ISA enters local transmission market with tender win

Tuesday, October 2, 2012

Colombian state-owned firm ISA is entering Chile's transmission sector after winning a tender for three projects on the latter country's central SIC grid.

The tender - held by grid regulator CDEC-SIC - entails designing, building and operating three 500kV transmission lines, totaling 743km, as well as four substations.

The lines will run from Polpaico, just north of capital Santiago, to the Cardones substation in northern region III.

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ISA submitted the lowest bid at US$62.7mn/y to operate the three lines. Other participants in the tender included Spanish firms Elecnor and Abengoa, Bogotá-based EEB, and Brazilian holding Alupar Investimento.

The projects will make the company the second largest transmission firm in Chile, ISA said in a release announcing the wins on Monday (Oct 1).

In Chile, ISA already operates in the highway concession and telecoms sectors.

CDEC-SIC also tendered a 500kV line linking the Charrúa and Ancoa substation in the country's central-southern region.

Elecnor presented the lowest offer at US$16.9mn/y, according to the regulator's website. ISA was the only other bidder, as Alupar did not meet technical requirements.

Both tenders were declared void earlier this year, after CDEC found that the offers submitted did not comply with basic requirements stipulated by the bidding rules.