The plans consist in the construction of two dams, Cóndor Cliff and La Barrancosa dams with the objective of hydroelectrically optimizing the Santa Cruz River.
Both dams will be on strategic high potential hydropower locations that have thorough studies backing this claim all of which date back to 1970.
The dams will have an installed power capacity of 1310 mW, which represents 8% of the maximum national consumption at peak. It will permit an average annual generation of 5300 gW.
Whereas previous projects such as Yacyretá and Salto Grande were multinational efforts, these current projects will be purely national, and will be the most important projects on a national level.
One of the most outstanding aspects of the Project is its funding, since it´s without equal in the country. The funding by Chinese banks consists in a long term loan, with low interest rates (121% of the total project), whereas other Latin American countries offered much higher interests rates and much lower amounts. No other investment group offered such a low interest rate. The government will only contribute less than 15% of the total amount. The remainder of this debt will be repaid using earnings arising from the sales of electricity produced by the power plants. Cash flow will be guaranteed during the six year construction period. This way, it will be done properly and on time. That is to say, the construction will start, come to an end, and generate the money necessary to repay its debt. (O&M).
