ProInversion to Call for Camisea Pipeline Bids February

Peru's investment agency ProInversión plans to call for bids in February on a US$300mn secondary pipeline network to transport gas from its Camisea gas project to the central regions of Cusco, Ayacucho, Junín and Ica, ProInversión's project coordinator Luis Ortigas told BNamericas.

The project consists of three pipelines that would connect the four departments to the main Camisea gas pipeline, which currently transports gas from the Amazon region of eastern Peru to Lima.

ProInversión would receive bids in July and award contracts that month, Ortigas said, adding the project could be awarded as a single contract or various contracts depending on the bidders.

Four Colombian companies with experience in distributing gas to small cities have expressed their interest in bidding, Ortigas said.

The project aims to supply gas to Peru's central region with the idea to improve industries' competitiveness through the use of cheaper fuel, and thus create new jobs.

However, ProInversión has postponed calling for bids by about four months because technical and economic studies of alternative pipeline routes have taken longer than expected, Ortigas said. The energy and mines ministry said in a statement on Monday that technical and economic studies for alternative pipeline routes have been completed, but Ortigas says ProInversión is carrying out new studies in Cusco "because we aren't satisfied with the chosen routes," Ortigas said. "Cusco is a difficult region from the cultural point of view, including things such as archeological remains," Ortigas said.

The studies include market conditions, best pipeline routes, necessary investment, environmental studies, and the financial structure. The bidders on the contracts are free to choose their preferred route from the alternatives presented in the studies, Ortigas said.

Transport and distribution concessions would be for 30 years with guaranteed returns for investors.

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