Field signals were integrated, the Plant SCADA and TELVENT’s PLCs and REIVAX’s voltage and speed regulators for the Yaupi, Malpaso, Cahua and Gallito Ciego HPPs were configured; and functional remote control tests were conducted from the SCADA in Lima.

• Installation of failure logging equipment in compliance with the Regulatory Procedure of COES and OSINERGMIN in Yaupi HPP, transmission lines L-1701, L-1704, L-1702 and substations, such as Oroya Nueva, Carhuamayo, Paragsha I, Paramonga Existente and Cahua.
• Transfer of the condenser bank from the Morococha Antigua substation to the Nueva Morococha substation as part of the project conducted by mining company Chinalco.
• Installation of the electric arc protection in 13.8 kV cells in the Paramonga Existente substation.
• In 2014, the easement clearance of transmission lines was conducted. As of 2014, the percentage required by OSINERGMIN was complied with. The main activities included negotiations with owners and execution of the transmission line variants.
• Overhaul of 138 kV transmission lines L-1101, L-1102 and L-1033. As a result, 11 high-voltage sturctures were replaced.
• Overhaul of transmission line L-6527 span A, including the replacement of the phase conductor, overhead cable and hardware.
• Supply and supply of gas analyzer and temperature meter of 138 kV transformers in the Cahua substation.

Yaupi

• In January, a collapse in the Ushapata channel was manually cleared. Shaping and scaling works were also conducted on the upper slope.
• From January to April, an evaluation of the Malpaso, Huangush Bajo, Altos Machay, Huisca Huisca and Huarahuarco dams was conducted.
• In February, a rockfall on the Jaico channel was cleaned.
• In February, maintenance was conducted on the Lechecocha syphon.
• In March, a segment of the Tingocancha – Jaico road was cleaned.
• In April, gabions were constructed to improve the slope stability for structure E10 of line 2265.
• In April, the sediments in the Manto intake were cleaned and disposed of.
• In May and November, the gates of the Huangush Bajo dam were repaired.
• In May, the access bridge to the Manto intake was repaired.
• In June, the sediments in the Santa Isabel intake were cleaned and disposed of.
• In August, the discharge bed of the Altos Machay dam was cleaned.
• In August, cleaning was performed on the access road up to the communication shed in the Shalipayco hill.
• In November, maintenance was conducted on the heavy machinery in Yaupi HPP.
• In November, construction, remedial and repair activities were conducted in the Huangush Bajo dam.

Malpaso

• In September, staff gauges were installed in the Upamayo dam.
• In October, the Vicco river bed and Chinchaycocha lake bed were cleaned.

Cahua

• In January and March, the landslides on the road due to rains were cleaned.
• In August, maintenance was conducted on the Cahua intake invert.
• In November, maintenance was conducted on the heavy machinery in Cahua HPP.

Gallito Ciego

• No activities were performed.

Pachachaca

• In February and March, the stave pipe was cleaned and repaired.
• In April, the Pachachaca was cleaned and repaired.
• In August, the affected areas in the Pachachaca channel were repaired.

La Oroya

• In January, the channel in chainage 01+000 was rehabilitated due to the falling of large boulders from 80 m in height.
• In February, the scouring on the slope of a segment in the Oroya channel was repaired.
• In May, destructive and non-destructive tests were conducted on the penstock in Oroya HPP.
• In September and October, the bathymetric and topographical survey of the Mantaro river was conducted.
• In October, the Mantaro riverbed was cleaned.

Arcata

• In November, cleaning and maintenance activities were conducted in the channels of San Ignacio and San Antonio HPPs.
• In November, cleaning of the channel and forebay of the Misapuquio HPP was conducted.

Pariac

• In October, sediments in Channel HHP4 were cleaned.
• In October, the perimeter fence of HPP4 and HPP3 was improved.

The handover process aims at ensuring that the Cheves HPP starts operation in an adequate manner, minimizing failures and start-up risks. At the same time, it aims at inserting the Cheves HPP into the operating model of Statkraft Perú S.A., in all aspects, as another plant in the portfolio.

In this sense, a number of activities were identified that were not part of the project construction or were not included in the construction budget when making the investment decision or in subsequent reviews, but that are necessary to ensure the adequate start-up of the Cheves HPP. After reviewing the contractual obligations of the contractors responsible for the project construction, the O&M Agreement and other additional activities, activities included in the sub-projects category were identified. Each sub-project derived into a Project Charter that describes the scope and estimated costs as well as the terms and priority level compared to other sub-projects.

The “Preparedness for the Commercial Operation” process was started in February 2014 with the planning of activities, and on June 10th, 2014, an investment budget for USD 3.8 million was approved in addition to the Cheves Project.

The necessary activities to guarantee the commissioning as well as the handover of the Cheves Project (from the construction to the commercial operation stage) were planned and managed as a top priority project (the same as for the Cheves construction).

PG personnel started mobilization in April 2014. Initially, only 3 people were mobilized, and by December 2014, 22 employees were assigned to the handover process.

In 2014, Statkraft personnel attended the FAT tests of the control system, power transformers, control center and switchboard, and received formal training from Rainpower in Norway, ABB in Switzerland on GIS and Generator Circuit Break, ABB in Peru on Power Transformers, and Cummins in Peru on emergency units. On the other hand, since April 2014, technical personnel are receiving on-the-job training from contractors.

The most important activities included the preparation of the Emergency Response Plan in the event of the breakage of the Checras dam, the Risk and Vulnerability Analysis of the Plant, and the follow-up of the legal compliance matrix for the commercial operation. Additionally, the RCM analysis is under way to identify critical spare parts in addition to those we will receive under the contract.