Terna, through its subsidiary Terna Plus, the Group company responsible for the development of international activities, today signed an agreement with Construtora Quebec, a construction company in the energy sector active in Brazil, aimed at acquiring the controlling share of two concessions for realize and operate overall approximately 350 km of electrical infrastructure in the South American country.
The two concessions, which have a duration of thirty years from their signing, will lead to the construction of two 500 kV lines (and related arrivals at electrical stations) for the transmission of electricity in the state of Minas Gerais (in central-eastern Brazil): the 'Linha Verde I' (called 'Governador Valadares-Mutum') about 160 km long and the 'Linha Verde II' (called 'Presidente Juscelino-Itabira') about 190 km long. The new power lines, in particular, will make it possible to increase efficiency, safety and sustainability of the Brazilian electricity grid and, at the same time, to exploit the potential of generation from renewable sources.
The total value of the contract, including development and construction costs of the works, is approx 130 million dollarsand will be largely financed through a project financing operation.
The agreement provides for the development, construction and management of assets for the Terna Group, with the assignment of EPC activities to Construtora Quebec. In accordance with the concession contracts signed with the Brazilian regulator ANEEL (Agência Nacional de Energia Elétrica), the infrastructures must come into operation by March 2023.
The agreement reached with Construtora Quebec further strengthens Terna's role in Latin America as an industrial and electricity infrastructure operator. The distinctive skills of the company are placed at the service of the development of the electricity system in Brazil: a growing country characterized by a favorable regulatory framework. The transaction, however, is finalized in line with the strategy of limited capital exposure and low risk profile.
The closing of the contract signed between Terna Plus and Construtora Quebec is subject to the occurrence of certain conditions, including the authorization of the Regulator ANEEL and of the Antitrust CADE (Conselho Administrativo de Defesa Econômica).
