THE EXPANSION PLAN OF THE CHILEAN NATIONAL TRANSMISSION GRID SYSTEM

DECEMBER 2019

Learn about “The Expansion Plan of the Chilean National Transmission Grid System” that was recently approved (the “Expansion Plan”), the projects included in such Expansion Plan, and the business opportunities that may represent to you and your company.

1.  Background:

1.1 The National Electric Coordinator (the “Coordinator”) which was created back in 2017, in conjunction with the existing National Energy Commission (the “Commission”), sets forth the conditions and direct the processes and remuneration of the energy transmission sector.

1.2 After a process directed by the Coordinator, a third body in the field of energy, the Ministry of Energy (the “Ministry”), determined the energy transportation expansion works that are included in the Expansion Plan, through Exempt Decree 198 of August, 2019 (the “Decree”).

1.3 On November 2019, the Ministry published the “General Administrative Bases, International Public Tender for the Awarding of the Construction of the Extension Works set by Exempt Decree No. 198 of 2019 of the Ministry of Energy”, including a list of transmission facilities, transmission lines and substations to be constructed, as described below.

   2.  Projects included in the Decree:

2.1 Types of projectsThe Expansion Plan includes extension works, referred to the national and zonal transmission systems. Transmission facilities may be regarded as mandatory or conditional, if a condition is required prior to its award to a constructor or the notice to proceed with construction.

2.2 Referential Investment Value:

 a) The national extension worksReferential investment value ranges from USD 1.06 Million to USD 42.22 Million. 

 b) The zonal extension works: Referential investment value ranges from USD 0.4 Million to USD 7.56 Million.

2.3 Operation, maintenance and administration costs (“COMA”): COMA for both national and zonal extension projects, is the equivalent to 1.6% of the referential investment value of the project. 

2.4 Bidding Process: Those interested in participating in the process must acquire the bidding rules  and request their registration in the Participants Registry through the website of the Coordinator  https://www.coordinador.cl/desarrollo/documentos/licitaciones/ampliacion/2019-obras-ampliacion-decreto-n198

2.5 Cost of the bidding rules: USD 1,386.9.

2.6 Total investment projectedTotal investment projected for the extension projects is USD 120 million.

2.7 Contract and Contract Price: Tenders for expansion works under EPC Contract, priced with a lump sum, corresponding to the value awarded in the bid. The successful bidder must receive the investment value based on its financial bid for executing the works. 

Payments will be made during the execution of the works according to the schedules defined, which consider 5 to 7 milestones depending on the magnitude and term of execution of the project. Payment to the awarded bidder is made by the owner of the facilities that are expanded.

The Contract Price does not include VAT that shall be borne by the owner.

Finally, below you will find a link to a brochure published by the Coordinator, where you can find further data regarding the new and expansion works projected for 2020-2024 (pages 18-35).

 https://www.coordinador.cl/wp-content/uploads/2019/03/Brochure_plan_expansion_m.pdf

Expand to view activities and dates of the bidding process
Activity Date
Call for Public and International Bidding
November 11, 2019
Publication of General Technical Specification and Particular Technical Specification Until November 29, 2019
Acquisition of bidding rules From November 11, 2019 to March 6, 2020
Field visits From December 16, 2019 to January 17, 2020
Consultation Period of Bidders From November 11, 2019 to January 20, 2020
Period of Responses to Consultations (during which the Coordinator may issue Clarification Circulars and/or Series of Questions and Answers) From December 10, 2019 to February 17, 2020
Maximum period to make rectifications, amendments, additions or Clarifications to the bidding rules Until February 19, 2020
Start of Receipt of Proposals, including presentation of physical documents in the Bidding Address
April 14, 2020
Closing of Receipt of Proposals, including presentation of physical documents in the Bidding Address
April 16, 2020
Opening of Administrative and Technical Offers
April 20, 2020
Evaluation of Administrative and Technical Offers From April 21, 2020 to June 26, 2020
Opening of the Economic Offers
June 30, 2020
Delivery of Affidavit of unconditional acceptance of adjusting to the Maximum Offer Value set by the Commission, when applicable. From July 1, 2020 to July 6, 2020
Award
July 10, 2020

Should you have any doubts or comments on the above, or need further details of the bidding process of a particular project, please contact:

Federico Rodriguez
frodríguez@baraona.cl
+562 2485 10

Andres Maldini
amaldini@baraona.cl +562 2485 10

or Jorge Echeverría
jecheverria@baraona.cl +562 2485 10

Baraona Marshall & Cia
Costanera Sur 2730 Piso 12
7550692, Las Condes, Santiago

www.baraona.cl