Endesa is to launch international tenders for power distribution equipment worth E500 million. The tenders are designed to address the needs of Endesa's distribution networks in six countries that provide service to more than 22.5 million customers.
These tenders, to be awarded several times a year and for periods ranging from three to five years, are aimed at covering the future requirements of the group’s entire distribution network. Bids will be delivered in January 2006.
The process involves contacting new suppliers in Latin America, the US, Portugal and in emerging eastern European and SE Asian countries which have been pre-selected by Endesa as potential awardees of the tenders given that they meet all the prerequisites.
To this end, last October Endesa sent a delegation to visit various manufacturers in China to look for business opportunities through potential alliances with Spanish and Latin American suppliers.
According to Endesa, this new contracting strategy will afford the company economic advantages by adding volume and strengthening its relations with suppliers.
Power distribution companies in Spain, Argentina, Brazil, Chile, Colombia and Peru (which together supply more than 22.5 million customers) will all participate in the operation, which comes on top of the CCGT (combined cycle gas turbine) tenders (being carried out since September this year), where an acquisition of some 20 groups is expected for all Endesa’s business lines.