 per cent, the statement added. The project will be executed in the north of Brazil, in Pará and Tocantins.
Sterlite Power is already involved in two power transmission concessions located in the states of Rio Grande do Sul and Pernambuco. The two projects, with a concession period of 30 years each, are expected to see investment of Rs.1,350 crore.
The project will be part of the North-Southeast and North-Northeast interconnections. It is critical for the power evacuation from Belo Monte Hydroelectric Power Plant, the third-largest hydropower plant in the world. The transmission project will increase the reliability of the system in the northern region of Brazil and has the potential to create more than 5,500 direct jobs, according to the National Electric Energy Agency (ANEEL), the company said.
With this third project, Sterlite’s investment in Brazil has crossed over a $1 billion, the largest ever by an Indian company in Latin America. The company has set up a local team with a couple of advisors such as Charles Putz, partner of Rio Bravo Investimentos and former chief financial officer of Telefónica and CSN, and José Luiz Alquerez, former chief executive officer and chairman of Eletrobras.
T&D India in October this year had reported that the Brazilian power transmission market was attracting Indian companies, including Central transmission utility Power Grid Corporation of India. China is also a big investor in Brazil’s power sector—not just power transmission but also power generation.
(Featured photograph has been sourced from ABB and is for illustration only)
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