Cachoeira Paulista Transmissora de Energia Ltda.

MIGA has provided three guarantees in the amounts of €5.1 million ($6.7 million) to Isolux Wat S.A. for its equity investment of €5.7 million; €5.1 million ($6.9 million) to Cobra Instalaciones y Servicios, S.A. for its equity investment of €5.7 million; and $1.8 million to Elecnor, S.A. for its equity investment of $6.7 million in Cachoeira Paulista Transmissora de Energia Ltda. The guarantees are for a period of 13 years and provide coverage against the risks of transfer restriction and breach of contract.

The project involves the construction of an $80 million power transmission line in the State of Sao Paulo, which will increase transmission capacity as well as improve the reliability of the electricity supply. MIGA’s participation in the project is consistent with the World Bank’s objectives of supporting Brazil’s power sector. The project is considered crucial for the country’s economic development because it bolsters transmission capacity, which is considered a priority in Brazil’s electricity development program for 1999-2008.

A total of 1,200 workers will be hired during the construction phase of the project and about 30 people during the operation of the enterprise. The project will also pay taxes amounting to an estimated $64 million during the lifetime of the concession, and in accordance with Brazilian law, roughly $400,000 of the cost of the infrastructure project will be set aside for the establishment of conservation areas, parks, and protected areas.