With a temporary hydroelectric concession permit in hand allowing to study the feasibility of building a hydroelectric plant using the hydrological resources of the Pelagatos and Plata rivers, Hidropesac, a JV between Malaga and its Swiss partner EPD, studied and analyzed several options ranging from the installation of 19MW to 28MW hydro power plants.

The current studies show that all the options combining the hydrological resources from the two rivers are both technically feasible and financially profitable. According to a preliminary report, the installation of a 28MW hydro power plant is the best option with a power generation potential of between 113GWh to 141GWh per year and the highest internal rate of return.

The complete feasibility study detailing the economic parameters and financial requirements is expected to be finalized in the Fall of 2010.

Hidropesac will then carry out the environmental and archeological studies required by the Peruvian authorities in order to obtain the permanent hydroelectrical concession. Agreements with regional governmental bodies and local communities will be concluded with the objective to start construction in 2011.