1. INTERNATIONAL PUBLIC TENDER:
CONCESSION OF 500 kV MANTARO-MONTALVO TRANSMISSION LINE

2. PROJECT PROFILE Sector: power transmission.
Concession to design, finance, build, operate and maintain a transmission line (500 kV, 900 km) and associated substatios between the Central and Southern Peru.
Concession term: 30 years + construction period.
Grantor: State of Peru, represented by the Ministry of Energy and Mines.
Implementing entity: Proinversion.
Tender date : II Q 2013.
Estimated CAPEX: US$ 350 – 400 million (excluding without Value Added Tax).
500 KV Transmission Line Mantaro-Marcona-Socabaya-Montalvo and Associated Substations

3. DESCRIPTION Route Main project components:
Construction of tranmission line between Mantaro-Marcona-Socabaya-Montalvo (500 kV and estimated total distance of 900 km).
Construction of two new substations: Mantaro Nueva 500/220 kV and Socabaya Nueva 500/200 kV.
Expansion of three existing substations Campo Armiño 220 kV, Marcona 500 kV and Montalvo 500 kV Montalvo.
Connections from 500 kV to 220 kV substations, and ancillary works.
The project is the second 500 kV transmission line between Central and Southern Peru, in orden to strengthen the National Interconnected Power System (“SEIN”).
Route

4. FINANCIAL DESCRIPTION
Low -risk activity.
Proinversion has awarded several transmission lines in recent years following a similar contractual structure. Contracts are well-known in the banking system and financial markets.
The concession holder is responsible for financing.
Transmission is a regulated activity and concession holder remuneration is determined in the bidding process.
CAPEX offered is converted into an annuity (30 years, 12% return), plus
Operating and maintenance cost offered.
Very low revenue collection risk.

5. New Demand from Major Mining Projects Southern Peru
DEMAND DRIVERS
Strong and sustained growth: Peru GDP is expected to grow above 6% in the next 3-5 years.
The Central region of Perú will concentrate the highest power generation growth. The Southern region of Peru will have the highest demand growth (associated with large mining projects and expansions in construction, see table below).
The Mantaro-Montalvo line project will enable power transmission between Central and Southern Peru.
The line will connect Marcona (nearby Shougang Hierro Peru iron mine in expansion), Socabaya (nearby Cerro Verde copper mine in expansion) and Montalvo (nearby Quellaveco copper project and Toquepala copper mine in expansion).
New Demand from Major Mining Projects Southern Peru

6. Qualification of Bidders
TENDER PROCESS: TIMETABLE
Current timetable:
Call for tenders
First contract draft
Second contract draft
Qualification of Bidders
Final contract
Tender Date and Award
Closing
2012
I QT
2013
II QT
2013
III QT
2013 6

7. TENDER PROCESS: BIDDER QUALIFICATION
Financial and operational qualification criteria:
Requirements
Financial: Minimum equity ; and
US$ 70 million.
Financial: Minimum total asset; and
US$ 210 million.
Operational: direct operation of electric transmission systems that meet the following conditions:
Length:
More than one thousand kilometers (1 000 Km) in voltages higher or equal to 220 kV.
Transformation capacity:
More than 500 MVA in substations in voltages higher or equal to 220 kV. 7

8. TENDER PROCESS: OFFERS AND AWARD
Competition factor: lower total cost of service.
The total cost of service cost comprises
Annuity of the CAPEX offered (in 30 year period with 12% return).
Annual cost of operation and maintenance offered.
Format for submission of offers:
Number
Amount
CAPEX cost, US$ (*)
Annual cost of O&M, US$
Note:
(*) Global amount. It will be converted into an annuity and added to O&M cost to determine total service cost. 8

9. CONTACT INFORMATION
Public information on Proinversion’s web page:
Proinversion - Energy Projects
Av. Enrique Canaval Moreyra N° 150, Piso 8
Lima 27, Peru
Ing. Anibal del Aguila
Head of Energy Projects
T: (+511) , extension 1340
F: (+511) E: E:
Financial Advisor – Macroinvest S.A.
General Borgoño 1156
Lima 18, Peru
Sr. Roger Espinosa Sr. Mateo Moreyra
Partner Partner
T: (+511) T: (+511)
F: (+511) F: (+511)
E: E: 9

10. APPENDIX: TECHNICAL SUMMARY10