BRAZILIAN CONSTRUCTION company Norberto Odebrecht has emerged as the sole bidder for the first phase of Peru's Olmos hydroelectric project.

Other companies from Spain, China, Argentina and France were interested in the project but their bids did not meet state investment agency ProInversion’s terms. The agency estimates the first phase of the project, which involves a part of the dam work and the construction of a 15km tunnel through the Andes will cost US$118.5M. The total project is estimated to cost up to US$700M.

Located 780km north of the capital Lima, the project will generate 2400GWh a year in its initial phase and help irrigate 60,000ha of farmland. The central government and the regional government of Lambayeque, where the project is located, will co-finance US$77M of the project costs.