Ecuadorian Government Launches Tender for Electrical Interconnection with Peru

Through Press Bulletin No. 70 dated September 2, 2024, the Ecuadorian government, through the Ministry of Energy and Mines (“MEM”) and the Ecuadorian Electricity Corporation (“CELEC EP”), announced an international public tender for the development of several projects involving the construction of civil works, supply of materials, equipment, electromechanical assembly, testing, and commissioning of the 500-kilovolt (kV) Electric Interconnection System between Peru and Ecuador (the “Project”).

The tender is divided into two blocks:

• Lot 1: The Pasaje Substation at 500/230 Kv and the expansion of the Chorrillos Substation at 500 Kv, with a reference value of approximately USD 80 million.
• Lot 2: The Chorrillos – Pasaje Transmission Line at 500 Kv (206.97 km), the Pasaje – Border Transmission Line (500 Kv) spanning 77.88 km, and the sectioning of the Minas San Francisco – San Ildefonso Transmission Line at 230 Kv, with a reference value of USD 184 million.

All civil works, material supply, equipment, electromechanical assembly, testing, and commissioning of the Electric Interconnection System are expected to be completed by April 2026.

According to the schedule established by MEM, all bids must be submitted by Friday, September 22, and will be evaluated by December 2024. Contract signing will take place between January and March 2025. Finally, the Project is expected to begin operations between June and August 2026.

The Project will be financed by international banks and the Ecuadorian state. The Inter-American Development Bank (“IDB”) will finance 43%, and the European Investment Bank (“EIB”) will cover another 43%. The remaining 14% will be financed by CELEC EP. The Project already has the Environmental License, granted by the Ministry of the Environment, Water, and Ecological Transition (“MAATE”), a document necessary for obtaining financing and executing the required works.

This Project is part of the Master Electricity Plan, which considers international interconnection as a mechanism for energy exchange based on commercial agreements and regulatory frameworks for regional integration.