AES Fonseca will not Participate in Power Tender

A municipal ordinance in La Union prohibits power plants based on coal or gas meaning that AES will be unable to take part in the tender for 350 MW.

Friday, March 16, 2012

The power generator AES Fonseca will not participate in the bidding for 350 MW for a period of 16 years scheduled for Monday, March 19th due to an ordinance of La Union, which prohibits the construction of power plants based on coal and gas.

In a statement, the project manager, John Davenport, reported that "the current legal conditions governing the municipality of La Union, which has in effect an ordinance prohibiting any construction of power plants based on natural gas or coal" is the reason that they will not be participating in the competition organized by the energy distributor DelSur, reported Elmundo.com.sv.

Ezequiel Milla, the newly elected mayor of La Union, said he wants to study the ordinance in order to make a decision and would like to meet with the Superintendent of Electricity and Telecommunications (Siget) and AES to discuss the issue.



More on this topic

El Salvador : More than $900 million for Natural Gas Plant

November 2013

The consortium Quantum-GLU would be the winner of a long-term contract to supply 335 MW generated from a power plant that would be built by the company.

A statement from the National Energy Board reads:

The electricity distribution company DELSUR has made public the financial bids offered by two companies who submitted documents for the tender for 355 megawatts (MW) of power and associated energy, namely: Asocio Quantum-GLU and AES Fonseca Energía, who on October 1 submitted the information required to participate in the tender for the supply of power for 20 years.

El Salvador: Only Two Companies Bid in 355 MW Tender

October 2013

AES Fonseca Energía LTO de CV and Asocio Quantum-GLU submitted their technical and financial bids in the tender organized by Del Sur.

"The technical bids will immediately be reviewed by the evaluation committee of the distributors, advised by a group of prestigious local consultants who will look at the legal issues, especially technical and financial ones," said the general manager of the Del Sur, Roberto Gonzalez.

Next Energy Procurement in El Salvador

April 2012

The tender for the purchase of 350MW for 15 years has to be repeated after having been declared void on the first occasion, and for the fourth time there will be a competition for the provision of 70MW for 5 years.

The Superintendency of Electricity and Telecommunications (SIGET) must provide new tender condition documents, dealing with the main obstacle in previous contests, limiting bids to suppliers of electricity generated by renewable resources, exclusively gas or coal.

El Salvador: Tender for 350MW Declared Void

March 2012

The process was unable to be completed after the withdrawal of offers from firms with capacity to generate electricity required.

The company DelSur on Monday declared void the tender for the generation of 350 MW, equivalent to one third of the El Salvador’s national demand, which it had planned to contract out for 15 years from 2016.

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