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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.
Project Name Pocos de Caldas Transmissora de Energia Ltda
Guarantee Holder Cobra Concesiones S. L.
Investor Country Spain
Host Country Brazil
Sector Power
Gross Exposure ($million) 20.7
Fiscal Year 2010
Status Proposed
Project Number 7157
Environmental Category B
Date SPG Disclosed October 6, 2009
Project Board Date November 19, 2009
ESRS Environmental and Social Review Summary for Pocos de Caldas Transmissora de Energia Ltda Project in
EIA EIA for Pocos de Caldas Transmissora de Energia Ltda Project in Brazil

Project Description

This summary covers a €25.67 million equity investment from  Cobra Concesiones Brasil S.L. (Cobra) in Spain in the Pocos de Caldas Transmissora de Energia Ltda transmission line project in Brazil. Cobra has applied for a MIGA guarantee of up to €14.15 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 303 km of 500 kV transmission lines. The lines will connect the existing substation in Jaguara with substations in in Ribeirao Preto and  Estreito and link the substations at Ribeirao Preto and   Pocos de Caldas. The project also includes the construction of a new substation at Riberiao Preto.

Environmental Categorization

The project is a Category B under MIGA’s environmental review procedures. Click here to view the Environmental and Social Review Summary.

Development Impact

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.

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