Trans Andean tunnel and dam system construction underway in Peru

9 February 2011

Construction of the $190 million Trans Andean tunnel and dam system in Peru’s Lambayeque region to provide water for new agricultural lands is currently underway.

The tunnel and dam system, part of the Olmos Transandino Project, is being constructed on multi-purpose embankment dam on the Huancabamba River in northwestern Peru, located to the south of Guabal. H2Olmos, a subsidiary of Brazilian company Odebrecht, will manage the project. Upon completion in 2012, the tunnel will measure 20km (12.4 miles). H2Olmos has worked on the mega-project since 2006 and upon completion it will manage the irrigation system for the next 23 years. The water transfer will be accomplished by the Limon Dam on the Huancabamba River which will divert up to two billion cubic metres of water per year through a 20km trans-Andean tunnel to the Olmos Valley The Limon Dam will be a 43m high, 320m long embankment dam and when full, will have a reservoir capacity of 44,000,000 cubic metres. In addition, the dam will house a hydroelectricity power plant with a 600MW capacity. Upon completion of the irrigation part of the scheme in 2013, the Peruvian government plans to sell 38,000 hectares of land in the region at a price of $4,250 per hectare.