Generator Electra Power also contracted Nishi Electromecanica to conduct repair work at the Abranjo hydroelectric plant.
The company will build an 875MW gas turbine plant in the country's Jalisco state.
The 600km line would connect the isolated Iquitos system in the north of the country to the national grid.
A new study shows that grid congestion facing wind and solar parks on the northern section of Chile's central SIC power grid could be halved by year-end thanks to the 753km, 2x500kV Cardones-Polpaico transmission line.
The decision is reportedly due to a mandate from the Franco-Belgian energy multinational to jettison its coal and oil-fired fleet in favor of cleaner-burning natural gas and renewable plants.