220 Kv MONTALVO LOS HÉROES TRANSMISSION LINE AND ASSOCIATED SUBSTATIONS

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1 International Public Bidding to promote private investment in the CTS project: 220 Kv MONTALVO LOS HÉROES TRANSMISSION LINE AND ASSOCIATED SUBSTATIONS CTS: Complementary Transmission System.

2 CALLED Location: Moquegua y Tacna MOQUEGUA Description: Concession for the design, financing, construction, operation and maintenance of a transmission line of approximately 129 km, with a capacity of 150 MVA; in order to secure the power supply to the city of Tacna and its area of influence due to a possible exit from the current 220 kv Moquegua-Heroes, single stem of the SEIN to the south. Estimated Investment (w/o VAT): US$ 25.7 million TACNA Type of Concession: Self-Sustainable Concession Term: 30 years in addition to the construction period (25 months) Award Date: IV Q. 2

3 PROJECT SUMMARY The main components and project specifications are summarized below: Montalvo-Los Héroes Transmission Line Length: Number of Circuits: Transmission Capacity Conductors per phase: Phase Disposition: Guard Wires: Structures : Sub-stations links: 129 km approx. One 150 MVA One One One OPGW type. Triangular lattice type disposition. Substations SE Montalvo - SE Los Héroes- SE Azángaro Nueva Sub-Stations Extensions Existing SE Montalvo 220 kv SE Los Héroes 220 kv The specifications details can be found in Annex 1 of the Concession Contract. 3

4 CONTEST: COMPETITION FACTOR Competition Factor: Lowest Total Cost of Service The lowest total cost of service will consist of: Annuality investment costs without VAT ("ACI") calculated at the rate of 12% and a period of 30 years. Annual operation and maintenance costs without VAT( COyM ). Format for submission of tenders: In numbers (with two decimals) In letters 1) Investment Cost(US$) * 2) Annual OyM costl (US$) * Note: * Values at the date of Commercial Operation of the Power Line Disaggregated costs of the Electric Line must be displayed on Form 4-A and 4-B Only bids from bidders that present values for the investment cost, operating cost and annual maintenance (COyM), which are equal to or lower than the respective maximum values that Proinversión establishes prior to the date of submission of proposals will be accepted. Additionally, a guarantee for the validity, effectiveness and seriousness of the bid of US $ 1.5 million will be required in the proposal. 4 4

5 CONTEST: QUALIFICATION CRITERIA Investors must go through a qualification process to be considered bidders and present a proposal. The following are the financial and operational criteria: Requisites 1. Financial: Minimum Net Worth Minimum Total Assets US$ 30 million US$ 90 million 2. Technical Direct Operation or have directly operated in the past two (2) years, power transmission systems that meet the following criteria: Length: Transformation capacity: Not shorter thatn two hundred and fifty kilometers (250 km.) with tensions equal or greater than 220 kv. Not less than 250 MVA in sub-stations with tensions equal or greater than 220 kv. 5 5

6 CONTEST: SCHEDULE Key Schedule Dates: Call First Version of the Contract Second Version of the Contract Qualifiacation request Final Version of the Contract Proposals presentation and award Closing II Quarter II Quarter III Quarter IV Quarter IV Quarter I Quarter 2016 PROINVERSIÓN may change the dates on the calendar. If so, it shall be published by notice on the website and sent alongside to the Acquirers up to the pre-qualification stage, and to the Bidders after the same stage. 6 6

7 INFORMATION CONTACTS Power Transmission Project Manager Eng. Aníbal del Águila Acosta Phone (51-1) ext

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