Brazil’s electricity industry regulator, Aneel, disqualified one of the winners of a Brazilian energy tender for transmission lines on Friday, claiming that the consortium was unable to prove the necessary qualifications to complete the project.
Genesis Consortium disqualified in Brazilian energy tender
The Genesis consortium, made up of Entec and Best Car Transporte de Cargas, had won two lots in the June tender for power transmission lines, including the second-largest development put up for auction that day. However, the regulator stated that the group was unable to prove its legal, technical and economic-financial qualifications, nor the fiscal health required to execute the projects.
According to the tender rules, the regulator will now contact the runners-up for both lots, namely ISA Cteep and Rialma Empreendimentos, to see if they are interested in taking over the projects.
Genesis ruled out of Brazil’s energy tender: Rialma and ISA Cteep approached by regulator
Among the reasons given for the disqualification, Aneel said that documents from Best Car, the consortium leader, classify it as a micro-business, although it claims to have annual sales of around 800 million to 1 billion reais ($206 million).
In addition, the regulator said that the consortium had hired another company to build the projects won at the auction, but failed to submit documentation guaranteeing the contractor’s ability to carry out the work and operate transmission assets of this scale.
At the time of the auction, Genesis CEO Denis Rildon gave no details of the group’s origins or backers,
saying only that the consortium, although unknown to the general public, had “very extensive” experience and knowledge of the electricity sector.
Rildon also stated that the resources needed to make the multi-billion dollar investments had already been secured. Genesis could not immediately be reached for comment.