Argentina transmission watch: Mendoza tender, Buenos Aires' US$1bn China financing

Two parties submitted technical bids for a contract to strengthen Argentine province Mendoza’s power system.

Work involves construction of a 22km, 220kV line – Cruz de Piedra-Gran Mendoza – that will bolster supply during demand spikes and when hydroelectric and thermoelectric dispatch is impacted. Another objective is substituting power generated from liquid fuels.

The line, first conceived more than 40 years ago, will link the Cuyo system with the national grid.

Distrocuyo and Semisa Infraestructura bid for the contract, the Mendoza government said in a statement. Economic bid envelopes are due to be opened March 14. 

Provincial energy company Emesa designed the US$20mn project and provincial electricity infrastructure fund Fopiatzad will oversee the work, according to an earlier statement. 

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Argentina will carry out a US$1.1bn transmission project with State Grid Corporation of China, the Buenos Aires provincial government said.

Bank of China and Industrial and Commercial Bank of China will provide financing, it added.

The news comes following meetings between Argentine and Chinese officials during President Alberto Fernández’s visit to the Asian country over the weekend.

Last month the federal government had said it was in talks with Chinese Electric Power Equipment and Technology Co, along with the two banks, about the project. Central elements are a 500/220/132kV transformer station and more than 500km of 500kV, 220kV and 132kV power lines. 

The infrastructure would benefit users in the Buenos Aires metropolitan area and help dispatch power to the zone from renewables plants. 

Fopiatzad recently accompanied seven potential bidders on a site visit (pictured): Obras Andinas, Ice Argentina, Rovella Carranza, Sinec, Dumandzic/Interacción Consultora, Grupo Oeste and Sedin Servicios de Ingeniería.

Some parts of this area have not seen significant projects in the past 30 years, according to a June 2020 energy planning report, which outlines the power infrastructure needed for Buenos Aires and other parts of the country. 

Electricity supply was under the spotlight in December and January in a context of searing temperatures, a drought impacting hydroelectric output, and associated power cuts and rationing.