Energía Argentina S.A. (ENARSA) has issued a public request for proposals (RFP) seeking international bids for electricity generation from renewable energy sources. The request is issued in response to Argentina’s legislative commitment (Law No. 26,190) to have at least 8 percent of its energy generation capacity produced from renewable energy sources by the year 2016. In the current bid, ENARSA is offering the following capacity to be contracted with private parties.

Foreign companies may submit bids as long as the entity presenting the bid (and any affiliated entity that is jointly and severally liable for the bidding entity): 1) registers as a branch office according to Article 118 of Law No. 19,550; 2) delivers a Certificate of Good Standing duly legalized via an Apostille under the Hague Convention; and 3) complies with Law No. 25,551 which requires any non-Argentina-based entity to associate with a local entity to provide electricity generation services in accordance with Law No. 18,875. Consortiums may also respond to the bid.

The RFP has technical, financial and legal requirements. The following is a brief summary of some of these requirements:

  • Electricity may be offered in blocks of no less than 1 MW and no more than 50 MW.
  • In their responses to the bid, bidders must address the selection and availability of the site of the new generation facility, the preparation of basic and detailed engineering of the facility, the supply of all basic required services and utilities, including water, electricity, sewage, access, communication, security, flood prevention, and any other work necessary to mitigate any environmental impact of the installations as well as other specific requirements depending on the source of renewable energy used for the generation of electricity.
  • Bidders must comply with national content standards under the "Buy Argentina" provisions (Régimen de Compre Trabajo Argentino) for material and equipment used in the proposed project.
  • Bidders must take into account regulations issued by the Argentine Energy Ministry (Secretaría de Energía) as well as any interconnection, transportation and distribution issues that may arise in connection with the Argentine Interconnection System (SADI), with the understanding that all interconnection charges and any additional transportation or adjustment to existing installations shall be the responsibility of the successful bidder.
  • Each submitted bid must provide a fixed price on the basis of supplied energy and not reserved capacity.
  • Prices in each submitted bid must account for all the administrative costs for insurance, guaranties, taxes as well as construction and operation costs such as:
    • Transportation, installation, maintenance, direct and indirect costs of the construction of the project;
    • Any operation and maintenance costs for generation units;
    • Costs for fuel;
    • Costs for interconnection to existing installations; and
    • Costs derived from compliance with permits and other regulations.
  • A bid bond of $100,000 Argentine pesos (approximately US$26,305) per Mw and a performance bond of 5 percent of the contract price to be reduced by 50 percent at the moment of execution of the contract are required.

The deadline for presenting proposals is August 26, 2009.