A key 500 kV transmission line in Chile has suffered a delay because Elecnor, the firm that won the bid to build it, failed to comply with the agreed deadlines, according to Noticias Financieras newspaper.

In 2009, the Spanish company won the bid to build the transmission line with the cheapest offer.

The will strengthen the energy supply to Santiago, after it offered put on the table the cheapest offer.

The newspaper reported energy market sources as saying the project will now be delayed by over a year.

According to the agreement reached during the bidding stages, the line was due to be in full operation next year, but the sources believe the earliest it will be ready is 2014.

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