A private sector consortium is building the 113m high Potrerillos dam on the Mendoza river in western Argentina. When completed, the US$310M rockfill dam will regulate the river, provide irrigation water to the vineyards as well as potable water, and generate 520GWh of electricity each year.

Seventy percent of CEMPPSA, the consortium building the dam is owned by local construction firm Cartellone, with the rest in the hands of Pescarmona, the group in charge of building, operating and maintaining the project for over 25 years. Testing of the power station is expected to start in April 2002.