LA PAZ Ė Boliviaís government has awarded Spainís Corsan-Corviam a contract to build a $397.9 million hydroelectric plant in the western province of La Paz.
Representatives of Bolivian state-owned power utility ENDE and Corsan-Corviam, a unit of Madrid-based construction group Isolux Corsan, signed the contract Thursday at a ceremony in La Paz that was attended by President Evo Morales and other national and regional authorities.
The Miguillas dam project will be Corsan-Corviamís first in the Andean nation, where other Spanish engineering companies are carrying out projects for the Bolivian government in the natural gas and solar energy sectors.
The dam will have two hydroelectric subsystems and a 200 MW generating capacity, ENDE chief Arturo Iporre.
The Bolivian utility secured a loan from the Central Bank of Bolivia for the project, which is to take four and a half years to complete.
Rules are currently being drawn up for a separate auction of rights to build a transmission line that will connect the dam to the national grid, a project that will have an investment cost of $27 million, Iporre said.
ENDE said in June that Miguillas will account for 14 percent of the gridís 1.45 GW capacity when it comes online.
Morales said, for his part, that this hydroelectric plant and other electricity projects will guarantee sufficient power supplies for Bolivian industry.
The leftist president added that this project marks the first time the government is building a hydroelectric power station in La Paz, noting that the others in that province were carried out by Canadian and U.S. multinationals.