China's State Grid Brazil Holding S.A. will build and operate the 2,550km-long transmission line conveying power from the Belo Monte hydroelectric power plant, in the northern state of Pará, to southeast Brazil. The company won an auction held friday (Jul 17) on the São Paulo Stock Exchange (Bovespa) by the Brazilian Electricity Regulatory Agency (ANEEL).

The firm agreed to receive as the Annual Revenue Allowed (the amount to which the company will be entitled for providing the public service, referred to as RAP in the Portuguese acronym) $314.90 million, 19% lower than the maximum previously established. Another contestant, Abengoa Concessões Brasil Holding S.A., bid $334.34 million, 14% below the highest value allowed.

The concession is to last 30 years starting from the contract signing date. Investments are estimated at $2.23 billion, and works are due to end in 50 months. New direct jobs should total some 16.8 thousand.

The energy produced at the Belo Monte hydroelectric facility will be transmitted to the Rio Terminal Station, in Rio de Janeiro state. The project includes a power boost for Rio's metropolitan region and higher reliability for the systems serving the country's north and southeast regions.