Peru's energy and mines ministry (MEM) has signed the concession contract for Montalvo-Los Héroes 220 kV transmission line.
Spain's Red Eléctrica Internacional announced in Decemebr it had been awarded the concession contract for the Montalvo-Los Héroes 220 kV transmission line in Peru.
The award of the concession contract, which includes the construction of the new 220 kV line (with a length of 129 km) and the enlargement of the Montalvo and Los Héroes substations, will enable the electricity supply in the area of Tacna in the south of Peru to be consolidated.
Red Eléctrica will be responsible for the design, financing, construction, operation and maintenance of the facilities for a period of 30 years, in addition to a construction period of 33 months. The investment in this project, whose commissioning is scheduled for 2019, is estimated at US$20.2 million.
Red Eléctrica offered an annual cost of US$3,130,061 to recover the investment and O&M of the project. This was 51% lower than expected by the Government. The company beat out competition from Conelsur S.A.C., which offered US$ 6,127,633 and EDEMSA Sur, which offered US$ 6,175,713.
This project strengthens the transmission system in the area of Peru near the border with Chile, which is an important step for the future interconnection of the electricity systems of both countries.