The Aysén project involves the construction of two hydro plants on the Baker river, with a further two on the Pascua river. Project costs have been estimated at US$4B of which US$2.5B relates to generation and US$1.5B for transmission.

The Board of Directors of Endesa Chile has agreed to authorise the company’s management to sign a memorandum of understanding (MoU) with Colbún which states that a corporation will be set up to develop the project, with Endesa Chile owning a 51% stake, and Colbún holding the remaining 49%. In recognition of it’s contribution to the project, Endesa Chile will receive 12.3% of the energy generated by the project for 30 years from the start-up dates of each of the plants. The remainder of the energy produced will be delivered 51% to Endesa Chile and 49% to Colbún.

The first plant in the Aysén scheme is expected to enter service in 2012, with the last commissioned by 2018.