Work Begins on Nicaraguan Hydro Powerplant

Construction on a 250-MW hydroelectric powerplant in Nicaragua is slated to begin in November after financing for the $700-million project was lined up through a slate of Brazilian firms and regional organizations.

Earlier this year, a consortium led by Brazil’s state utility Centrais Eletricas Brasileiras (Eletrobras) and Centrales Hidroelectricas de Centroamerica (CHC)—a subsidiary of the Brazilian construction firm Queiroz Galvao—was awarded a 30-year, build-operate-transfer concession for the Tumarin hydroelectric facility on the Rio Grande de Matagalpa River, located northeast of the capital Managua.

When completed in 2014, the 60-meter-high dam will create a 55-sq-kilometer reservoir in Nicaragua’s south Atlantic autonomous region, Region Autonoma Atlantico Sur. The project includes the construction of a 50-km road between Rio Blanco and Mulukuku as well as a 81-km, 230-kv transmission line to connect the plant to the country’s transmission grid.

Financing was obtained through a throng of Brazilian interests. Brazil’s Banco de Fomento will provide $342 million, and the concessionaire agreed to provide another $206 million. The Central American Bank for Economic Integration put up another $252 million for the project.

Nicaragua sought the hydroelectric plant as a means to ease its dependence on oil-fired plants for electricity; currently, about 80% of the country’s electric power comes from oil. Government officials estimate the power from the Tumarin facility will be able to cut the country’s oil bill by $100 million annually.

C.J. Schexnayder is the Editor of ENR California and ENR Northwest. He has contributed to ENR's coverage of the construction industry for more than a decade. His work has focused on major projects, industry trends and emerging technology. He previously was the South America correspondent for the magazine based in Lima, Peru. During that time, he covered numerous large-scale infrastructure projects across the region including the Third Lane Expansion of the Panama Canal. In addition, CJ has been an award-winning newspaper reporter in Southern California, Texas and Louisiana.

Post a comment to this article

Discover innovative construction approaches making it possible to complete ultra-challenging projects like South Fork Wind, the first-ever commercial-scale offshore windfarm and substation in the US. Learn how Kiewit’s ground-breaking approaches address the distinctive demands of offshore construction and other tough environments.