Mexico to launch tender for Baja California link-up

Thursday, December 7, 2017

Mexico's energy ministry is to launch the country's first tender for the financing, installation, maintenance, management and operation of a transmission line linking Baja California state to the national grid.

The tender will be launched in January, including the publication of bidding rules and the contract model. Bidders are invited to present their economic and technical proposals in July, while the winner will be announced in September, the ministry said.

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This will be the first transmission project to be tendered to a private company based on the reformed electricity law and the government's broader national electricity development plan launched in June.

The winner will be selected based on lowest cost offering, as contractual payment to the successful bidder will be included in the subsequent transmission tariff, and will be paid directly by the energy control center Cenace, the ministry said.

Upon contract expiration, all transmission assets will go to the state.

The project includes two converter stations and an approximately 500kV direct current, high-voltage transmission line stretching approximately 1,400km, the largest of its kind in Mexico.

The energy regulatory commission is also drawing up rules for a tender to build a transmission line connecting the southern part of the peninsula, Baja California Sur state, to the national grid. Baja California Sur is poised to lead growth in power demand over the next decade.

Draft bidding rules are available in Spanish here and a prospectus here.