The invitation for bids for transmission facilities prepared by the Brazilian Electricity Regulatory Agency (ANEEL) enable domestic and international companies, individually or in consortium, to participate in the process. The groups that wish to participate must satisfy the legal, technical, and economic and financial pre-qualification requirements established in the INVITATION FOR BIDS.
The company must thus prove that it has met its obligations vis-à-vis the Brazilian government, particularly regarding taxation, and that it has the necessary net assets and technical capacity to build, maintain, and operate the facilities included in the bid.
Any company may participate in the public tender, including investors and companies that do not operate in the electrical sector, in which case they must have an agreement or a contract established with another company that can prove the technical capacity to operate and maintain the enterprise.
The participants must be previously qualified as provided for in the invitation for bids, and the awarded bidders must establish a legally-incorporated company for the specific purpose of exploiting the concession.
The transmission-line auctions have been successful thanks to a partnership of public and private capital to fulfil the task of increasing the basic network of the National Interconnected System – SIN by an additional 9.6 thousand kilometers between 1999 and 2003, with investments estimated at 5.7 billion reals.
ANEEL granted a total of 13.7 thousand kilometers of new lines through public tenders and authorizations, with investments (only for the lines auctioned) estimated at 8.4 billion reals. Of this total, 7.4 thousand kilometers were already in operation by the end of 2003 and another 800 kilometers were expected to start operation in 2004. When complete, the process will have generated approximately 25,000 direct jobs, attracting domestic and international investors, particularly from countries such as Spain, Italy, Argentina, Switzerland, and the United States.