The pipeline will also have offtake points for distributing gas to the cities of Quillabamba, Cuzco, Puno, Arequipa, Moquegua, and Tacna. The Gasoducto Andino del Sur (GAS - South Andean Pipeline) will be 1,085km in length, and will represent an investment of $1.35bn. In March, Kuntur applied to the Peruvian government for the concession and five months later announced the signing of an accord with Odebrecht to bring the Brazilian construction company into the consortium. In the last 15 years, Conduit Capital Partners has developed more than 20 projects including gas pipelines, and stations for generating hydroelectric, thermoelectric, and geothermic power, as well as joint power generating projects with Argentina, Brazil, Chile, Colombia, Guatemala, Honduras, Jamaica, Mexico, and Peru. Among its partners in financing the gas pipeline project in southern Peru are the Andean Development Corporation and the US Overseas Private Investment Corporation. Conduit now begins the full development of the project, including the signing of firm off-take contracts, environmental studies, detailed engineering, financial structuring and the incorporation of additional equity participants. Construction is expected to begin in 2010 and the pipeline should be operational by the end of 2012. Conduit's involvement with this project dates back to 2007, when the firm committed the funds to determine whether a pipeline would have economic benefits for the people of Southern Peru. An optimal route was then chosen based on comprehensive preliminary technical and environmental studies. Kuntur presented its application to Peru's Ministry of Energy and Mines in March this year, and the proposal was successfully reviewed by the Ministry and the municipalities through which it would cross. Kuntur is an investment vehicle fully controlled by Latin Power III through its Cayman Islands' subsidiary, Cusco Pipelines. Kuntur presented an application for a 30-year concession to build and operate the GAS on 14 March this year, and the application was formally approved on 7 April. The Peruvian Ministry of Energy and Mines officially announced that Kuntur's application had been approved on 7 July 7, and the contract was awarded on 16 September with an official signing taking on 6 October.


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