Itaipu Binacional Awards $165 Million Contract to CIE-Elecnor Consortium for 500-Kilovolt Transmission Line in Paraguay

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Researched by Industrial Info Resources (Córdoba, Argentina)--Itaipu Binacional, the bi-national entity between Brazil and Paraguay that owns and operates the 14-gigawatt (GW) Itaipu Hydro Power Plant, awarded Lot 3 of the 500-kilovolt (kV) transmission line project to a consortium between Consorcio de Ingenieria Electromecanica S.A. (CIE) (Asuncion, Paraguay) and Elecnor Transmissao de Energia S.A. (Sao Paulo, Brazil) on September 23, 2011.

The works awarded include the complete supply and installation of an overhead, 500-kV transmission line that will connect the substation on the right side of the Itaipu Hydro Power Plant (SEMD) and the substation under construction in Villa Hayes, a city 30 kilometers from Asuncion.

CIE-Elecnor Consortium's proposal was $165.7 million, higher than Transminor Abengoa-Intesur Consortium's proposal of $159.22 million, but the evaluation committee decided to declare CIE-Elecnor the winner, since its material supply will be fully produced in the Mercosur area.

According to the bidding schedule, the transmission line should be completed in 14 months.

The project is a key part of Paraguay's development plans, since it will allow the country to double the energy drawn from Itaipu Hydro Power Plant, where the electricity demand increases 100 megawatts (MW) a year and the national transmission network is operating at its maximum nominal capacity.

Last May, Itaipu Binacional awarded a $120 million contract to a consortium formed by ABB Ltda. (San Pablo, Brasil) and CIE for Lots 1 and 2. The first lot includes the construction of a grassroot 500/220/66/23-kV substation in Villa Hayes, while the second lot includes the upgrade and expansion of the 500-kV Margen Derecha substation. For more details, view related May 10, 2011, article - Itaipu Binacional Awards $120 Million Contract to ABB-CIE Consortium for Villa Hayes Substation.

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