Four companies prequalify as bidders for Peru-Ecuador electricity interconnection project

The Private Investment Promotion Agency (ProInversion) informed that the international public bidding for the 500 kV Piura Nueva - Frontera Substation Transmission Line project, which is part of the development of the 500 kV electrical interconnection between Peru and Ecuador, has four (4) pre-qualified bidders.

The prequalified companies are CELEO REDES, S.L.U., COBRA INSTALACIONES Y SERVICIOS S.A., INTERCONEXIÓN ELÉCTRICA S.A. E.S.P. and ALUPAR PERU S.A.C.

The publication of the final version of the concession contract is scheduled for the last week of June and the awarding of the concession in July 2023.

The execution of the project, which requires an estimated investment of US$ 223 million, will provide energy supply security for Peru and Ecuador, increasing reliability and electricity transmission capacity.

It is worth mentioning that there is hydrological complementarity between the Peruvian and Ecuadorian basins: when there is drought in Peru there is abundant rainfall in Ecuador, and vice versa, which means that when there is surplus hydroelectric generation in one country it can be exported and thus have access to lower energy prices in the other.

The 500 kV Piura Nueva - Frontera Substation Transmission Line is promoted by ProInversion, on behalf of the Ministry of Energy and Mines, through the Public-Private Partnership (PPP) modality. Among the concessionaire's obligations is the construction of the 500 kV transmission line in Peruvian territory, from the Piura Nueva substation to the border crossing point, with an approximate length of 270.3 km. Likewise, in Ecuadorian territory, the corresponding section of the interconnection is being developed, starting from the Pasaje substation and running 74 km to the border.

"We are moving forward in coordination with the Ministry of Energy and Mines to make the electric interconnection between Peru and Ecuador a reality soon, increasing the reliability and capacity to transport electricity with efficiency and quality", highlighted the executive director of ProInversion, José Salardi.

The concession term includes a 46-month construction period and 30 years of operation and maintenance from the time it is put into commercial operation.