BNDES announces US$218mn generation, transmission financing

Brazil's national development bank BNDES has agreed to lend a total of 628mn reais (US$218mn) for the Norte-Sul II transmission line and a 50MW hydroelectric project in Minas Gerais state, the bank said in a statement Friday. Financing for Novatrans Energia's 1,278km, 500kV line between the northeast state of Maranhao to Brasilia comes to 550mn reais. The project includes the expansion of six substations and will double the line's existing capacity. The Inter-American Development Bank (IDB) approved US$66mn financing for the project at the end of October. The other 77.7mn reais of BNDES financing is for the construction of the 50MW Picada hydroelectric dam, which the Cia Paraibuna de Metais (CPM) zinc-producing unit of conglomerate Votorantim is developing on the Peixe river. The BNDES funds cover 61.5% of the project's total construction costs. CPM will use power from Picada to supply its plant at Juiz de Fora.