Central Térmica Loma de la Lata ("CTLLL") Expansion Project
On September 2007, Pampa started the expansion works in Loma de la Lata’s installed capacity for 178 MW, through the plant’s conversion into a combined cycle. The project contemplated to increase Loma de la Lata’s capacity by approximately 50% with no additional gas consumption, resulting in increased efficiency for the whole plant.
On February 2011, due to some technical problems detected in the steam turbine unit, which composes part of CTLLL’s installed capacity expansion project, the commissioning of the combined cycle was postponed. In that sense, on March 31, 2011 CTLLL accepted an offer by Isolux Corsan Argentina S.A. and Tecna Estudios y Proyectos de Ingeniería S.A. – Unión Transitoria de Empresas (“UTE”) by which the mechanisms to solve the technical problems were established, as well as the procedures to be followed for the start of commercial operation of CTLLL’s expansion. Additionally, the UTE in its role of contractor granted CTLLL an exceptional discount equivalent to the amounts related to the last milestone payment under the Contracts (Provisional Acceptance), including the adjustments provided under the Construction Contract, for US$18 million.
On November 1, 2011, the Wholesale Electricity Administration Company (“CAMMESA”) granted the commissioning of Central Térmica Loma de la Lata’s expansion works and approved it to start commercial operation in the Wholesale Electricity Market with a capacity of 165 MW. With this commissioning, CTLLL’s combined cycle began its commercial operation.
The project required an estimated investment of US$230 million and the generation will be sold to CAMMESA by means of the agreement signed with said entity under Resolution No. 220/2007 of the Secretary of Energy.
Lastly, we inform that we continue to pursue all of the appropriate claims before the insurance companies and contractors for the damages suffered due to the delays in the completion of the works and in the commissioning of the expansion, among others.
The following table summarizes the current status of Pampa’s expansion projects:
New Capacity (MW)
Total Investment (US$ MM)
Invested as of Sept‘11 (US$ MM)
Loma de la Lata
No additional gas required
(1) Provision warranted by natural gas royalty assignment agreements. (2) Includes the exceptional discount from the UTE for US$18 million, equivalent to the last milestone payment under the Construction Contract.