Brazil’s government scored a major advance in its concessions program on Monday with the auction of 31 high-tension transmission line contracts. A total of 21 consortiums, including participation by 50 domestic and international partners, bought 31 of the 35 transmission line concessions on auction. They paid the government R$2.7 billion in fees. Winners obtained rights to build, maintain and operate transmission lines for 30 years. Winning bids are based on discounts bidders offer from government-set utility rates. The average discount at Monday’s auction was 36.5 percent. A spokesman for the auction’s sponsor, the National Power Authority (Aneel), said competition was “keen” at the auction, which was held in São Paulo. The transmission lines total some 7,400 kilometers in 20 states and the government is planning additional auctions later this year for concessions in areas such as highways and railroads.
Link to government news agency releaseMore Testimonials