INE pre-qualifies 4 for rural power project

Nicaragua's state power company INE has pre-qualified four companies for a contract to supply power to El Ayote and Santo Domingo municipalities in Chontales department from a new 700kW hydro project, a company source told BNamericas. The pre-qualifiers are Honduran consortium Emce, Nicaraguan companies American Caribbean International (ACI), Con Américas and the Nicaraguan consortium Siquia-El Ayote. The project includes the construction of at least 30km of the 120-140kV transmission line, and the contract allows the possibility of selling any power surpluses to the national grid. "Right now, we are finishing the bidding rules so that they will be ready at the beginning of September," the source said. INE expects to award the contract by February 2005, the source said. Financing will come from the winning company, a government subsidy, and bank financing. The government subsidy consists in a credit that was given by the International Development Association (IDA) and a donation given by the Global Environment Facility (GEF). Construction is expected to take two years, the source added.