INTERNATIONAL PUBLIC TENDER CONCESSION OF 500 k V
INTERNATIONAL PUBLIC TENDER: CONCESSION OF 500 k. V MANTARO-MONTALVO TRANSMISSION LINE
1) PROJECT PROFILE Sector: power transmission. Concession to design, finance, build, operate and maintain a transmission line (500 k. V, 900 km) and associated substatios between the Central and Southern Peru. Concession term: 30 years + construction period. Grantor: State of Peru, represented by the Ministry of Energy and Mines. Implementing entity: Proinversion. 500 KV Transmission Line Mantaro-Marcona. Socabaya-Montalvo and Associated Substations Tender date : II Q 2013. Estimated CAPEX: US$ 350 – 400 million (excluding without Value Added Tax). 2
2) DESCRIPTION Main project components: • Construction of tranmission line between Mantaro-Marcona-Socabaya-Montalvo (500 k. V and estimated total distance of 900 km). Route • Construction of two new substations: Mantaro Nueva 500/220 k. V and Socabaya Nueva 500/200 k. V. • Expansion of three existing substations Campo Armiño 220 k. V, Marcona 500 k. V and Montalvo 500 k. V Montalvo. • Connections from 500 k. V to 220 k. V substations, and ancillary works. The project is the second 500 k. V transmission line between Central and Southern Peru, in orden to strengthen the National Interconnected Power System (“SEIN”). 3
3) FINANCIAL DESCRIPTION v Low -risk activity. v Proinversion has awarded several transmission lines in recent years following a similar contractual structure. Contracts are well-known in the banking system and financial markets. v The concession holder is responsible for financing. v Transmission is a regulated activity and concession holder remuneration is determined in the bidding process. v CAPEX offered is converted into an annuity (30 years, 12% return), plus v Operating and maintenance cost offered. v Very low revenue collection risk. 4
4) DEMAND DRIVERS v Strong and sustained growth: Peru GDP is expected to grow above 6% in the next 3 -5 years. v The Central region of Perú will concentrate the highest power generation growth. The Southern region of Peru will have the highest demand growth (associated with large mining projects and expansions in construction, see table below). v The Mantaro-Montalvo line project will enable power transmission between Central and Southern Peru. v The line will connect Marcona (nearby Shougang Hierro Peru iron mine in expansion), Socabaya (nearby Cerro Verde copper mine in expansion) and Montalvo (nearby Quellaveco copper project and Toquepala copper mine in expansion). New Demand from Major Mining Projects Southern Peru 5
5) TENDER PROCESS: TIMETABLE Current timetable: Call for tenders 2012 First contract draft Second contract draft I QT 2013 Qualification of Bidders Final contract II QT 2013 Tender Date and Award Closing III QT 2013 66
5) q TENDER PROCESS: BIDDER QUALIFICATION Financial and operational qualification criteria: Requirements Financial: Minimum equity ; and US$ 70 million. Financial: Minimum total asset; and US$ 210 million. Operational: direct operation of electric transmission systems that meet the following conditions: Length: More than one thousand kilometers (1 000 Km) in voltages higher or equal to 220 k. V. Transformation capacity: More than 500 MVA in substations in voltages higher or equal to 220 k. V. 77
5) TENDER PROCESS: OFFERS AND AWARD Competition factor: lower total cost of service. The total cost of service cost comprises • Annuity of the CAPEX offered (in 30 year period with 12% return). • Annual cost of operation and maintenance offered. Format for submission of offers: Number Amount 1) CAPEX cost, US$ (*) 2) Annual cost of O&M, US$ Note: (*) Global amount. It will be converted into an annuity and added to O&M cost to determine total service cost. 88
6) CONTACT INFORMATION Public information on Proinversion’s web page: www. proinversion. gob. pe Proinversion - Energy Projects Av. Enrique Canaval Moreyra N° 150, Piso 8 Lima 27, Peru Ing. Anibal del Aguila Head of Energy Projects T: (+511) 2001200, extension 1340 F: (+511) 6121210 E: masificacion-gn@proinversion. gob. pe E: whuambachano@proinversion. gob. pe Financial Advisor – Macroinvest S. A. General Borgoño 1156 Lima 18, Peru Sr. Roger Espinosa Partner T: (+511) 2039800 F: (+511) 2212696 Sr. Mateo Moreyra Partner T: (+511) 2039888 F: (+511) 2212696 E: rofranes@macroconsult. pe E: mmoreyra@macroconsult. pe 99
APPENDIX: TECHNICAL SUMMARY 1010
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