Argentina launches US$60mn Tucumán province transmission tender

Argentina launched a tender for a Tucumán province transmission project that has a budget of 11.8bn pesos (US$62.1mn).

The work falls under a regional grid development plan – comprising 22 batches of projects of 132kV and 220kV – approved last year. 

An associated IDB financing program was announced in July. Key objectives are modernizing and expanding the grid to reduce fossil fuel-fired generation, supporting the addition of renewables capacity and boosting reliability. A US$200mn IDB package, to help finance work in Catamarca, Entre Ríos, Santa Fe and Chubut provinces, has already been greenlit. Argentina will also use revenue from the export of electric power to help bankroll projects.

The Tucumán project involves expanding a 132kV line between El Bracho and Villa Quinteros, and building a new transformer station.

The administrative committee of federal electricity transport trust fund FFTEF is managing the tendering process.

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A tender is also underway for another project under the grid development plan, US$75.8mn Alipiba II. According to local press, the 132kV project will use other sources of financing, not IDB funds.  

A lack of transmission capacity in Argentina, particularly 500kV lines, is seen hampering growth of the renewables sector. Billions of dollars in outlay are needed, according to a report from local wind sector chamber CEA. Private sector players are willing to provide a transmission-financing role in the wind power space, BNamericas was told recently. Any investment decisions would partly hinge on further progress in the sphere of subsidy segmentation and regulatory stability.  

Bids for the Tucumán project are due by May 10, according to a notice in the official gazette. 

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