Eleven concessions concerning power transmission lines in Brazil have been awarded, following an auction by the Ministry of Mines and Energy on Friday 15 December. The eleven lots collectively include 4,919km of transmission lines and substations with a total capacity of 10,416 MVA, and represent BRL8.75 billion (US$2.66 billion) in investments.

Brazilian power holding Neoenergia SA was the biggest buyer with two lots purchased. Sterlite Power, an Indian power transmission company, won the largest lot of the auction, worth US$800 million. It concerns a 1800km transmission project to be built in the states of Pará and Tocantins, in the north of Brazil. Other participants in the auction included world-leading industry players State Grid of China, Engie and Elecnor.

The concession agreements signed will be 30 years in length. The Ministry claim that the projects will directly and indirectly create 17,800 jobs.

The new transmission facilities, which are going to be built in ten states across the country, will enable the government to meet the growing power demand in these regions, allow the complete flow of energy from contracted plants and make it possible to connect more new generation projects. The Ministry expect construction of the power lines to take between 36 and 60 months.

The auction was part of the partnership component of the Time to Move Forward programme. This national infrastructure programme has established a new regulatory framework for concessions, with clearer, more transparent and more competitive rules, to promote more partnerships with private companies for infrastructure projects in Brazil.

To date, the programme has included 145 projects, including airports, highways, hydroelectric power plants, ports and others. The expectation is that the estimated investments (amounting to BLR141 billion (US$42.8 billion)) will help drive economic and social development, employment and wealth for the country.