Brazilian utility Copel will begin construction of its 19.5-MW Cavernoso II small hydro plant in January 2011, a spokesperson for the firm told wire services.
Copel will invest around 120 million reais (US$70 million) in the project, reports indicate.
The company has already submitted a request for the installation license to be issued by Brazilian environmental regulator Ibama.
Copel won Cavernoso II in the A-3 new power auction that took place in late August. The utility traded the project at a power rate of 146.9 reais/MWh.
Cavernoso II will come online by January 2013.
In other news, Brazilian President Luiz Inacio Lula da Silva recently signed the concession contract for the construction of the 11,200-MW Belo Monte hydropower plant in Brazil's Amazon.
The document kicks off the construction process for the hydro project, which will be built on the Xingu River in the Amazonian state of Para.
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