The developers of the 155MW La Higuera hydroelectric project in Chile's Region VI have signed a contract to supply Chilean utility, Chilectra, with a total 6000GWh over 12.5 years.

La Higuera is a 50:50 joint venture formed in May 2004 by Australia’s Pacific Hydro Limited and Norway’s Statkraft Norfund Power Invest (SN Power). The project is located in the Tinguiririca Valley 60km east of the city of San Fernando in Region VI and about 150km south of Santiago.

The contract will help to ensure a stable electricity supply to Chilectra’s non-regulated clients in the SIC central grid system over the long term. La Higuera is set to start operations in October 2008 and generate annually an average of 840GWh. A 38km long transmission line will be built to connect with Chile’s central grid at San Fernando.

A 145MW second stage of the project called La Confluencia is also being considered.