Brazil's Odebrecht could in September begin construction of the 360-MW Chaglla hydro project in Peru, according to wire reports.

In December, Peru's energy and mines ministry and Odebrecht company Generacion Huallaga signed the definitive concession contract to build the plant. Commercial operations could begin in the second half of 2016, the ministry said at the time.

The project will use water from the Huallaga River in Huanuco region. Some reports indicate that Chaglla could have a capacity greater than 360 megawatts once completed.

Recently, France-based utility group GDF Suez announced it will invest about 450 million euros (US$600 million) in Peruvian hydro and thermal power plants after winning a power supply contract in Peru.

GDF Suez’s Enersur S.A. unit was awarded a long-term contract to supply 662 megawatts of power in an auction conducted by electricity distribution companies in Peru. The contracts are for electricity supplies for 2013 through 2025.

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