NEWS

PROINVERSIÓN AWARDS PUERTO MALDONADO-IBERIA TRANSMISSION LINE AND CHIRA VALLEY SUBSTATION

Lima, April 30, 2021.- PROINVERSIÓN awarded CELEO REDES, S.L.U. the 138 kV Puerto Maldonado - Iberia Transmission Line and the 220/60/22.9 kV Valle del Chira Substation projects, which will enable to efficiently and qualitatively meet the growing demand for electric power in the departments of Madre de Dios and Piura.

CELEO REDES, S.L.U. won the Successful Bid by offering a total investment cost of US$ 28'821,826.17 for the two projects and a total annual operation and maintenance cost of US$ 847,881.34. The investment cost offered is 38.6% lower than the maximum values established for this tender (US$ 46.9 million).

The concessionaire -which will be the successful bidder- will be in charge of the design, financing, construction, operation and maintenance of both projects.

The promotion process for the 138 kV Puerto Maldonado - Iberia Transmission Line and 220/60/22.9 kV Valle del Chira Substation projects was competitive as four (4) bidders submitted their economic offers.

"This competitive award is the result of the intense promotion work that the entity has been developing to attract global investors to the local market, so that they bet on infrastructure projects and public services, and improve the quality of life of Peruvians," said the executive director of PROINVERSIÓN, Rafael Ugaz.

"At PROINVERSIÓN we continue to promote projects of national scope and of great economic and social impact, generating better development conditions for our compatriots", added the executive director.

Meanwhile, the representative of CELEO REDES, S.L.U., Enrique Ferrus, highlighted the high level of competition in the process, as well as its transparency at all stages of the tender. "We have the experience and capacity, and we hope to continue supporting the development of Peru's infrastructure," he added.

Celeo Concesiones e Inversiones (CELEO) enters the Peruvian electricity market through this tender. It operates in the power transmission and operation and maintenance of electrical installations in the solar thermal and solar photovoltaic segments in Spain, Brazil and Chile.

Projects

The Puerto Maldonado - Iberia 138 kV Transmission Line project will provide electricity to the city of Iberia and surrounding towns, including Iñapari (Madre de Dios), through connection to the National Interconnected Power System.

This will facilitate access to a reliable and continuous electricity supply, benefiting 122,000 Peruvians and many local businesses. It will also promote the development of productive, commercial and service activities such as the processing of forest products for biocommerce and tourism.

The 220/60/22.9 kV Valle del Chira substation project will benefit more than 440,000 people in the towns of Paita, El Arenal and Sullana, Piura region, with quality electricity supply, thus strengthening the operation of the electricity system in northern Peru. In addition, it will solve technical problems in the system, such as congestion in the transmission lines and voltage drops in the substations.

Both projects have been structured under the Public-Private Partnership (PPP) mechanism, which will guarantee a quality, specialized and sustainable service during the concession period.

The term of each concession will be 30 years, plus the estimated construction period of 28 months for the "220/60/22.9 kV Valle del Chira Substation" project and 43 months for the "Puerto Maldonado - Iberia 138 kV Transmission Line" project. The calculation of each contract will start from the subscription date, scheduled for July 2021; the Commercial Operation of both projects is scheduled for November 2023 and February 2025, respectively.

Finally, this successful award is the result of an intense and coordinated work between PROINVERSIÓN, the Ministry of Energy and Mines (grantor), the Ministry of Economy and Finance and Osinergmin.

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