Local generating company Hidropaute is developing the project on the river Paute and hopes eventually that it can reach an installed capacity of 400MW.
According to the ministry's figures, the project has a power potential on the site estimated at some 500MW. The scheme would not require construction of a dam but operate run-of-river.
Earlier this month the national energy regulator Conelec awarded the basic concession for the project to Hidropaute.
A range of financing options have been structured for the hydro scheme by Hidopaute in laison with the ministry and the Andean Development Corporation.
Feasibility studies for the scheme were carried out 15 years ago, which Hidropaute hopes will help address environmental impact assesments but it is also planning to appoint a consultant for the necessary additional reviews.
According to Conelec's national electrification plan, the Sopladora project had an estimated installed power cost of US$1171 per kW (2003 prices) based on the same installed capacity. The average annual power production was expected to be 2,417 GWh.
