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Projects

Project Brief

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. Environmental and Social Review Summaries are provided for projects assigned an Environmental Assessment Category of A or B.

 

Project name
Porto Primavera Transmissora de Energia Ltda. (PPTE)
Project ID
6157
Fiscal year
2007
Status
Not Active
Guarantee holder
Cobra Instalaciones y Servicios, S.A.
Investor country
Spain
Host country
Brazil
Environmental category
A
Sector
Power
Gross exposure
 $20.6 million
Project type
Non-SIP

MIGA has issued guarantees of $20.6 million to Cobra Instalaciones y Servicios S.A. (Cobra) of Spain to cover its $22.9 million equity investment in a transmission line project in Brazil. The coverage is against the risk of breach of contract and transfer restriction for up to 15 and 10 years, respectively.

The PPTE project consists of the construction and operation of two 230-kV transmission lines, both originating from a new substation in the Municipality of Rosana (State of São Paulo) but ending at two different existing substations: one near Dourados and the other near Campo Grande, both in the State of Mato Grosso do Sul. The new substation (Porto Primavera) is being built on Ilha do Bananal, near the left (southeast) bank of Rio Paraná on 8 hectares within the existing Porto Primavera (also known as Engenheiro Sérgio Motta) hydroelectric complex on the Rio Paraná, located just upstream of the confluence with the Rio Paranapanema, in the Municipality of Rosana. The project will be an interconnector between the Central West and the Southeast Regional grids.

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.

For nearly two decades, investment in Brazil’s electricity sector remained low, a result of austerity programs begun in the early 1980s. But in an effort to spur economic growth, the Cardoso administration instituted reforms allowing private participation in the infrastructure sector. Today, most of the resources for expansion of transmission lines result from public-private partnerships, with 13,700 additional kilometers of lines having been constructed since the late 1990s, resulting in the direct employment of some 25,000 people.

The proposed project is part of this overall effort and is expected to further facilitate Brazil’s electricity distribution, providing a consistent energy source needed to fuel the country’s economic growth. The project is in line with the World Bank’s country assistance strategy for Brazil, one of the key objectives of which is to help the country become more competitive by improving its infrastructure.

 
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