SAO PAULO - Brazil’s electricity regulator Aneel approved on Tuesday transferring to Shanghai Electric Group Co Ltd a power transmission project that will require investments of 3.3 billion reais ($1.01 billion).
The project in Rio Grande do Sul state had originally been awarded to the Eletrobras unit Eletrosul Centrais Eletricas SA. After the companies had reached a deal for the transfer, the regulator approved it on Tuesday.
Aneel has granted Shanghai Eletric six months to create a Specific Purpose Company (SPE) in Brazil. The deadline for completing the works will be four years and the concession contract will last 27 years.
The deal follows a spree of Chinese acquisitions in the Brazilian power sector. State Grid Corp of China has become Brazil's second largest electricity transmission company while China Three Gorges Corp is the country's No. 2 private power generation firm, according to China's embassy in Brasilia.
Source: Reuters, Nasdaq