BANDEIRANTE CAPITAL EXPENDITURE PROGRAM

BANDEIRANTE CAPITAL EXPENDITURE PROGRAM
(BR-0401)
PROJECT ABSTRACT
The project to be financed by the Bank consists of an investment program to be
implemented by Bandeirante Energia S.A. (“Bandeirante”), a subsidiary of Eletricidade
de Portugal (“EDP”), in respect of its distribution system located in the State of São
Paulo, Brazil. The investment program is comprised of the following components: (i)
expansion of Bandeirante’s electricity distribution and transmission network, including
rural areas; (ii) renewal and upgrade of Bandeirante’s existing electricity distribution and
transmission system; and (iii) rehabilitation and improvement of Bandeirante’s
distribution operations.
Bandeirante is a private electricity distribution company that operates in the State of São
Paulo, Brazil, under a 30-year renewable concession. The concession was granted at the
time of the privatization of Eletropaulo in 1998 (which resulted in the creation of
Bandeirante) and authorizes Bandeirante to distribute electricity in its service area,
consisting of 9,644-square kilometers and representing a population of 4 million
inhabitants in 28 cities.
The total cost of the program is approximately US$155.7 million, of which US$100
million is to be funded from proceeds of the IDB Loan. The investment program aims to
expand and modernize Bandeirante’s electricity network and business management
support systems, allowing the company to: (i) provide electricity to new customers,
including those in rural areas; (ii) increase productivity gains and reduce costs; and (iii)
improve the quality and reliability of its electric network.