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Italian Terna acquires concessions from Construtora Quebec in Brazil [free access]

April 12, 2019

Italian grid developer Terna, through its subsidiary Terna Plus—a Group company responsible for the development of international operations—signed a contract with Construtora Quebec, a company in the energy sector in Brazil, with the objective to acquire majority control of two concessions to build and operate a total of 350 km of electricity infrastructure in Brazil. The two concessions, which have a duration of 30 years from the signing of the contract, will guarantee the construction of two 500 kV high voltage lines for the transmission of electricity in the state of Minas Gerais.

 

The two concessions involve Lots 7 and 8, won by Construtora Quebec during Auction no. 02/2017 held by Agencia Nacional de Energia Eletrica (ANEEL)in December 2017. Lot 7 includes construction of the 500 kV, 165 km, Governador Valadares 6–Mutum C2 line, and Lot 8 includes the 500 kV, 189 km, residente Juscelino–Itabira 5 C2 line. Both the projects are scheduled to come online in March 2023.

 

The total value of the contract, including development and construction costs, is approximately USD130 million, which will be financed largely through a project financing operation. The agreement provides for the Terna Group to develop, construct and manage assets, with the attribution to Construtora Quebec of engineering, procurement, and construction (EPC) activities.