The Procuring Authority, Agência Nacional de Energia Elétrica or ANEEL, signed a PPP contract in 2008 with the Project Company, Linhas de Xingu Transmissora de Energia Ltda., to design, build, finance, operate and maintain a transmission line between Tucuruí and Jurupari in Brazil. The transmission line project is a large scale high-voltage transmission project that runs through the Amazon forest. The line runs through six municipalities, and connects three substations to the national grid.
Challenges related to environmental permitting, environmental conditions, adverse site conditions, tropical weather and protests during the construction phase of the project caused significant delays and have had a substantial impact on the Procuring Authority's approach to future PPP contracts with respect to estimating construction timelines for transmission projects. The Procuring Authority has since introduced additional clauses in its transmission line PPP contracts in order to better manage the risks which caused the delays in the Tucuruí to Jurupari project. The project is a good example to demonstrate how lessons learned during PPP contract management can inform the structuring of future similar projects.