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Bolivia's environment and water ministry (MMAyA) is due to launch a tender in early 2012 to build a dam in La Paz department's Alto Hampaturi sector.
The project will cost some US$29.4mn, with financing from Latin American development bank CAF, local daily Cambio reported MMAyA engineer Marcial Berdeja as saying.
Of the total cost, US$14mn will be used to build the dam and US$6.4mn to build the Chuquiaguillo potable water treatment plant. Another US$6.5mn will be used to install potable water pipelines and distribution networks, and US$2.5mn will go towards overhauling nearby potable water and sewerage systems.
The dam will be located 16km from capital La Paz and have capacity to store 6Mm3. Most of the water will come from the Hampaturi basin and nearby lagoons, the report said.
Alto Hampaturi will be the sixth dam to supply water to La Paz and neighboring El Alto. The other five, Hampaturi, Incachaca, Ajuankhota, Milluni, and Tuni Condoriri, already store 30% of the area's water reserves, ruling out any threat of a water shortage in the two cities, according to Berdeja.