The scope of the contract includes engineering and constructing the plant as well as providing operations and maintenance services for 20 years.

Under an operational leasing agreement, Uruguayan state-owned company Usinas y Trasmisiones Electricas will generate revenues of $500m by the end of the 20-year maintenance period.

Abengoa, which will contribute $6m in equity to the project’s total investment of $165m, will begin construction of the project in early 2014 and complete in around 14 months as required by the contract.

The project will generate enough electricity to power around 100,000 people and curb carbon dioxide emissions of around 140,000 tons annually.