Bolivia President Evo Morales has signed a contract with Italian-led consortium Consorcio Hidroelectrico Misicuni for construction of the 120-meter-tall Misicuni Dam multipurpose project in Bolivia's Cochabamba Valley.

In May 16, 2009, ceremonies at Cochabamba, Morales told a local crowd the signing marked fulfillment of a 50-year promise to bring adequate water to the region for irrigation and consumption.

The Misicuni consortium, led with 51 percent ownership by Grandi Lavori Fincosit S.p.A. of Italy, was the sole bidder to respond to a solicitation for the work. The solicitation was confined primarily to companies from Italy, which helped finance the US$84.2 million second phase of the project. (HydroWorld 3/27/09)

The first phase, already completed, involved construction of a tunnel, access roads, and other preliminary work for a cost of US$84 million.

The US$84.2 million second phase is being financed by Bolivia, Italy, regional sources, and the Andean development corporation, Corporacion Andina de Fomento. It includes construction of a 120-meter-tall dam, water conduit, and a potable water treatment plant.

A third stage is planned for an estimated cost of US$200 million. It includes construction of a 120-MW hydroelectric plant and another tunnel to divert water between the Viscachas and Putucuni rivers.

Morales announced the government is negotiating another financing agreement for US$100 million for the hydro plant, which he said would be operating by 2012.

Bolivia national utility Empresa Nacional de Electricidad (Ende) and South Korea's Korea Electric Power Corp. have signed an agreement to build a 120-MW hydro plant as part of Misicuni.