Cemig cancels US$475mn Light for All contracts
Bnamericas Published: Friday, March 25, 2005
Brazilian integrated power company Cemig cancelled 1.3bn reais (US$475mn) in contracts with three local engineering firms for the expansion of its distribution network, Agência Estado news service reported. The company will revise the contracts to avoid legal discrepancies and to try and lower costs, the report said. It did not say when the tender would be relaunched. Cemig had held a tender to pick companies to carry out 80% of the 146,000 connections in poor rural areas under the federal government's Light for All power supply expansion program through 2006. In late February, Cemig announced Brazilian engineering companies Odebrecht, Andrade Gutierrez and Quieroz Glavão as winners despite prices a little over Cemig's own reference price.
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