Single Proposal Submitted for Portezuelo del Viento Hydro Project in Argentina, an Industrial Info Market Brief

---

On July 3, the period to submit proposals expired for companies to participate as the engineering, procurement and construction (EPC) contractor for the construction of the 210-megawatt (MW) Portezuelo del Viento Hydro Complex, to be built in the province of Mendoza in central-west Argentina. After several conflicts and difficulties, a single proposal was submitted by Malal Hue, a consortium between local companies IMPSA S.A., Grupo CEOSA and Obras Andinas S.A. and led by China's Synohydro. According to the current tender schedule, in the coming month the proposal will be evaluated, both technically and economically, and awarded in November. Construction is planned to start in early 2021 and to be completed in five years.

With an estimated investment of $1 billion, the Portezuelo del Viento Hydro Complex has been under development since 2006, when the Argentinean president and the governor of Mendoza signed an agreement by which the national government would finance the project that would belong to Mendoza province. Since then, the project completed all planning and permitting processes, but a claim from the neighboring province of La Pampa regarding the use of water halted the project until 2019, when former President Macri ruled in favor of Mendoza. He set a schedule for the transfer of funds to finance the project, and in September started the international tender for the EPC contractor.

Although the initial tender caught the attention of several international companies, discrepancies in the criteria of evaluation; rising local difficulties; and the constant claims from La Pampa province and other provinces that share the water resource caused all bidders but Malal Hue to withdraw. Furthermore, a meeting between national authorities and the provinces involved resulted in an order for the project to reconduct part of the permitting process.