Peru’s Ministry of Energy and Mines has rejected a study from Energetica Veracruz on the environmental impact of a potential 730 MW hydroelectric dam in the regions of Cajamarca and the Amazon.

The ministry’s decision is believed to be primarily based on concerns over the geological impact of project.

According to the official report, there will be an “intense” tectonic deformation in the area proposed for the construction of the hydropower plant.

The project was to be locate don the Maranon river, and comprise a 168-metre high dam with a capacity of 431m cubic metres, according to Business News Americas.

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