Power sector investment projects by Brazilian-Chinese consortium in Brazil under the spotlight in Shanghai

31 October 2012

The projects to build power transmission lines starting in 2013 by Brazilian company Companhia Paranaense de Energia (Copel) in consortium with China’s State Grid Corp were analysed Tuesday at a meeting in Shanghai, according to press from the Brazilian state of Paraná.

The state’s governor, Beto Richa, said at the meeting that the partnership between the two companies was important, “given that State Grid Corp is the world’s largest power transmission company and that its link to Copel boosts the quality of the Parana-based company.”

Last March, Copel and China State Grid made the winning bid in an auction of Brazil’s power sector regulator Agência Nacional de Energia Eléctrica (Aneel) for two concessions to build and operate 1,605 kilometres of transmission line and four new substations.

Investment is estimated at 2.7 billion reals (US$1.327 billion) and is the largest ever power transmission project for Copel.

In order to carry out the projects two companies have been set up – Matrinchã Transmissora de Energia and Guaraciaba Transmissora de Energia – each responsible for a specific amount of work, and Copel has a 49 percent stake and State Grid a 51 percent stake in each of the new companies.

Copel – Companhia Paranaense de Energia, the State’s largest company, was set up in October 1954 and made an initial public offering in April 1994. In July 1997 it became the first Brazilian power sector company to be listed on the New York Stock Exchange.

China’s State Grid Corp was created in December 2002 as a state company with a mission to provide electricity on an economic and sustainable basis. (macauhub)