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The first stone of the 100MW, US$264mn Patuca III hydro project in Honduras will be laid in October 2009, state power company Enee reported.
Patuca III - also known as Piedras Amarillas - will be built in Olancho department between the municipalities of Catacamas and Patuca some 5km from where the Guayape and Guayambre rivers merge.
Project land is being legalized through the national agrarian institute (INA) to determine indemnity amounts.
Taiwan Power will build the plant under a 25-year BOT contract as part of an MOU signed between China and Honduras in 2006.
Patuca III will boast a 57m-high dam and two Kaplan turbines, which will supply power to the Juticalpa substation via a 42km transmission line. Construction will take five years.