Govt, Enersur sign Yuncan concession

Peru's government signed on Monday a 30-year concession for the 130MW Yuncan hydroelectric project with Enersur, the local subsidiary of Belgian energy company Tractebel, state investment promotion agency Proinversion said in a statement. Enersur bid a total of US$204.5mn on February 6, which exceeded the base amount by US$4.5mn. According to the contract, Enersur must pay the state government US$57.6mn up front and US$124.5mn in semi-annual usufruct fees during the first 17 years of the contract. Enersur must also pay US$1mn up front to the Pasco region where the plant is located and a further US$6mn once the plant starts operating. In addition, Enersur must pay Pasco US$15.4mn during the first 17 years of the contract in semi-annual payments. Yuncan is currently under construction and will produce about 901GWh a year. Enersur was the only bidder for the project after the other pre-qualifiers, Norway's state power company Statkraft and US-based PSEG, declined to take part in the auction. Total estimated investment in the project is about US$262mn, of which the Japan Bank for International Cooperation (JBIC) is financing 75% and the Peruvian government 25%. State power company Egecen is building the plant but had to stop work in April after the government ran out of cash to finance its 25%. Work restarted in June and the plant is now 70% complete, with operations scheduled to start in July 2005. Enersur currently owns and operates the Ilo 1 and Ilo 2 athermoelectric plants in Peru, with combined installed capacity of 362MW. Peruvian pension fund AFP Integra owns a 21.05% stake in Enersur.