Colombia's Isagen SA Awarded Civil Works Contract for Sogamoso Hydropower Plant

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Researched by Industrial Info Resources (Sugar Land, Texas)--On December 16, Isagen S.A. E.S.P. (Medellin, Colombia) awarded a contract worth $492.85 million to Grupo ICT S.A.S.(Bogota, Colombia) for the principal civil works of the 820-megawatt (MW) Sogamoso Hydropower Plant in the state of Santander.

Grupo ICT S.A.S. is a consortium between the Italian Impregilo SpA (BIT:IPG) (Milan), which owns 60% of the Group's equity, and the Colombian companies Tecnica Vial S. en C.A. (Bogota) and Conalvias S.A. (Bogota). This consortium already was in charge of the construction of the diversion tunnels, as well as access tunnels to the underground power house and the spillway, which were performed in August 2009. Now, the Group will be responsible for the construction of the 623.36-foot-high CFRD dam and the rest of the underground works, starting at the beginning of 2010.

In January 2010, Isagen plans to announce the winning company for the biddings for the design, construction and installation of three 273-MW Francis Turbine/Generator sets.

Although Isagen is due to begin the energy provision to the national energy market in December 2014, the Sogamoso Hydro Power Plant is expected to begin commercial operations by November 30, 2013. The total cost of the project is $1.4 billion, and will be financed with the emission of debt bonds (44.5%), a loan from the Corporación Andina de Fomento (11.1%), credits from the Domestic Banking System (33.3%) and credits from Export Credit Agencies (11.1%).

The Sogamoso project is part of Isagen's 2006-14 expansion plan, which includes two diversion projects on the Guarino and Manso Rivers and the 80-MW Chaparral Hydropower Plant on the Amoya River (to be operational by mid-2011) and the Somagoso Hydropower Plant.

Isagen is the third power generator in Colombia, with a total installed capacity of 2.1 gigawatts distributed among five hydropower plants (1,800 MW) and one thermo power plant (300 MW). The National Government owns 57.68% of the capital stock, followed by the national Retirement Pensions Founds Administrators (15.52%), the EPM Empresas Publicas de Medellin (12.95%) and particular stockholders (9.59%).

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