The massive construction of the stream natural gas pipeline is expected to further contribute to the rapid industrialization of regions along southern Peru, the Andean nation's Prime Minister Rene Cornejo has said.
"This large-scale infrastructure project will boost economic growth in the southern highlands of the country by providing cheaper energy to residents and local businesses,” the senior government official noted.
Likewise, Cornejo hailed this massive spending initiative as Peru's biggest energy project for exploring ways to develop the nation's petrochemical industry.
On the other hand, the head of the Peruvian Council of Ministers lauded Proinversion -state-run agency- for having carried out transparent processes to award the concession for this landmark project.
"The entity has a vast experience, knowledge of procedures and works within a legal framework," Cornejo said addressing a press conference on Tuesday.
He added, "We are confident that the procedure has been carried out properly, going through different stages and respecting the rights of the different parties".
The Ollanta Humala administration awarded on Monday a 34-year concession to Brazilian construction giant Odebrecht and Spanish firm Enagas to build and operate a 1,000-kilometer long natural-gas pipeline that will run from central Peru to its more southern regions.
The investment in the infrastructure for the project is estimated at $3.6 billion to $4 billion, ProInversion officials said, adding that with ongoing costs the total amount of the project could rise to $7.3 billion.
The pipeline project, slated to be built within five years, aims to transport gas from the Camisea fields located in the Amazon region to Mollendo on Peru’s southern Pacific Coast.
Along the way, it is designed to pass through Andean towns in Cusco, Apurimac, Puno, Arequipa, Moquegua and Tacna.
(END) NDP/DLG/RMB/LOG
Published: 7/2/2014