Brazil Watchdog Sees Further Delay in Abengoa's Power Line Project

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Brazil's electricity watchdog Aneel expects a further delay in the construction of 6,000 kilometers of power lines licensed to Abengoa SA, raising concern over the reliability of the country's grid as a massive new dam comes online, according to an internal document seen by Reuters. Abengoa halted construction of the transmission lines in 2015 amid a financial crisis at its headquarters in Spain which was followed by a bankruptcy filing at its units operating in Brazil, Reuters reported. Aneel has been trying ever since to revoke the licenses granted to Abengoa and offer the project, which it estimates will require some 8 billion reais ($2.55 billion) in additional spending, to another investor. But Abengoa has won court rulings allowing it to keep the assets and sell them as its Brazilian unit tries to emerge from bankruptcy protection. "Aneel does not expect the installations in question to be operational by 2022. There is also uncertainty in relation to the progress of the works beyond that date," the document said. Abengoa, whose original timeline had called for part of the transmission lines to already be up and running and the rest to be completed by 2018, did not immediately return requests for comment. Read more.