Empresa de Generacion Electrica Machupicchu S.A. (Egemsa) has awarded a contract to Grana y Montero of Peru to rehabilitate and expand the 107-MW Machu Picchu hydroelectric project in Peru’s Cusco Region to 206 MW.
Despite a reference value for the work of US$135.1 million, Grana y Montero, the sole bidder, offered a bid of US$148 million. (HNN 7/9/08) The Egemsa board assessed the proposal and agreed to the additional US$13 million, development fund Fonafe said.
Egemsa General Manager Jorge Angulo said the contract would be signed within 10 days and an implementation schedule established. The construction of the second phase of Machu Picchu is expected to require three years.
Grana y Montero has 30 months to construct the second phase of the power plant, which includes three months of pilot operation.
Rehabilitation of Machu Picchu is required due to flood damage in February 1998. Egemsa initiated rehabilitation work with its own personnel and financial resources.