Nicaragua and the Brazilian companies Eletrobras and Queiroz Galvao through its representative company in Nicaragua Empresa Centrales Hidroeléctricas de Centroamérica have signed a concession agreement in which the Brazilian companies have agreed to start construction of the largest hydroelectric project in Nicaragua, the Tumarín hydro station, in mid-2014.

This is a positive development following years of uncertainty over the project due to the lack of agreement on the tariffs that would be set by the Brazilian company for electricity sales. Both sides have now reached an agreement on these rates but the details have not been disclosed.

Concession of the hydroelectric station Tumarín was granted in mid-2008 to the Brazilian companies. At that time the start date for its operation was projected for the end of 2012 and the planned investment was $500m for the generation of 160MW.

Taken from the newsletter of the Nicaraguan Embassy in Britain – 4th April 2014