CFE Awards La Yesca Hydroelectric Project to ICA

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Researched by Industrial Info Resources (Sugar Land, Texas)--Mexican state-owned power company CFE Comision Federal de Electricidad (Federal Electricity Commission) awarded the construction of the 750-megawatt (MW) La Yesca hydroelectric project on the Santiago River in Mexico’s Jalisco and Nayarit states to a consortium composed of the Mexican engineering firm Empresas ICA S.A. de C.V. (NYSE:ICA), Promotora e Inversora (PISA), Peninsular Compania Constructora and Constructora de Proyectos Hidroelectricos, all of them located in Distrito Federal, Mexico.

The international public tender for La Yesca hydroelectric project called for the construction of civil work, electro-mechanical work, associated work, engineering, equipment and materials supply, installation, testing, technical support and associated services. La Yesca, which will be the second tallest dam in the world after China’s Shibuya, includes a reservoir of 12 million cubic meters with a height of 220 meters. The first tender of La Yesca’s construction was declared void by the end of 2006. During La Yesca’s second tender, 17 companies acquired bidding rules: ICA submitted the lowest bid; Promotora de Desarrollo de America Latina (IDEAL) owned by Carlos Slim, made a bid of $808 million; and the consortium composed of the Italian company Impregilo, Argentina’s Techint, Prourbe del Bajio and Proyecto La Yesca submitted a bid worth $856 million, which exceeded the minimum of $833 million. For more information, view August 13, 2007 – Mexico’s CFE Received Tenders for La Yesca Hydroelectric Project.

ICA consortium was awarded the contract, which is to be signed on September 21, 2007. ICA’s bid is $0.72 per MW, 6% cheaper than the one submitted by IDEAL. According to Luis Horcasitas Manjares ICA Construction Director, the company won the tender because it presented better planning for the works and has experience with similar projects. CFE said ICA also has the highest technical score. Construction of La Yesca Hydroelectric project is scheduled to start by the end of September and is to last four years.

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