BACKGROUND
On May 30, 2014, by Supreme Resolution 024 – 2014 – EF was incorporated Quillabamba thermal power plant project to PROINVERSION’S portfolio. Pursuant to Law No. 29970 – Law bailing Energy Security and promotes the development of petrochemical pole in the south of the country.
OBJECTIVE
It´s objective is to design a scheme that promotes the private investment participation for the design, financing, construction, operation and financing a thermal power plant. There are technical, financial and legal requirements (capacity, term, among others) specified in the Bidding Documents that must be met.
The Peruvian government through the Private Investment Promotion Agency – PROINVERSIÓN will call an international public tender for the transfer to the private sector the development of “Quillabamba thermal power plant” project. It comprises the construction of thermal power station with a capacity of 200 MW ( hereinafter the Project) which should be located in the town of Quillabamba, Cuzco.
DESCRIPTION
The project will count with a 200 MW thermo electric power station of simple cycle and with natural gas operation.
• 200 MW (Percentage variation to be defined), which commercial operation will be defined in the Contract
In order to be interconnected to the National Networks (SEIN) it must count, with the following:
• 13.8 kV / 220 kV Electric Substation
• 220 kV transmission line of approximately 35 Km long.
• Extension of the arriving station to the Suriray electric substation .
• Other infrastructure need it for it’s operation.
In addition, it must have the facilities to allow its connection with Southern Peruvian Gas pipeline.
TYPE OF CONCESSION
It will be carried out in the framework of the Legislative Decree N°. 674, through three contracts:
• Invesment commitment: Contract to be subscribed with the Ministry of Energy and Mines.
• Rotating Reserve supply to be subscribed with the Ministry of Energy and Mines.
• Contractual Position Cession for the Natural Gas Supply: to be signed with PROINVERSION
Type of concession: Self sustained
Competition factor: To be defined.
The Investment Commitment term of the Contract will be 20 years, beginning as of the launch of the thermal central commercial operation.
LOCATION
Quillabamba city, Convención province, Region of Cuzco. This town is located 1,050 m.a.s.l.
INFLUENCE AREA
Quillabamba thermal power plant will have as a influence area the region of Cusco.
SHORT LISTING REQUIREMENTS
In order to be considered as a bidder, technical, legal and financial requirements requested in the Bidding Documents must be met. The technical requirement shall allow to prove the experience of the bidder in topics related to the project, the property requirements demanded shall allow to prove that the bidder have economical means in order to carry out such project
ESTIMATED INVESTMENT AMOUNT
An estimated investment amount US$ 180 million
INCENTIVES FOR INVESTORS
The Successful Bidders shall have access to the facilities granted by Peruvian law, such as legal stability agreements, anticipated tax refund among others .
SUPERVISORY ENTITY
Supervisory Agency for Investment in Energy and Mining – OSINERGMIN.
CURRENT STATUS
The call was made on December 19 and 20, 2014.
ESTIMATED AWARD DATE
To be defined