France's Alstom signs Venezuela hydro power deal

Reuters, 05.11.03, 2:13 PM ET

CARACAS, Venezuela, May 11 (Reuters) - French engineering group Alstom <ALSO.PA> and Venezuela's government Sunday signed a contract to complete a $160 million hydro power project in the southwest of the oil-rich South American country.

The agreement to finish the third stage of the 514 MW La Vueltosa hydroelectric plant in Venezuela's Tachira state was signed by senior executives of Alstom Power Hydro and Nervis Villalobos, president of the Venezuelan state electricity company Cadafe.

Venezuela's President Hugo Chavez witnessed the signing of the contract, which was broadcast live on his weekly "Hello President" radio and television show.

"The construction of the La Vueltosa hydroelectric plant is starting up," Chavez said. He added the total investment would be $160 million and that financing would be provided by European and Brazilian banks.

Chavez said the plant, which would come online in mid-2006, would supply power to the southwest of Venezuela.