Sierra Gorda and Abengoa Sign Two Transmission Line Agreements

13 Jul, 2012

Sierra Gorda SCM and Abengoa Chile S.A have signed two contracts for the construction of transmission lines for the Sierra Gorda mining project in the north of Chile. The first agreement is a BOO agreement (Build Own Operate)  for the construction of a 220 kV double circuit transmission line,  which will span a 160 km distance from Substation Encuentro to Substation Sierra Gorda. The investment in this project will be approximately USD 45 million in the 21 year contract period, and construction will begin by August of this year, pending environmental approvals. The line is estimated to begin operation in August 2013. 

The second transmission line, a 110 kV single circuit line, will supply electricity to pumping substations 1 and 2, which will supply seawater to the Sierra Gorda project, for the same term. The estimated investment is valued at USD 35 million. 

Antonio Ortuzar Jr. and Javier Barroilhet of Baker & McKenzie advised Sierra Gorda in both of the contractual agreements.

 

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