Italy-Brazil consortium to build Brazil’s 1,087-MW Estreito

CESTE, the consortium developing the 1,087-MW Estreito hydroelectric project, has awarded a 230 million euro (US$326.6 million) contract to Impregilo of Italy and OAS Engenharia of Brazil to build the project’s dam and powerhouse on Brazil’s Tocantins River.

Impregilo said the contract includes a 60-meter-tall, 540-meter-long concrete dam and the power station. Work is expected to be complete in the second half of 2010.

CESTE signed a 155 million real (US$81.3 million) contract in May with engineering firm OAS Engenharia for the first phase of Estreito construction. The first phase included excavation and infrastructure preparation for the powerhouse.

The CESTE consortium includes Suez Brazilian unit Tractebel Energia, Brazilian mining firm Companhia Vale do Rio Doce, U.S. aluminum maker Alcoa, and local construction firm Camargo Correa. It previously awarded a 92 million euro (US$125 million) contract to Alstom Hydro for generators and other equipment. (HNN 7/10/07)

Estreito was one of five hydro projects qualified to sell electricity in the government’s power auction October 16, selling 256 average MW. (HNN 10/12/07) In June, Brazil’s federal court lifted an order that had blocked construction of the project due to allegations it would cause environmental damage to indigenous Indian lands.

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