Construction work has started on Peru’s Machu Picchu hydroelectric plant where a three-stage uprating and refurbishment programme is under way which will increase its capacity to 140MW. The rehabilitation of the facility, which was damaged during an avalanche in 1998, is expected to cost US$75M.

Cesel has designed the revamping of Machu Picchu, initially recovering a generating capacity of 75MW, and later on 40MW, and finally adding a 25MW turbine. Cartellone and Cosapi construction companies were awarded the reconstruction works at a cost of US$20M. A tender for the turbines and generating equipment, estimated to cost US$35M, is to be issued soon. The Peruvian government may consider the privatisation of Machu Picchu after the completion of the reconstruction works.