The 270MW project planned in the provinces of Azuay and El Oro will cost a total of $477m, of which $90m has already been invested for initial processes.
The plant, which is expected to be operational by December 2015, will produce 1,290GWh per year, Hydroworld.com reported.
It will also reduce carbon dioxide emissions by nearly 700,000 tons a year.
Meanwhile, the government of Ecuador plans to replace expensive and inefficient thermal power generation by this plant.
