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Paraguayan ANDE signs contract for Lot 1 of Yguaz├║ substation project [free access]

November 4, 2020

Paraguay’s state-owned power company, Administración Nacional de Electricidad (ANDE) has officially signed an agreement the Siemens Energy SAC (Peru) and Rieder & CIA S.A.C.I (Paraguay) consortium for the execution of Lot 1 of the 500 kV Yguazú substation and interconnection project.


Lot 1 of the project was awarded to the Siemens–Rieder consortium at USD67.2 million, in June 2020. Later in August 2020, the Dirección Nacional de Contrataciones Públicas (DNCP) or the Public Directorate had to annul the award due to protests by the Kalpataru Power Transmission Limited (KPTL) consortium. As per reports, KPTL had made an offer that was less than Siemens’ offer, with a difference of more than USD9 million. Post the annulment DNCP had instructed ANDE to re-evaluate the results of Lot 1. As per the latter, the Siemens–Rieder consortium’s bid proposal was 17 per cent less than the cost estimated by the power utility.


The substation project involves two lots. Lot 1 comprises construction of the 500/220/23 kV Yguazú substation and 500 kV, double-circuit transmission line, and adaptation of the existing 220 kV lines on its route. Lot 2 is worth USD35.5 million and has been awarded to Paraguayan Consorcio de Ingeniería Electromecánica (CIE S.A.). It involves the construction of the 52-km-long, 500 kV double-circuit Margen Derecha–Yguazú line; 14.5-km-long, 220 kV double-circuit line on the existing Yguazú–Kilometro 30 line; sectioning of two existing 220 kV lines (approximately 10-km-long), and new 7-km-long, 2x220 kV line from Yguazú substation to the bypass of the 220 kV Acaray–Coronel Oviedo line.


The project is part of ANDE’s “Programa de Fortalecimiento de Transmisión del Sistema Interconectado Nacional y de Distribucion Electrica Rural”, or Programme for Strengthening the Transmission Network of the National Interconnected System and Rural Electrical Distribution, and will be financed through a loan contract between ANDE and the Corporacion Andina de Fomento (CAF), or the Development Bank of Latin America.


The substation project is scheduled to complete by 2023.