📋 Tender Overview
Project ID: P174812
Commitment Amount: Us$ 70.00 million
Total Project Cost: Us$ 75.00 million
The proposed Project wouldfinance priority electricity system investments needed to improve the country’s electricity service reliability and quality of service. The proposed Project wouldinclude the following project components: (i) Existing substation strengthening,and transformer replacement and expansion; (ii) sustainable electrification pilot; and (iii) project management and capacity building. The MINEM, through its General Directorate of Rural Electrification (DGER) would be the implementing agency for the project. The DGER’s Directorate of Competitive Funds (DFC) would be the Project implementing unit. The proposed Project components would comprise the following:16.Component 1: Existing substation strengthening and transformer replacement and expansion (US$65 million IBRD, US$5 million GoP).This component would finance priority sub-transmission investments identified by MINEM that would include power transformer replacement, rehabilitation and capacity expansion of existing substations and could include expansion of transmission lines within the existing Right of Ways (ROWs)of the public distribution companies (FONAFE managed). The investments would increase the load capacity of existing substations of the public distribution companies to improve operating conditions and facilitate meeting projected expanded demand in the medium-term to ensure optimal electricity service quality. 17.Component 2: Sustainable electrification pilot (US$ 2.5 million IBRD, US$0.5 million GoP). This component would support a pilot project that would finance one or two mini-grid hybrid systems with renewable energy (i.e. solar, wind) in the Amazon region that would reduce the use of diesel generation to power existing mini-grids or a solar home system (SHS) pilot in the Sierra region. Thepilot would allow for testing asustainable service delivery model for mini-grid or SHS deployment in Peru to help improve the quality of electricity supply and expand access in underservedareas of the jungle andhighlands. 18.Component 3: Project management, technical assistance and capacity building (US$ 2.5 million IBRD, US$0.5 million GoP).This component would support effective Project implementation and management, including: (i) project management unit; (ii) project-related operating costs; (iii) fiduciary and safeguards capacity, and (iv) project monitoring and evaluation activities, and would include citizen engagement activities to engage with beneficiaries in the specific context of the project. In addition, the component would finance activities to enhance the public distribution companies’ capacity to help overcomeimplementation capacitygaps, includingcorporate governance human resourcesmanagement, operational efficiency and technologyinnovation. These activities will be defined during project preparation.
