Itaipu Binacional Awards $120 Million Contract to ABB-CIE Consortium for Villa Hayes Substation

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Researched by Industrial Info Resources Latin America (Sugar Land, Texas)--Itaipu Binacional (Asuncion, Paraguay) has recently awarded a $120 million contract to a consortium formed by ABB Ltda. (Sao Paolo, Brazil) and Consorcio de Ingenieria Electromecanica S.A. (CIE) (Asuncion, Paraguay) for the construction of substations for the new 500-kilovolt (kV) transmission line between Itaipu binational hydropower plant and the city of Villa Hayes, 30 kilometers from Paraguay's capital city.

The award is divided into components known as Lote 1 and Lote 2. The first component includes the construction of the new 500/220/66/23-kV Villa Hayes substation, while the second component includes the expansion of the 500-kV yard of the Margen Derecha substation next to the Itaipu hydropower plant in the city of Hernandarias.

In both cases, Consorcio ABB-CIE will supply all equipment, materials, and civil and electro-mechanical works. ABB Ltda., which holds the majority stake in the consortium, is responsible for supplying the main components, such as transformers, towers and circuits; while CIE's main scope on the project is the electro-mechanical and civil work.

During the next month, Itaipu Binacional expects to release the bidding documents for the third component (Lote 3), which will include the equipment and services needed for the construction of a 350-kilometer, 500-kV overhead transmission line connecting the Villa Hayes substation with the Margen Derecha substation.

The 500-kV transmission project is essential for Paraguay's development plans since the country's transmission system is currently operating near full capacity. This project, with a completion date set for December 2012, will allow the country to double the energy withdrawn from the Itaipu Hydropower Plant.

Itaipu Binacional is a bi-national entity formed by state-owned companies Administracion Nacional de Electricidad (ANDE) (Asuncion, Paraguay) and Centrais Eletricas Brasileiras S.A. (NYSE:EBR) (Eletrobras) (Rio de Janeiro), which owns and operates the Itaipu hydropower plant. The plant is located on the Parana River and is the second-largest hydropower plant in the world, with an installed capacity of 14,000 MW.

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