CTO begins negotiations over Olmos tunneling delay

Thursday, September 1, 2011

Peru's Concesionaria Trasvase Olmos has notified the Lambayeque regional government of controversies regarding the water transport component of the Olmos multipurpose hydro project (PEOT) and the start of a 30-day direct negotiation process.

CTO has been at loggerheads with authorities over cost overruns of the 19.3km water tunnel due to frequent high intensity rockbursts. Tunnel work has been suspended since August 13 with 712m left to be completed, according to PEOT.

The tunnel will move water from the Limón dam completed earlier. The project also envisions a 50MW power component, which will cost US$60mn-80mn.

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