Nicaragua’s Ministerio de Energias y Minas has signed a letter of intent with Brazil national utility Centrais Eletricas Brasileiras S/A (Eletrobras) to develop the 160-MW Tumarin hydroelectric project in Nicaragua.
Business News Americas reported Centrales Hidroelectricas de Centroamerica, a unit of Brazilian construction company Queiroz Galvao, also signed the agreement.
The US$350 million Tumarin is to be built in the Grande de Matagalpa River Basin in Nicaragua’s south Atlantic autonomous region, Region Autonoma Atlantico Sur. Upon approval of Nicaragua’s national assembly, construction could begin in early 2009, with completion in 2012.
Eletrobras is to finance the project under a build-operate-transfer contract in which Nicaragua is to have a 10 percent share. When the investors have recovered their investment in 20 to 30 years, the project is to be turned over to the government.