Peru's energy and mines ministry (MEM) has signed the concession contract for Montalvo-Los Héroes 220 kV transmission line.

Spain's Red Eléctrica Internacional announced in Decemebr it had been awarded the concession contract for the Montalvo-Los Héroes 220 kV transmission line in Peru.

The award of the concession contract, which includes the construction of the new 220 kV line (with a length of 129 km) and the enlargement of the Montalvo and Los Héroes substations, will enable the electricity supply in the area of ​​Tacna in the south of Peru to be consolidated.

Red Eléctrica will be responsible for the design, financing, construction, operation and maintenance of the facilities for a period of 30 years, in addition to a construction period of 33 months. The investment in this project, whose commissioning is scheduled for 2019, is estimated at US$20.2 million.

Red Eléctrica offered an annual cost of US$3,130,061 to recover the investment and O&M of the project. This was 51% lower than expected by the Government. The company beat out competition from Conelsur S.A.C., which offered US$ 6,127,633 and EDEMSA Sur, which offered US$ 6,175,713.

This project strengthens the transmission system in the area of ​​Peru near the border with Chile, which is an important step for the future interconnection of the electricity systems of both countries.