Transmission Line Carhuamayo - Carhuaquero

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In November2009, Abengoa [Spain] secured financing to develop the new 220kv Carhuamayo - Carhuaquero Transmission Line. The project entailed the construction of five transmission lines totaling 696.6km connecting the towns of Carhuamayo, Paargsha, Conocoha, Huallanca, Cajamarca, Cerro Corona and Carhuaquero as well as the upgrading of six existing substations and construction of two new substations in Huallanca and Conococha. The project was to be developed under a 30-year BOT contract. Abengoa Transmision Norte SA was formed as the project company and was a subsidiary of Abengoa Peru SA, a subsidiary of Abengoa [Spain]. The project was awarded to Abengoa in February 2008 in an international, competitive tender conducted by Peru’s private investment promotion agency Proinversion. The award was based on a formula which awarded points based on the lowest project costs for construction, operation and maintenance as well the amount of investment using local (Peruvian) goods and services. Five consortia participated in the tender: Abengoa [Spain], Terna Partipacoes de Brasil [Brazil], Interconexion Electrica (ISA) [Colombia], Isonor Transmision [Spain] and Brazilian-Peruvian consortium Transmision del Norte (Transnorte). The contract was signed by Abengoa and Peru’s Ministry of Energy and Mines on May 22, 2008. The total project cost was estimated at US $328.57 million. The project reached financial closure in November 2009 when a financing agreement was signed with commercial banks. Financing comprised US $78.6 million debt and US $250 million equity. The debt was split into a $74.671m 7-year term loan and $3.9m 7-year term loan provided by WestLB AG and BNP Paribas. Construction of the transmission line and associated substations was expected to be completed in November 2010. Commercial operations commenced in December 2011. Project expected to become operational in November 2010.