The Brazilian and Bolivian governments are negotiating over the joint development of a bi-national 3GW hydroelectric power project on Bolivia's side of the Madeira River.

The project is expected to boost the countries’ economic growth and power output, Brazil Mines and Energy Minister Eduardo Braga told financial daily Valor Economico, adding that the plans for a hydroelectric power station ‘make strategic sense’.

The plant will be producing power in 2022 under the timeframe to be decided by the two governments, EFE reported citing Valor.

The plan involves Bolivia to export excess electricity generated from the project to Brazil and use the proceeds to cover its financing cost portion for the project.

Part of a Brazil-funded energy investments package in the border region, the project will be operated under a similar model to that of Itaipu hydroelectric dam, a Brazilian-Paraguay joint venture and the second-largest dam in the world.

Braga said: "The new dam project could enable us to optimize the Jirau and Santo Antonio dams and also more efficiently regularize the flow rates of the Madeira River, thus contributing enormously to both countries’ economies."