The Network Owner Company (EPR) launched the request for bids to contract the laying and assembly works of the second circuit of the SIEPAC Line (Electrical Interconnection System of the Countries of Central America) in the Agua Caliente–Sandino interconnections, between Honduras and Nicaragua, and La Virgen–Fortuna, between Nicaragua and Costa Rica .
The call for proposals opens a new opportunity to strengthen regional transmission infrastructure at a time when the three markets involved are undergoing expansion, upgrades, or the addition of new generation capacity. Technical and economic proposals may be submitted until September 30, 2026, at 1:00 p.m. Costa Rica time , exclusively online.
The Central American Bank for Economic Integration (CABEI) is providing partial financing for the selection and contracting of construction companies , while the EPR is acting as the implementing agency and responsible for the procedure. The call for bids stems from the General Procurement Notice published on July 24.
Official documentation states that the works comprise the "Laying and Installation of the Second Circuit" in Honduras, Nicaragua, and Costa Rica. This project involves two electrical exchange corridors between countries, and therefore its scope extends beyond the expansion of a national grid.
The EPR was established in Panama and authorized by the Central American governments to design, finance, build, and maintain the first regional interconnection system. It is currently responsible for the development of the second circuit in Agua Caliente–Sandino and La Virgen–Fortuna.
The competition will have an international market focus and will be governed by the CABEI's procurement procedures. Companies may participate individually or through a Joint Venture, Consortium, or Association, enabling joint schemes between companies with complementary technical, financial, and construction capabilities.
The entity indicated that the contractor will be chosen through an “open competition.” Interested companies must register beforehand to access the FILEON system, where the process documents will be available and proposals will be received.
The procedure requires the separate submission of a technical offer and a financial offer , both in PDF format. Each proposal must include a "Declaration of Offer Validity," and submissions after the deadline will not be accepted.
Five lots and technical visits since August
The project is divided into five sections . The EPR has scheduled site visits or pre-qualification meetings for late August and early September, a key step for potential bidders to learn about the corridor conditions before preparing their proposals.
The schedule will begin in Honduras on August 31 , with visits to lots 1 and 2. It will continue in Nicaragua on September 1 for lot 3 and on September 2 for lot 4, while Costa Rica will receive those interested in lot 5 on September 3.
The organization requests advance confirmation of participation in these events. Prior to the visits, a virtual meeting is also planned to explain the participation requirements to registered companies; the date of this meeting will be announced later.
For the construction and transmission sectors, the process presents an opportunity linked to a regionally significant infrastructure. SIEPAC connects Central American electrical systems , so the addition of a second circuit in these sections aligns with the generation expansion plans underway in the countries involved.
In Honduras, the market is awaiting developments regarding a 1,500 MW tender , intended to incorporate new renewable, thermal, and storage capacity. According to additional information provided for this article, the process has been postponed until 2027 amid discussions of a structural reform of the sector.
The proposed transformation seeks to end the single buyer scheme concentrated in the National Electric Energy Company (ENEE) and move towards a market with greater competition, new contracting mechanisms and an Independent System Operator.
The Honduran challenge is also conditioned by transmission restrictions, the financial situation of ENEE and the need for clear regulatory signals , determining factors to attract new investments and obtain competitive prices in future contracting processes.
In this scenario, strengthening regional corridors becomes even more crucial. A significant expansion of renewable generation and storage requires networks capable of transporting production, managing system variations, and leveraging exchanges with neighboring markets when surpluses or deficits exist.
Nicaragua expands generation and Costa Rica discusses an opening
Nicaragua presents a different scenario. According to information submitted for this article with data from the Ministry of Energy and Mines, as of March 2026 it had 1718 MW of installed capacity , of which 838.6 MW corresponded to renewable sources and 879.5 MW to non-renewable technologies.
Although renewables would represent around 49% of installed capacity, their share of generation reached 83% in March 2026 , compared to 25% in 2006. The country's challenge is no longer just about incorporating clean technologies, but about strengthening capacity, reliability and networks.
The renewable energy mix is more diversified than in other markets. The data shows that wind power accounts for 20.36% of generation , followed by biomass at 16.62%, geothermal at 10.15%, hydroelectricity at 6.41%, and solar at 2.58%.
By 2026, approximately 200 MW of additional capacity is projected, through investments estimated between US$165 and US$200 million. The projects mentioned include El Hato, with 67 MW; Enesolar APAS1, with 63 MW; Jaguar 2, with 20 MW; and two other Enesolar developments of 15 MW each.
Infrastructure once again takes center stage: Nicaragua has approximately 3,790 kilometers of transmission lines and 114 substations , while its peak demand reached 893 MW in March 2026, according to the data provided.
Furthermore, electricity coverage would have reached 99.75% , which represents a transition from a stage mainly focused on extending access to one where the challenge is to expand supply, modernize infrastructure and guarantee sufficient capacity to integrate new projects.
In regulatory matters, Nicaragua maintains Law No. 532 for the Promotion of Electricity Generation with Renewable Sources , along with Law 272 of the Electricity Industry and specific regimes for geothermal and hydroelectric resources.
The scheme includes exemptions on machinery and equipment related to renewable energy projects, including batteries, as well as tax benefits and mechanisms for distributed generation. According to the information provided, the country does not yet have a periodic renewable energy auction system comparable to other Central American markets , nor does it have a fully developed regulation of utility-scale energy storage as an independent asset.
Costa Rica is also undergoing a discussion about the future of its electricity system. Background information suggests a reform that includes new auctions, increased competition, and mechanisms to accelerate the integration of renewable energy , along with a significant debate about the evolution of the current model.
In this context, SIEPAC's projects coincide with three markets that, for different reasons, need to strengthen their electrical infrastructure : Honduras facing a future massive contracting of generation and an institutional reform; Nicaragua facing a new cycle of capacity growth; and Costa Rica while debating changes in the rules for expansion of the sector.
The EPR tender, therefore, takes on a dimension that goes beyond the physical installation of conductors and equipment. The agency is seeking companies capable of carrying out work on the "Second Circuit of the SIEPAC Line," an infrastructure that links national systems whose renewable energy growth demands greater transport and exchange capacity.
The documentation states that bids will be accepted “only […] in digital form” and sets September 30 as the deadline for competing for the contracts. Before then, companies must undergo technical site visits for the five lots and complete their formal registration with the EPR.
With this, Central America opens a new front for transmission investment at a time when the expansion of renewables, storage, and new generation is once again placing grids at the center of the agenda. The ability to connect projects, move electricity across borders, and keep pace with increasing demand will be essential for the region's generation plans to materialize.