The dam is being constructed 4.5km south of El Guapo town and will cost a total of US$67.2M, providing potable water to 130,000 residents of the area and a floating population of another 350,000 vacationers.

During heavy rainfall in 1999, the existing dam in the area on the Guapo river suffered serious damage. In 2005, Marn began rebuilding works through the Brazilian-Venezuelan consortium Correia Barsanti and the second phase will begin this June.

Once completed in July 2007, the reservoir created behind the 60m high dam will have a surface area of 600ha and will store a total of 155Mm3 of water.