Mantaro-Socabaya Transmission Line

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In January 1998, ProInversion, the Peruvian privatization agency, granted to Consorcio Transmantaro a 33 year contract to design, build and operate a 750-kilometer, 300 MW transmission line to link Peru's northern and southern electricity grids (Etecen and Etesur respectively). The line was to stretch from the power station in Mantaro (East of Lima), to Socabaya, near Arequipa in southern Peru. The contract was granted through an international competitive tender in which three qualified bidders submitted final bids. Consorcio Transmataro won the contract by offering the lowest construction and operation cost: US$179 million. The other bidders offered US$242.4 million (Italian Enel) and US$243 million (British National Grid Company). The contract with Consorcio Transmataro was signed in Febreary 1998 and construction work began soon. The transmission line became operational in October 2000. Initially Consorcio Transmataro was owned by Canadian Hydro-Quebec (80%) and Peruvian Grana y Montero (5%) while state-owned Etecen held a 15% stake. The latter share was required by the BOT contract. In early 2006, a joint venture between Colombian Interconexion Electrica SA (ISA) and Empresa de Energia de Bogata (EEB) bought Hydro-Quebec and Grana y Montero shares in Consorcio Transmataro. In mid 2006, ProInversion sold Etecen’s 15% stake in the project through a public tender to Consorcio Transmataro for US $17.7 million. By end of 2006, ISA owned 60% of the shares in Consorcio Transmataro and EEB 40%. Update on sponsors in 2006. See filing system None