Chilectra Initiates Second International Electricity Bid

SANTIAGO, Chile, September 26 /PRNewswire/ --

    
    -  New call for bids is being issued jointly with Electrica de Puente
       Alto Ltda., Electrica Municipal de Til Til, Electrica de Colina Ltda.
       and Luz Andes Ltda., and involves around 78,000 GWh, which amounts to
       a transaction worth more than US$3.9 billion.
    -  As part of the process, the companies inviting bids conducted a road
       show in New York and Paris, attended by executives from major energy
       companies and investment fund representatives. The Chilean delegation
       was accompanied by government officials led by Chilean President
       Michelle Bachelet
    -  This megabidding process seeks to assure Chile's energy supplies
       for the 2010-2024 period and involves a total of 300,000 GWh, worth
       US$10 billion.

Chilectra, Chile's main distributor of electricity, together with Electrica de Puente Alto Ltda., Electrica Municipal de Til Til, Electrica de Colina Ltda. and Luz Andes Ltda., issued a second call for international bids to provide Chile's electricity supply for the 2011-2025 period, within the terms of Law 20.018.

(Logo: http://www.newscom.com/cgi-bin/prnh/20060926/ARTU001LOGO )

This second bid, involving around 78,000 GWh and valued at more than US$3.9 billion, according to current market prices, follows the first round called for in April 2006, seeking to guarantee Chile's electricity supply for the 2010-2024 period, with a total 300,000 Gwh, worth an estimated US$10 billion.

Guillermo Perez del Rio, Manager of Energy Regulation and Management at Chilectra, explains, "Our companies account for the largest consumption in The Metropolitan Region, where 40% of Chile's population is located as well as 45% of the electricity consumption of all distributors in the country. We're confident that with this second call for bids we will continue to make The entry of new generating capacity viable in the Interconnected Central System, ensuring a safe, reliable supply for all our regular clients."

There are three products being put up for bid by Chilectra and its associated companies, all of equal annual energy and different durations (11, 13 and 15 years). Bidders may offer energy and power in one or more of the products put up for bid, and the supply can be partially or totally awarded. The procedure that has been implemented for awarding bids seeks to obtain the lowest final price while providing the total amount of supply required.

Bidding conditions can be acquired by Chilean or foreign corporations, individually, via consortium or association as long as they have a risk classification greater than or equal to B in the last 12 months or fulfill the specifications in the bidding conditions.

Bidding conditions are available at http://www.licitacion.cl , and also At Chilectra's office, located at Santa Rosa 76, 8th floor, Santiago, from 9:00 a.m. to 3:00 p.m., at a cost of US$5,000.

The deadline for submission of bids is Tuesday, July 3, 2007.

    
    Contact:
    Gloria Salgado Rubilar
    Manager External PR
    Phone: +56-2-675-2000
    Web site:  http://www.chilectra.cl
               http://www.licitacion.cl

Gloria Salgado Rubilar, Manager External PR, Chilectra, +56-2-675-2000