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Eletrosul, Shanghai Electric and Clai Fund to invest in transmission projects in Rio Grande do Sul

Eletrosul, Shanghai Electric and Clai Fund signed the structuring agreement establishing the detailed conditions of the partnership for the viability of the projects that make up the Lot A resulting from ANEEL Auction 004/2014, which provides for the implementation and operation of transmission projects of energy in the Rio Grande do Sul.

The celebration ceremony of signing was held on Friday (17/11) in the Piratini Palace in Porto Alegre (RS). The project involves the construction of 1900 km of transmission lines, eight new substations and the expansion of 13 existing substations. The effectiveness of the agreement is subject to approval by the internal boards of parts and Aneel. Total investment was estimated at R $ 3.967 billion.

The new transmission system will increase the reliability of power supply to the metropolitan area of ??Porto Alegre and establish a new point of care to the north of the state. The projects will also be essential to enable the flow of energy future wind farms and thermoelectric projects in Rio Grande do Sul.

The structuring agreement provides that all relevant advances will be made after the approval of the governments of both countries and will be adjusted by the report  due diligence . Preliminarily, the structuring agreement sets out two stages for the consolidation of the partnership, the signing: 1) 100% of the concession currently held by Eletrosul will be transferred to a Special Purpose Company (SPC) which will be constituted by the Shanghai Electric, and You will have the responsibility to the construction, operation and maintenance of future developments; 2) after approval by Aneel the grant transfer the ownership is restructured composition of the SPE. In the final configuration, with the completion of the capital increases, the Shanghai Electric and Clai Fund will hold shares that will total 69% stake in SPE and Eletrosul will account for 31%.

"The partnership with Shanghai Electric and Clai Fund crowns the union of efforts for economic and social development of the State of Rio Grande do Sul and Brazil, generating thousands of direct and indirect jobs," the president of Eletrosul Gilberto Odilon Eggers.

As a partner in the project, it will be up to Eletrosul driving the technical aspects related to the continuity of the process of obtaining the necessary licenses, as well as the coordination of land and environmental issues. Upon completion of the projects, Eletrosul will also assist in the operation and maintenance procedures of the new transmission system.

The four batches of developments contemplate 1900 km of transmission lines, and eight lines of 525 kV and 230 kV nine lines, substations and eight (three of five 525 kV and 230 kV) and expansion of substations 13 existing. According to Aneel, the deadline for the start of commercial operations of the projects will be up to 48 months from the signing of an amendment to the concession contract.

The agreement reached with Shanghai Electric and  Clai Fund  is the result of the public tender launched by Eletrosul in 2016 for the selection of companies interested in establishing a partnership for the implementation of projects of Lot A of Aneel Auction of November 2014, including his four batches, providing the new entrepreneur the permitted annual revenue (RAP) of R $ 336 million, according to the reference value.