On March 8th, 2019, Argentine Government Secretariat of Energy's Resolution 81/2019 was published in the Official Gazette (the "Resolution"). The Resolution calls for a national and international public tender to award a contract for the construction of the extra high voltage 500 kV transmission line "ET Río Diamante-Nueva ET Charlone", transformer stations and complementary works for 132 kV. The Resolution also approves the Bidding Terms for the tender.
The purpose of the tender is the construction of a high-voltage line at 500 kV that will connect the transformer station Río Diamante (Mendoza) with a new transformer station that will lower the voltage to 132 kV in Charlone, Province of Buenos Aires. In addition, the Resolution contemplates the construction of five subtransmission lines at 132 kV and other complementary works, together with the operation and maintenance of the new system.
The Bidding Terms include 31 sections and 11 Annexes, and they provide the terms and conditions for the selection of the awardee who will be in charge of the construction of the works and the operation and maintenance of the new transmission system.
The legal relationship with the awardee will be structured as a Public Private Partnership (Contrato de Participación Público Privada, "PPP") that will have a 15-year term and will be split into two stages: a construction stage -that ends with the Commercial Operation Date ("COD")- and an operation and maintenance stage. The awardee must finish the works and obtain COD within 36 months from the date of execution of the PPP Agreement.
The bidders shall offer a single price for the construction, operation and maintenance of the line. Such price shall be paid through the combination of fiduciary notes ("TPIs") for the equivalent of 90% of the whole amount and a monthly fee for the remaining 10%.
The TPIs shall be issued quarterly during the construction stage and in accordance with the status of the investments. The remaining 10% shall be paid monthly as from the COD and during the whole term of the contract.
Potential bidders may submit questions regarding the process up until May 10, 2019. The bid submission deadline is May 27, 2019.
