📋 Tender Overview
Reference: 20230454
Release date: 17 July 2025
Promoter – Financial Intermediary
STATE ELECTRICITY COMPANY
Location
Brazil
Description
The loan will support an investment programme to upgrade and expand Neoenergia Coelba's electricity distribution network, Iberdrola's subsidiary, in Bahia, Brazil. The project comprises the extension, refurbishment and modernisation of lines, substations, control and protection systems, automatisation and measures to reduce commercial losses.
Additionality and Impact
The Programme comprises the extension, refurbishment and modernisation of the electricity distribution grid in Brazil, improving the quality and reliability of electricity supply as well as enabling the connection of new system users, including renewable generators and low-income populations. The Brazil strategic plan PDE 2034, published by the Ministry of Mines and Energy (MME), lays out ambitious goals for energy efficiency and renewable energy over the next decade, to which this project will strongly contribute.
From a policy standpoint, the Programme is of strategic importance for EU - framed under the Global Gateway Investment Agenda -, as it strongly contributes to the objectives set forth in the Multi Annual Indicative Programme (MIP) of cooperation between the EU, as well as Latin America and the Caribbean, especially the objectives of renewable energy and green transition. It supports the Bank's lending priority objectives on Energy (Energy Networks) as well as the transversal objective on Climate Action (mitigation and adaptation).
Moreover, it strongly supports Brazil's Non Determined Contributions, in the context of the Paris Agreement.
EIB financing to the Project will contribute to addressing market failures that may result in sub-optimal investments. These include negative environmental externalities and the need to ensure security of electricity supply, which has valuable public-good attributes. The investment programme will enable the connection of new users, improve the reliability of supply and support further decarbonisation of the power mix.
The Programme contributes to the achievement of the UN 2030 Agenda in particular with contribution to several Sustainable Development Goals (5,7,8,9,10,11,13,17).
The Project's overall economic viability is expected to be above the regulated financial rate of return, thus is expected to deliver a positive broader social benefit. The promoter is an experienced utility operator of electricity distribution networks and has the necessary capacity to manage the implementation of the Project and operate the assets over the term of the loan. Overall, the Project quality and results is expected to be Very Good.
The Bank's financial contribution is considered valuable to the client, as the EIB's offering provides more flexible conditions compared to market alternatives (e.g. longer tenor and grace period).
Objectives
The aim is to improve the reliab
