Peru's government awarded Monday a contract to build a natural gas pipeline concession to Gasoducto Sur Peruano consortium, the Andean nation's Investment promotion agency Proinversion has announced.
The large-scale infrastructure project will require a investment ranging from US$ 3.6 billion to US$ 4 billion from the winning consoritum, which is made up of Brazil-based construction giant Odebrecht and Spanish gas grid operator.
The construction works of Peru's long-awaited energy project titled "Improvement of Energy Security and Development of the South Peruvian Pipeline" is expected to generate more than 5,000 direct jobs.
According to the state-run agency, the project will charge US$7.328 billion for the services provided under this concession agreement of the construction-sharing contract.
After dismissing the technical proposal (envelope 2) submitted by the Gasoducto Peruano del Sur consortium (comprising companies GDF Suez, Sempra, Techint and TGI), Proinversion rejected the economic proposal without opening envelope 3.
The South Peruvian Pipeline (SPP) project involves the design, financing, construction, operation, maintenance and transfer of the Peruvian State Transportation System of Natural Gas with a length over than 1,000 km, in three sections.
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Published: 6/30/2014