Mexico rejects bids to build 750-MW La Yesca

Mexico has rejected three bids for a contract to build the 750-MW La Yesca hydroelectric project, one of the largest projects launched during outgoing President Vicente Fox’s six-year term.

Comision Federal de Electricidad (CFE) said it would relaunch the international auction for the project shortly, but gave no specific date.

Bids by the consortia led by Mexico’s Ingenieros Civiles Asociados (ICA) and by China’s Sinohydro Corp. were over the ceiling price limit set by the government, CFE said. ICA had bid US$908.7 million and Sinohydro US$1.25 billion.

A bid by a group led by Italy’s Impregilo, for US$805 million, failed to reach technical requirements, the utility said.

CFE requested bids September 28 for civil, electro-mechanical, and associated work. (HNN 10/30/06) To be located on the Santiago River in Jalisco State, La Yesca is to include a 210-meter-tall concrete-faced rockfill dam, a basin of 12 million cubic meters, and an underground powerhouse containing two 375-MW turbine-generators.

Construction is expected to create 10,000 jobs and be completed in 2011.

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