source: latino.faxnews.com, 03.25.2011

Lima –  Peru's Proinversion investment-promotion agency has awarded concessions to build three hydroelectric power stations to domestic and foreign-owned companies.

The winning bidders were Consorcio Generacion Pucara, owned by the Peruvian firms Graña y Montero and Egecusco; Cerro del Aguila S.A., property of Israeli-owned Kallpa Peru; and Empresa de Generacion Huallaga, which belongs to Brazilian engineering and construction giant Odebrecht.

The Energy and Mines Ministry said in a press release that building and operating the three hydroelectric plants will require investment totaling $1.7 billion.

Energy and Mines Minister Pedro Sanchez hailed the awarding of the contracts and said the cumulative hydroelectric capacity of the three projects, 911 MW, is equivalent to 20 percent of the current nationwide demand of 4,500 MW.

He added that of that 911 MW, 544 MW will be used to supply electricity to households, while the rest will go to the private sector, mainly mining companies.

"This is hydroelectric power that provides clean and renewable energy permanently and is a substitute for electricity generated from other sources. None of those are more efficient than hydroelectric power," Sanchez said.

Empresa de Generacion Huallaga won the contract for construction of the Chaglia hydroelectric power station in the central Huanuco region, while Consorcio Generadora Pucara's hydro plant will be located in the southeastern Cuzco region and Cerro del Aguila will build its dam in the southwestern Huancavelica region.

Under the contracts signed with the Peruvian government, the three projects are scheduled to come online in 2016.