Peru advances 656-MW Majes-Siguas 2 complex

Peru’s investment agency, ProInversion, could seek bids by the end of 2006 for construction of a portion of the 656-MW Majes-Siguas 2 irrigation and hydroelectric complex, a ProInversion official said.

The agency’s southern region coordinator, Nestor Diaz, told Business News Americas that Peru President Alejandro Toledo approved US$120 million in co-financing for construction of a key part of the project, Angostura Dam. Private investors are to supply the remainder of the US$280 million investment in the dam, near the confluence of the Hornillos and Apurimac rivers.

Majes-Siguas 2 is the second stage of the Majes project, which began with construction a decade ago of Condoroma Dam, which now provides water to irrigate 15,000 hectares, BNamericas said.

Majes-Siguas 2 has three components, construction of Angostura Dam and a 16-kilometer water tunnel, irrigation infrastructure to supply 42,000 hectares, and construction of the 274-MW Lluta and 382-MW Lluclla hydroelectric plants on the Siguas River. The power plants are to require a US$500 million investment, ProInversion Executive Director Rene Cornejo Diaz told the newspaper Gestion.

ProInversion plans to complete preliminary studies and establish a financing framework in the next six months that could allow a request for construction bids for Angostura by the end of the year, Diaz said.

For information, contact ProInversion, Executive Director Rene Cornejo Diaz, Paseo de la Republica No. 3361, Piso 9, Lima 27 Peru; (51) 1-6121200; Fax: (51) 1-2212941; E-mail: rcornejo@proinversion.gob.pe; Internet: www.proinversion.gob.pe.

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