Bolivian construction firm Ingelec was awarded a contract to build and operate the 115-kV line in November, 2001, and construction began in June last year. To date, Ingelec has invested US$3.5million of the US$25-30million total cost, and built 11.5km of the line, according to Ingelec president Raul Quiroga, quoted by local newpapers. Total demand in the Beni region is around 6MW, and the previous government decided to subsidize the project to the extent of US$120million over 15 years. “It seems the new government [which took office on 15 August last year] decided the subsidy was appalling, and believes there are more benefits from construction of a pipeline,” a local source said.
The new Bolivian government of President Gonzalo Sanchez de Lozada is proposing aggressive plans to boost Bolivia’s domestic consumption of its enormous reserves of gas, estimated at around 52Tcf. Natural gas in Beni department could power a thermoelectric power plant close to consumers, feed domestic consumers, and provide fuel for vehicles. Late last year the country’s electric power regulator turned-down a request from Ingelec for a construction license because it did not present an environmental impact study, according to Jose Salazar, wholesale markets’ director at the power regulator. The company can correct this problem and reapply for a license; however, Salazar agreed that the government appears to have changed direction on the project, adding that if a pipeline was built, the transmission line would almost certainly not be economically viable. The regulator will be analyzing the project and will probably issue a definitive ruling soon, he added.