Interconexion Rincon Santa Maria-Rodriguez North

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In June 2006, the Argentine federal government signed an 82 year contract for the construction, operation and maintenance of the 500/132kv Interconexion Rincon Santa Maria-Rodriguez North with LIMSA SA. Interconexion Rincon Santa Maria-Rodriguez was designed as a 920km transmission line connecting the Hydroelectric plant Yacyreta to the province of Buenos Aires. The northern section was to run approximately 672km from the Hydroelectric plant Yacyreta in Corrientes province to a substation in Colonia Elia. Interconexion Rincon Santa Maria-Rodriguez South was part of a federal plan to increase the capacity of the high voltage (500k) transmission network and integrate energy supply and demand throughout Argentina. The project was granted to LIMSA SA through a public competitive tender. The main bidding criterion was the lowest present value of payments during the period of operation and maintenance. LIMSA SA won the tender by presenting the lowest present value. LIMSA SA was a company owned by Argentine Electroingenieria SA y Gerardo Ferreyra. The cost of the transmission line was estimated by LIMSA SA at approximately US $239.34 million. LIMSA SA provided its own financing and by December 2006, 25% of construction was completed. The line was expected to become operational in January 2008. In the project contract, the federal government agreed to pay to LIMSA SA: (1) a monthly fee during the construction period of 20 months and another monthly fee for the first 15 years of the line operation. Both fees were defined based on LIMSA SA’s winning bid. The divested Transener SA (project number 55), the owner of technical license of all high voltage lines, was responsible for supervising the line construction while LITSA was responsible entered into a separate service contract with LIMSA SA for the operation and maintenance. The southern section was simultaneously awarded (Project #4154). In June 2008, the project became operational according to Transener SA. Investments in facilities were converted from Argentine Pesos to USD using the period average market rate for 2006 posted by the International Monetary Fund.