Tres Ríos negotiates construction of 50MW hydro project

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Tuesday, August 24, 2004

Guatemalan-based company Hidroeléctrica Tres Ríos is negotiating with construction companies active in the country to build the US$83mn, 50MW first stage of its Tres Ríos hydro project in Guatemala's San Marcos department.

Feasibility studies for the project have been completed, and environmental and interconnection studies have been completed and approved, Empresa Eléctrica Matamoros director Javier Matamoros told BNamericas.

Guatemalan company Sistequa, Costa Rica's Empresa Eléctrica Matamoros and a French investor own Hidroeléctrica Tres Ríos, which is now negotiating sales contracts for the power.

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"There are various [sales] alternatives and we are analyzing which is the best for the project," he said. Power purchase agreements in Guatemala tend to be 10-15 years long.

The financing process is just beginning and nothing has been defined. "We are in a process of seeking financial resources from various institutions such as [Trinidad & Tobago-based bank] RBTT, [Central American Bank for Economic Integration] Cabei, and the [Inter-American Investment Corporation] IIC," Matamoros said.

The 50MW first stage would generate from three powerhouses, and the 50MW second stage would use two powerhouses. Construction could start in early 2005, and will take approximately two years.