Chile, neighbors near regional power grid study

SANTIAGO Oct 18 (Reuters) - Chile, Peru, Colombia, Ecuador and Bolivia are conducting a cost-benefit analysis of a possible regional electricity grid and will solicit a feasibility study by December, Chile Energy Minister Marcelo Tokman said on Thursday.

Tokman said the nations have agreed on "terms of reference" and are evaluating how to solicit bids for the study, either through the United Nations Development Program (UNDP) - which supports the project - or through each individual country.

"We are acting as technical secretary for the work we are doing with the UNDP, with Colombia, Ecuador, Peru and ... Bolivia in this study," Tokman told journalists in the Chilean capital Santiago.

"At this point we have agreed completely on the terms of reference and we are working now with the UNDP on the operating issue of how the auction must be done to contract consultants."

Chile is trying to broaden its energy sources to feed its booming economy and the mining industry in the north, which consumes a lot of energy.