Sempra to bid on Peru southern gas pipeline contract

Wednesday, October 4, 2017

Sempra Energy plans to participate in the new call for Peru's southern natural gas pipeline (GSP), according to Mile Cacic, general manager of the country's largest power distributor Luz del Sur, which is controlled by the US company.

"If the government launches a new tender, of course we will participate," the executive said at an energy event in Lima, state news agency Andina reported.

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Authorities have said they plan to launch a new process early next year. BNamericas reported previously that private investment promotion agency ProInversión opened a virtual data room for the GSP project.

Sempra, in partnership with GDF Suez, Techint and TGI, was one of the two groups that submitted offers in 2014 for the contract, which was awarded to a consortium comprising Brazil's Odebrecht and Madrid-based Enagás, and later joined by local group Graña y Montero (GyM).

In January, however, the government revoked the contract after the concessionaire missed a financing deadline as investigators probed corruption allegations surrounding Odebrecht.

"We are going to participate again and we always do it with Techint," Cacic added.


In a related note, GyM's board committee on risk, compliance and sustainability will soon complete an internal investigation that is looking into the company's participation with Odebrecht in several Peru projects, including the gas pipeline.

"To date, the committee has not identified any evidence to conclude that any of the directors, present or past, executives or employees of the company, had any knowledge of, or approved or participated in, any act of corruption or paid bribes to public officials," GyM said in a filing with local securities regulator SMV:

GyM commissioned Simpson Thacher & Bartlett to help carry out the investigation.

During a hearing this week before a congressional commission investigating corruption allegations made against Brazilian construction companies in Peru, former GyM chairman José Alejandro Graña Miró Quesada, said he was invited to the presidential palace by then presidents Alejandro Toledo, Alan García and Ollanta Humala to discuss tenders for some works.

Graña denied having participated in the payment of bribes or having known of these illegal practices, and said that GyM partnered with Odebrecht in 2015 on the recommendation of Enagás to "save" the pipeline project, congress reported. He described joining the consortium as a "bad decision."

Also this week, energy and mining investment regulator Osinergmin published a resolution that establishes the procedure for the refund of money billed to users of electricity, hydrocarbons and natural gas service to help finance the GSP pipeline.