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The Dominican Republic's senate has approved a US$354mn contract with Brazilian firm Andrade Gutierrez for works on the Monte Grande reservoir and Sabana Yegua dam, paper Hoy reported.
The project, located on the Yaque del Sur river, will allow the irrigation of 700,000 plots of land in Barahona, Baoruco, Independencia and Elias Piña provinces.
The project includes a hydroelectric facility that will have 7.8MW capacity and generate 68.6GWh/y.
Andrade Gutierrez is building the dam in partnership with local firm Servinca Ingenieros y Arquitectos. Work began in July 2010, and national water authority Indrhi is supervising construction.
The Monte Grande dam will control floods on the Yaque del Sur river and benefit the country's southwest region, where the government is prioritizing regional development and poverty mitigation projects.
The project also includes carrying out rehabilitation works on the Sabana Yegua reservoir, also in Azua province.