REP to award interconnection contract Nov.14

Peruvian transmission company REP plans to award a contract on Friday to build the first stage of a US$139mn transmission line linking Peru and Ecuador, REP's CEO Carlos Naranjo told BNamericas. REP received bids from 16 companies by the October 20 deadline. The companies are: Electroingenieria, Cointec, Sigdo Koppers, NGK, Cobra, Pirelli, Essdei H, Draka NK Cables, Electricas de Medellin-Proansa, Consorcio Sadeven-Sn Martin, Brametal, Procables, Grana Montero, Cosapi, GHF Representaciones and Abengoa. The contract, to build a 220kV, 52km transmission line from Zorritos substation to the border with Ecuador, is the Peruvian part of the US$15mn first stage of the interconnection project. Construction would start in mid-January and conclude by September, when the whole line is scheduled to start operations, Naranjo said. The line will transport 100MW from Peru to Ecuador, since Peru's northern grid is too weak to receive power from Ecuador. REP awarded the engineering design contract to Peruvian engineering company Cesel in early August, and a contract for expanding the Zorritos substation to German company Siemens in September. Siemens is scheduled to finish work in August 2004, Naranjos said. REP and Ecuador's state transmission company Transelectric will split construction costs of the first stage, with Transelectric paying US$8mn through rates increases, and ISA paying US$7mn from its own resources in line with its concession agreement with Peru's government. REP (Red de Energia de Peru) is owned by Colombia's ISA Group (30%), ISA subsidiary Transelca (30%) and Bogota's municipally-owned power company EEB (40%).