M-Proansa consortium wins Peru – Ecuador interconnection

20 November 2003 – Peruvian transmission company REP has awarded a contract to build the first stage of a $139m transmission line linking Peru and Ecuador to a consortium of Colombia’s Electrica de Medellin (EM) and Peru’s Proansa, according to a REP spokesperson.

A Business News Americas report said that EM-Proansa won groups I, IV and V of the tender, which are for the steelwork, insulators, fittings, construction and installation of the line. Procables won group II to provide the main cables while GHF Representaciones won group III to provide fibre optic cables.

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.

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 Peru’s Cesel in early August, and a contract for expanding the Zorritos substation to Germany’s Siemens in September. Siemens is scheduled to finish work in August 2004.

REP and Ecuador’s state transmission company Transelectric will split first stage construction costs, 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 per cent), ISA subsidiary Transelca (30 per cent) and Bogota’s municipally-owned power company EEB (40 per cent).