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The plant will be located at the exit points of the Emisor Central and Emisor Oriente drainage tunnels, the latter of which is under construction and due for completion in 2014, the report said.
Works also include the installation of filters to remove garbage from the water and biodigesters to generate methane gas to power the plant.
The treated water will be used by local farmers for irrigation.
The initiative is expected to wrap up at end-2012, with test operations due to begin this year.