Hochtief’s hydropower contract

3 December 2010

Hochtief Construction won a EUR 110M (USD 144M) contract to build the Cheves hydroelectric power station in Peru, including 17km of tunnel.

The run-of-river 168 MW hydroelectric power generation plant, along the Churin and Checras rivers, will be approximately 245km north of Lima. With its location in the Andes, the station is to be built 2000m above sea level.

Norwegian SN Power, which owns 99 per cent of the plant’s developer, Cheves, announced in September it would invest USD 400M in the project. The plant is to be operational, covering the peak electricity requirement in the Lima region, from the end of 2013.

This is the second hydroelectric power plant construction for Hochtief in South America with the first phase of the La Confluencia facility in Chile to be handed over at year-end.

At the same time, Hochtief announced the award of two infrastructure bids in Australia for its subsidiary, Leighton: an EUR 166M (USD 217.5M) share of a EUR 578M (USD 757M) contract for 5km of new highway that went to John Holland, and an unknown share of a EUR 210M (USD 275M) rail link with Thiess.