Rurelec plc, which owns and operates power generation capacity in several Latin America countries, is to make a new investment in Peru through the acquisition of the 255 MW Santa Rita hydro development project.

Cascade Hydro Limited, in which Rurelec holds a 50 per cent stake, is making the acquisition.

Cascade will pay $10m for the Santa Rita run-of-river hydro project, plus an additional payment, capped at $5m in the event that certain performance targets are reached.

Cascade is a hydropower development company focused on run-of-river projects. The firm already owns the 4 MW Canchayllo project.

With a planned construction period of 42 months post financing, the $600m project is not expected to enter commercial operations until 2017.

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