Incomplete Belo Monte transmission lines caused US$400mn loss

Brazil's audit court (TCU) concluded that failure to complete work under a transmission line concession contract for the Belo Monte hydro plant caused a nearly 1.5bn-real (US$387mn) loss for the country.

Spain's Abengoa was the line's concessionaire, but construction works were interrupted in December 2015 and the next month the company filed for bankruptcy protection. A total of 6,300km of lines were not finished.

"This caused damage to the public administration and is impacting electricity transmission from the north region to the southeast and northeast," TCU said in a statement.

The court said the failure affected Brazil's power grid reliability and put supply at risk. The lack of lines caused a 575mn-real loss for the country during the 2016-17 rainy season and amounted to 832mn reais for the same period in 2017-18, TCU said in a statement.

The court recommended power regulator Aneel prosecute the company for the damage caused.

The 11.2GW Belo Monte, on the Xingu river, is the third largest hydro plant in the world.