LAGEO tenders eight geothermal wells in Chinameca under 31-month contract

El Salvador's state-owned LAGEO S.A. de C.V. has published tender SV-LAGEO-534011-CW-RFB for integrated drilling services for up to eight geothermal wells at the Chinameca field, with bids due by December 16, 2026 and an estimated 31-month contract.

The process forms part of the Geothermal Energy for the Sustainable and Inclusive Development of El Salvador project, which the World Bank approved in March 2025 with a US$150 million loan over 30 years, including six years of grace. LAGEO, a subsidiary of the Río Lempa Hydroelectric Executive Commission (CEL), envisions a plant of up to 25 MW in Chinameca and exploration work to enable up to 40 MW more in the department of San Miguel. The World Bank's June 2026 supervision mission reported delays against the original schedule and recorded that LAGEO began drilling the CHI-7B reinjection well on June 1 with its own funds and equipment.

According to Piensa Geotermia, the eight wells will be directional, with a 12.25-inch diameter and a 9.5-inch liner, at depths of 1,800 to 2,200 meters measured depth (MD): five production wells and three reinjection wells. The tender requires a US$1.2 million bond and scores 50% technical criteria and 50% cost under the World Bank's September 2023 procurement regulations, with a contract based on the FIDIC Red Book model and no electronic bids allowed. ThinkGeoEnergy confirms the scope. In Mexico, CFE operates the Cerro Prieto, Los Azufres, Los Humeros and Las Tres Vírgenes geothermal fields, the same type of firm baseload resource that El Salvador is seeking to expand.

The next milestone is the opening of the technical envelopes on December 16, 2026 in Santa Tecla. LAGEO is also preparing the specifications for the plant's EPC (engineering, procurement and construction) contract, while the documents for FIDIC supervision of the drilling remain at a preliminary stage. Approval from ETESAL, the state transmission company, for the transmission line and the substation is expected by the end of 2026.

This article was drafted with the assistance of artificial intelligence from verified sources and reviewed by a human editor before publication.