The Ministry of Finance of Peru has announced that a new auction would be held in 2017 to award the construction contract for the Gasoducto Sur Peruano gas pipeline project. The construction contract had been awarded to Brazilian engineering company Odebrecht, currently snagged on corruption concerns in Brazil, and Odebrecht exiting the project was set as a condition by banks to provide a US$4.1bn syndicated loan for the US$5bn project. Earlier in November 2016, Odebrecht reached an agreement with Sempra Energy on the sale of its 55% stake in the gas pipeline project.
The Gasoducto Sur Peruano gas pipeline will stretch over 1,080 km from Camisea (Cusco) to a new petrochemical complex to be built in Ilo (Moquegua), near the Chilean border. The consortium planned to invest between US$3.6bn and US$4bn in the construction and will charge US$7.3bn for services offered during the 34-year concession.