Peru awards power transmission concession

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Peru awards power transmission concession

Spain's Red Eléctrica Internacional, in a consortium with the Peruvian investment fund manager AC Capitales, has been awarded the concession of the 220 kilovolt (kV) Azángaro-Juliaca-Puno line in Peru, in an international public tender.

The project, with an investment of US$70 million (about €61 million) and a construction period of 33 months, includes the design, financing, construction, operation and maintenance of a 220 kV line and 115 km in length, and its associated substations for a period of 30 years.

The consortium won the concession project offering an annual payment of US$5.687 million to cover the investment and the operation and maintenance cost (O&M). The offered price is 45 % lower than the prices established in the tender documents.

The consortium beat out competition from four other companies:

  • Abengoa Perú- US$7.103
  • Spain's Cobra Instalaciones y Servicios (ACS Group) - US$7.743;
  • Colombia's Interconexión Eléctrica S.A. E.S.P. (ISA) - US$8.630

These new infrastructures will enable the evacuation of energy from the hydroelectric power stations of Ángel and San Gabán and will reduce the overloading of the existing 138 kV lines. It will strengthen the transformer capacity in the Azángaro, Juliaca and Puno substations, which will ensure the electricity supply in these regions.

The awarding of this concession, which is part of the international expansion plans of the Red Eléctrica Group strengthens the role of Red Eléctrica Internacional as an electricity transmission agent in the south of Peru, where it acts as a shareholder and strategic operator in two concessions of transmission lines, totalling 942 km in length, in the regions of Arequipa, Cuzco, Moquegua, Tacna and Puno.

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