China State Grid to Build New Transmission Lines in Brazil and Invest USD 39.7 billion

China State Grid, has won one of three concessions to build new electricity transmission lines in Brazil and aims to invest USD 39.7 billion in the sector, according to the Government.

Alexandre Silveira, Brazil’s Minister of Mines and Energy, emphasized that it was the largest tender of its kind ever held in the country, in which contracts were granted for the construction of transmission lines stretching over 4.471 kilometers.

The concession obtained by State Grid, in December last year, includes the construction of 1.513 km of direct current transmission lines and the maintenance of another 1.468 km in the states of Maranhão, Tocantins and Goiás, as well as the construction of two substations, with a total investment of around 18 billion reais (USD 3.6 billion).

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In addition, State Grid intends to invest another 200 billion reais (USD 39.7 billion) in the Brazilian electricity sector, added Alexandre Silveira.

“We have an excellent relationship with China and we are grateful that investors believe in Brazil. We are a country that respects contracts and has legal stability and security, which are so important for the electricity sector,” said Silveira.

Celeo Redes, part of the Spanish Elecnor group, was awarded the contract for a 388-kilometer line between the states of Minas Gerais and São Paulo, with an investment commitment of 1.2 billion reais (240 million dollars or 220 million euros).

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In the case of the Brazilian consortium Alupar, the project consists in the laying of 1.102 kilometers of lines in the states of Goiás, Minas Gerais and São Paulo, with investments of 2.5 billion reais (500 million dollars or 462 million euros).

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