Ing. Jaime H. Luna, CEO- Ocoqa Power Corp. S.A., Av. Benavides 441, 101-b, Miraflores, Lima, Peru, Telephone/Fax: 011-511-444-4603

B -- OCOQA HYDROELECTRIC POWER PROJECT IN PERU POC Evangela Kunene, USTDA, 1621 N. Kent Street, Suite 300, Arlington, VA 22209-2131, Tel: (703) 875-4357, Fax: (703) 875-4009 The Grantee invites submission of qualifications and proposal data (collectively referred to as the "Proposal") from interested U.S. firms which are qualified on the basis of experience and capability to develop a feasibility study for a hydroelectric power project in Peru. The project sponsor is the Ocoqa Power Corporation -- a subsidiary of the Minas Cladelinas Mining Company. Principals of Minas Cladelinas have been mining in the Chilihuay-Chaucalla area in Peru for almost 30 years, and are familiar with the topography, geology, and water resources of the region. The Ocoqa Power Corporation signed a final concession agreement to construct and operate the project with the Peruvian Ministry of Energy and Mines in January 1998. The project involves the construction of a 150 MW hydroelectric power plant and dam on the Ocoqa River. The Ocoqa River basin receives water from the Maran, Contahuasi and Chichas rivers. A preliminary hydrological study was completed which showed the Ocoqa River to have an average annual flow of 85 m3/sec. The dam would be built 1000km below the confluence of the Ocoqa and Chichas Rivers. After construction, the Ocoqa hydroelectric power project will take advantage of the new 700 km long, 190kV (300MW) Campo Armino-Socabaya transmission line that will merge the north and south transmission systems into an interconnected national grid. A new twin circuit, 230 kV transmission line will be constructed from the Ocoqa powerhouse to connect with new Campo Armino-Socabaya line at Aplao about 80 km to the east. The study components include: 1) verifying water availability for power generation, 2) performing optimization studies for final project configuration, 3) defining the geologic, geotechnical, and seismic characteristics of the site and assessing constructibility issues related to the civil structures and tunnel, 4) performing an environmental review, 5) performing a detailed engineering analysis and preparing a preliminary project design, 6) preparing a detailed cost estimate, 7)conducting a detailed economic and financial assessment, and 8) preparing a final report. The U.S. firm selected will be paid in U.S. dollars from a $324,000 grant to the Grantee from the U.S. Trade and Development Agency (TDA). The total cost of the study has been estimated at $405,000. The U.S. Contractor selected to carry out this study will be responsible for paying for the balance -- or $81,000. A detailed Request for Proposals (RFP), which includes requirements for the Proposal, the Terms of Reference, and a background definitional mission report are available from TDA, at 1621 N. Kent Street, Suite 300, Arlington, VA 22209-2131. Requests for the RFP should be faxed to the IRC, TDA at 703-875-4009. In the fax, please include your firm's name, contact person, address, and telephone number. Some firms have found that RFP materials sent by U.S. mail do not reach them in time for preparation of an adequate response. Firms that want TDA to use an overnight delivery service should include the name of the delivery service and your firm's account number in the request for the RFP. Firms that want to send a courier to TDA to retrieve the RFP should allow one hour after faxing the request to TDA before scheduling a pick-up. Please note that no telephone requests for the RFP will be honored. Please check your internal fax verification receipt. Because of the large number of RFP requests, TDA cannot respond to requests for fax verification. Requests for RFPs received before 4:00 PM will be mailed the same day. Requests received after 4:00 PM will be mailed the following day. Please check with your courier and/or mail room before calling TDA. Only U.S. firms and individuals may bid on this TDA financed activity. Interested firms, their subcontractors and employees of all participants must qualify under TDA's nationality requirements as of the due date for submission of qualifications and proposals and, if selected to carry out the TDA-financed activity, must continue to meet such requirements throughout the durationof the TDA-financed activity. All goods and services to be provided by the selected firm shall have their nationality, source and origin in the U.S. or host country. The U.S. firm may use subcontractors from the host country for up to 20 percent of the TDA grant amount. Details of TDA's nationality requirements and mandatory contract clauses are also included in the RFP. Interested U.S. firms should submit their Proposal in English directly to the Grantee by 4:00p.m. local Lima, Peru time, on March 26, 1999 at the above address. Evaluation criteria for the Proposal are included in the RFP. Price will not be a factor in contractor selection, and therefore, cost proposals should NOT be submitted. The Grantee reserves the right to reject any and/or all Proposals. The Grantee also reserves the right to contract with the selected firm for subsequent work related to the project. The Grantee is not bound to pay for any costs associated with the preparation and submission of Proposals. Posted 02/08/99 (I-SN296126). (0039)

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