Italy to provide US$27mn for Misicuni project

The Italian government has agreed to provide US$27mn in financing to complete the Misicuni dam project following meetings in Bolivia at the end of May, Bolivia's basic services under-secretary, José Barragán, was quoted as saying in Los Tiempos. An additional US$10mn will be provided by the Andean Development Corporation to complete the second stage of the project that will increase the height of the dam to 86m. This part of the project will begin in the third quarter of 2005 according to Barragán. In addition to increasing the supply of potable water, the second stage will allow the generation of electricity, depending on market conditions and the concessionaire that will develop this part of the project. Building an 86m-high dam requires expenditure of US$38mn and building a 105m-high dam requires US$60mn, according to the newspaper. Italian-Bolivian consortium Astaldi-ICE is currently lining a tunel as part of first stage works that will transport water from the dam to the city of Cochabamba. A water treatment plant is also under construction.