Mexico’s CFE Received Tenders for La Yesca Hydroelectric Project

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Researched by Industrial Info Resources (Sugar Land, Texas) -- Mexico state-owned power company, CFE Comision Federal de Electricidad (Federal Electricity Commission), received three bids for the 750 MW La Yesca hydroelectric project to be located on the Santiago River in Jalisco and Nayarit states, Mexico. The lowest bid of $768 million was submitted by a consortium composed of the Mexican engineering firm CIA (NYSE:ICA), Promotora e Inversora (PISA), Peninsular Compania Constructora and Constructora de Proyectos Hidroelectricos.

CFE is a Mexican company that provides services of generation, transmission and distribution of electrical power services to nearly 80 million citizens. The international public tender for La Yesca hydroelectric project called for the construction of the civil work, electro-mechanical work, associated work, engineering, equipment and materials supply, installation, testing, technical support and all 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 and a dam with a height of 220 meters. The first tender of La Yesca’s construction was declared void by the end of 2006 since two of the offers were overpriced and another one was considered not technically solvent. During the La Yesca’s second tender 17 companies acquired bidding rules, CIA submitted the lowest bid, IDEAL, Promotora del Desarrollo de America Latina owned by Carlos Slim, made a bid of $808 million and the consortium composed of the Italian company Impregilo, the Argentine Techint, Prourbe del Bajío and Proyecto La Yesca submitted a bid worth $856 million, which exceeded the minimum established at 833 million dollars.

Mexico state-owned power company will award the contract to the selected company on September 6, 2007, which is scheduled to be signed on September 21, 2007. Construction startup of La Yesca Hydroelectric plant is to begin by the end of next month and will last four complete years.

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