Work wraps up on Olmos water transfer tunnel

Tuesday, December 20, 2011

Construction of the water transport component of Peru's Olmos multipurpose hydro project (PEOT) in Lambayeque region has been completed.

The 19.3km water tunnel will help to irrigate 38,000ha of land, which will be used to produce goods for export and cultivation, said regional commerce and production chamber head Otto Zoeger.

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The project will create significant investment opportunities in the region, especially in agribusiness, state news agency Andina reported Zoeger as saying.

Work on project's water transport component was relaunched in October, after it was suspended in June by consortium Trasvase Olmos (CTO), which claimed it had incurred extra costs of US$70mn due to frequent high-intensity rockbursts.

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