Spain's Union Fenosa and Actividades de Construccion y Servicios have won a concession to build the US$500M Mazar hydroelectric dam in Ecuador.

The project envisions the construction of a dam on the same river as Ecuador’s Paute hydroelectric plant, which generates about half of Ecuador’s electric power.

Ecuador’s Energy Ministry said that the Mazar project would have the potential to generate 180MW, and add another 400Mm3 of storage, making it possible for Paute Hydro Project to produce electricity year round even during dry weather.