|Summaries of proposed guarantees are provided prior to Board consideration and before final contract signing, and they are therefore subject to change. Project briefs are disclosed after Board consideration and contract signing and reflect the terms of the project at the time of contract signature.|
This summary covers a €21.12 million equity investment from Cobra Concesiones Brasil S.L. (Cobra) in Spain in the Serra Paracatu Transmissora de Energia Ltda transmission line project in Brazil. Cobra has applied for a MIGA guarantee of up to €11.66 million for a period of up to 15 years against the risks of breach of contract and transfer restriction.
The project consists of construction and operation of a total of 246 km of 500-kV transmission line and two new substations. The new transmission line will connect new substations in Paracatu and Pirapora in the state of Minas Gerais.
The project is a Category B under MIGA’s environmental review procedures. Click here to view the Environmental and Social Review Summary.
The project is expected to help alleviate the imbalance of electricity supply and demand caused by the geographic distance and climate difference across regions. Transmission lines in Brazil tend to cover large distances, resulting from the fact that most energy is produced in hydroelectric dams located far from major energy consumption centers. The interconnected transmission line system allows for more consistent generation of energy, as it permits regions of the country to continue receiving energy even if there is a dry spell.
The proposed project is in line with the World Bank’s country partnership strategy for Brazil, one of the key objectives of which is to support the country’s competitiveness and investment climate through improvements to infrastructure networks.