Consortium mulls US$2bn diesel production project

Canadian consortium Alto Petroleum-Eboroil Udmurtia could invest US$2bn to build a diesel production project in Peru, according to consortium director Paul Luna.

The consortium last week signed an agreement with state hydrocarbons promotion agency Perupetro to evaluate non-conventional hydrocarbons resources in area XIL, Brea de Chumpi, between Arequipa and Ayacucho.

The plant alone would cost US$1.2bn to produce 50,000b/d to supply the local market, Peru's state news agency Andina quoted Luna as saying.

"In about eight months we should have the first results to know if the project is feasible or not," he said.

The executive did not rule out partnerships with other companies once the project's feasibility has been defined.

Publication: Business News Americas - English News
Provider: Business News Americas
Date: February 28, 2008

Publication: Business News Americas - English News
Provider: Business News Americas
Date: February 28, 2008


Textil del Valle buys land for later expansion

Textil del Valle, a Peruvian company whose principal clients include Lacoste, Ralph Lauren, Nautica and Tommy Hilfiger, has acquired land measuring 60,000 square metres alongside its plant in Chincha. The aim is to expand production areas such as stitching; many areas are at 95% capacity but expansion will be taken slowly in the light of US economic deceleration and the recent spending of US$5mil by Textil del Valle on modernising production processes ahead of the introduction of the free trade treaty between the US and Peru. Having exported US$39mil-plus in 2007, the firm is looking for double-figures growth in 2008.

Publication: SABI - Business News
Provider: South American Business Information
Date: February 25, 2008


El Platanal hydroelectric power plant to start ops 2009

The Peruvian hydroelectric power plant (HPP) El Platanal will start operation in 2009, the head of the plant's owner Compania Electrica El Platanal (Celepsa), Pedro Lerner, said on February 18, 2008.

It will be the second biggest hydroelectric plant after Central Hidroelectrica de El Mantaro. El Platanal will be located in the provinces of Canete and Yauyos, on the Canete river. The second phase of the project also includes a second hydropower plant in the Morro de Arica region in the distant future.

Investments in El Platanal's construction are estimated at $200 mln (136.77 mln euro).

Celepsa's shareholders are Peruvian cement makers Cementos Lima SA, Cemento Andina SA and local steel producer Corporacion Aceros Arequipa SA.

Publication: Business Digest
Provider: AII Data Processing Ltd.
Date: February 18, 2008


GMD plans USD 3 million investment in data center

GMDs technology solutions division manager Orlando Negrete announced that, Peruvian systems integrator GMD plans to invest nearly USD 3million year mainly to expand its data center with new infrastructure to support the delivery of outsourcing services, GMDs outsourcing services offering is mostly based on its software factory and BPO services, and the main clients are public sector entities, which outsource tax collection and billing, customer support and municipal management.

The services division represented 68% of the GMDs revenues of USD 35.5million, with sales of hardware contributing 20% and software the remaining 12%. Negrete believes the company will generate revenues of USD 37million year. With an eye on further growth, GMDs efforts this year will be concentrated on increasing sales of long-term services contracts, although revenues coming from contracts closed in 2008 will not necessarily be reflected in this years revenues. In the hardware division GMD works with Cisco and HP, while in the software segment the company has alliances with Oracle, Microsoft, Citrix Systems) and CA.

Publication: Euclid Infotech - IT News
Provider: Euclid Infotech
Date: February 14, 2008


UNFCCC registers Cana Brava hydro project as CDM

The UN Framework Convention on Climate Change (UNFCCC) has registered Peruvian generator Duke Energy Egenors Cana Brava hydroelectric project as a clean development mechanism (CDM).

Spanish company Asin Carbono also is participating in the project, which entails building a 5.66MW run-of-river plant 80km east of Chiclayo city in Cajamarca department. The plant will supply Peruvian national grid (SEIN).

The projects CO2 emission reductions are estimated at 21,974t/y. US power company Duke Energy controls Egenor, which operates two hydro and six thermo plants with total effective capacity of roughly 508MW.

Publication: Euclid Infotech - Utilities News
Provider: Euclid Infotech
Date: February 13, 2008


Aceros Arequipa reports sharp sales increase in late-2007

Sales of Peruvian longs producer Aceros Arequipa increased 19% in the fourth quarter of 2007, compared to the same period of 2006. The company’s Q4 shipments came to 161,000 tonnes, boosted by the expansion of the country’s construction sector.

As previously reported by Steel Business Briefing, longs consumption sharply increased in Peru due to reconstruction work after the earthquake that shook the country last August.

According to Arequipa’s report, the company’s revenue last year reached PEN 1.34bn (US$446m), a 14.5% increase over the PEN 1.17bn in 2006 sales.

However, higher operating costs reduced the steelmaker’s net profit from PEN 143m to PEN 107m, in the same comparison. SBB learns that imports to supply the growing demand pressured Arequipa’s operating margins, although the company expanded its own capacity to 530,000 t/year in mid-2007.

Publication: SBB - Steel Business Briefing
Provider: Steel Business Briefing
Date: February 12, 2008


Peru: Government awards Milpo transmission concession

Peruvian government has awarded miner Milpo the definitive concession to develop 59km of transmission lines. The lines will span the Chavin, Grocio Prado and Pueblo Nuevo districts in Chincha province, Ica department. The energy and mines ministrys general power department now is authorized to ink the concession contract with Milpo. The miner this month announced plans to invest USD 150 million this year in exploration and capacity expansions at its Porvenir and Cerro Lindo polymetallic operations.

Publication: Euclid Infotech - Utilities News
Provider: Euclid Infotech
Date: February 9, 2008


ADP to invest USD35 million to upgrade Pisco airport

Consortium Aeropuertos del Peru (ADP) will invest USD35 million to upgrade the countrys Pisco airport. Perus transport and communications ministry (MTC) handed over the administration and operation of the airport to the consortium, comprised of firms GBH and Swissport. The airports improvement project includes the construction of a new passenger terminal and a cargo terminal.

Works are expected to be carried out during 2008 and 2009. Pisco airport is part of a 25-year airport concession package awarded to ADP in 2006. The package also included terminals Tumbes, Talara (both in Piura department), Trujillo (La Libertad), Anta-Huaraz (Ancash), Chachapoyas (Amazonas), Cajamarca, Tarapoto (both in San Martin), Iquitos (Loreto) and Pucallpa (Ucayali). Chiclayo airport in Lambayeque department and one serving the city of Piura are also part of the package but, as in the case of Pisco, they have air-force infrastructure and so transfers to the concessionaire must first be approved by the countrys defense ministry. ADP will invest USD220 million in the 12 airports over 25 years with USD120 million to be spent during the first few years.

Publication: Euclid Infotech - Construction News
Provider: Euclid Infotech
Date: February 8, 2008


Peru: V de V Asociados picks up 150MW hydro concession

Peruvian energy and mines ministry has awarded V de V Asociados a temporary concession for the 150MW El Chorro hydro project. The company, which submitted the request for the temporary concession in December, has two years to carry out project studies. Studies will be carried out in the Macate, Yupán, La Pampa, Huallanca and Yuracmarca districts of Corongo, Huaylas and Santa provinces in Ancash department.

The ministrys general power department will cash in the project deposit if V de V Asociados fails to carry out the work within the two-year timeframe. Of the 2.5TWh generated in December in Peru, 65.9% of power came from hydro, followed by natural gas (29.4%), coal (2.8%) and diesel (1.8%).

Publication: Euclid Infotech - Utilities News
Provider: Euclid Infotech
Date: February 7, 2008

Peruvian Government seeks to award Majes-Siguas II concession by August

Arequipa expects Perus state agency for promoting private investment ProInversión to award the concession of the Majes-Siguas II hydro project by August 15.

Project manager Ronald Arenas will propose the date to ProInversión this week. While the date is supported by Arequipas government, it will also depend on the projects financial advisor, Lima-based Latin Pacific Capital, which is expected to complete studies within 45 days. Once Latin Pacific Capital is finished, ProInversión officials will confirm the deadline to submit technical and financial offers. Authorities could seek to attract more companies to take part in the project as long as the final deadline is kept.

Majes-Siguas II is the second stage of the project which began with construction of the Condoroma dam more than 10 years ago. Second-stage works include building three hydroelectric plants - Tarucani (98MW), Lluta II (116MW) and Lluclla (316MW) - constructing the Angostura dam, and installing water-transport infrastructure and an irrigation network.

Publication: Euclid Infotech - Utilities News
Provider: Euclid Infotech
Date: February 7, 2008


Five groups prequalify for transmission line contract

Peruvian state agency for promoting private investment ProInversion has prequalified five groups for the Mantaro-Cotaruse-Socabaya and Machupicchu-Cotaruse transmission lines concession contract. The potential bidders are Transur (Graña y Montero-Alupar Investimento), ISA, Isonor Transmision Elecnor-Isolux Corsan, Terna Participacoes and Red Electrica Internacional-Cobra-Abengoa. The last group also includes an investment fund administered by AC Capitales Safi. The winner of the 30-year concession will design, finance, build, operate and maintain the lines. Mantaro-Cotaruse-Socabaya would stretch more than 600km and Machupicchu-Cotaruse roughly 204km. The contract includes building related substation works. ProInversion will accept offers on February 26 and aims to award the contract on March 3.

Publication: Euclid Infotech - Construction News
Provider: Euclid Infotech
Date: February 6, 2008


Pizza outlets to increase

Pizza outlets have only achieved 4% Peruvian and 10% Lima (the capital) penetration. These figures have led Corporacion Peruana de Restaurantes, the firm that operates the franchise for Papa John's pizzerias, to decide on investment of US$1mil in 2008 in the construction of five new restaurants, four in Lima and one in either Cusco or Arequipa, explains its director of marketing, Gonzalo Lanata. Papa John's is a ten-store-strong chain at present and it posted a turnover of US$4mil in 2007, up 45% over 2006. Delivery services supply 70% of revenues.

Publication: SABI - Business News
Provider: South American Business Information
Date: January 31, 2008

Goldfields: Cerro Corona to produce by mid 2008

Gold Fields (GFI) announced that production at its Cerro Corona project in Peru is forecast to commence by the middle of 2008 as previously announced. This project will add more than 400,000 high margin ounces per year to their production profile.

During the past quarter mining activities remain focused on generating construction materials for various site structures, in particular the tailing dam, haul roads and run of mine stockpile. Unit mining cost performance, at USD1.72 per ton, was in line with expectations.

During December 2007, Gold Fields announced an increase in the forecast construction capital cost to USD421 million and extension of the completion date, to the middle of the fourth quarter of financial 2008. On the construction front, certain construction contracts and work programs were restructured and re-resourced. So far progress against this program has been satisfactory. Work in two main substations was also significantly advanced. Engineering is now complete, save for field changes.

Publication: Euclid Infotech - Utilities News
Provider: Euclid Infotech
Date: February 3, 2008


Minsur profits jump to US$44.3mn in 2007

Peruvian tin miner Minsur made 131mn soles (US$44.3mn) in net income during 2007 compared to 105mn soles in the previous year on high metal prices, the company reported to securities regulator Conasev.

Minsur's net sales amounted to 476mn soles in 2007 compared to 276mn soles in 2006 while costs rose to 79.6mn soles last year from 61.7mn soles in 2006.

Minsur produces tin concentrates at its smelter and refining operation in Pisco.

The company did not provide tonnage production figures or other operational details in its financial statement.

Publication: Business News Americas - English News
Provider: Business News Americas
Date: February 1, 2008