Commercial close achieved for Peru transmission line concession

Peru's Ministry of Energy and Mines and the concession company Consorcio Transmantaro S.A. signed last week the contract for the Friaspata-Mollepata transmission concession.

Proinversión had awarded the contract in August 2014 to a team led by Interconexión Eléctrica S.A. E.S.P., which later formed the SPV, Consorcio Transmantaro S.A. ISA beat out competition from Abengoa by bidding for an annual cost of US$5.72 million. Abengoa‘s bid was US$6.63 million.

Transmantaro is formed by CTM (60%), a subsidiary of ISA, and EEB (40%), the parent company of Grupo Energía de Bogotá.

The project involves the development of a 90.5 km 220 kVtransmission line which will link the Ayacucho system and the national grid by linking the Fiaspata substation and the Mollepata substation. The project also involves the upgrade of those two substations and the development of the new Orcotuna substation.

The project will be developed on a design, build, finance, operation and maintenance (DBFOM) basis. The concession period is 30 years. The project is expected to be operational in 2 years.

The total project investment is estimated at about US$38 million.

Currently ISA operates in Peru through its two transmission concessionaires REP and Transmantaro.