OSE and CAF-Development Bank of Latin America and the Caribbean have signed a $130m financing agreement for the construction of the Casupá dam in Florida department, Uruguay.
OSE President Pablo Ferreri said the project would increase the country’s freshwater reserve capacity from 80 million to 200 million cubic meters. The new dam will store 118 million cubic meters of water, adding to existing reserves at Paso Severino and Canelón Grande.
Ferreri described the project as strategic for the supply of drinking water and said it would help prevent shortages during drought periods such as those experienced in 2023 and during the last summer in the metropolitan area.
The prequalification process for construction companies is expected to conclude within three weeks, after which an international public tender will be launched. Administrative procedures are expected to be completed by the end of 2026, with construction scheduled to begin in early 2027. The project is expected to be completed in the third quarter of 2029.
Ferreri said more than 700 direct and indirect jobs would be created at the peak of construction.
CAF’s representative in Uruguay, Miguel Ostos, said the dam was a strategic project for the country and confirmed that CAF would provide both financing and technical support.
Ferreri also announced what he described as the largest investment plan in OSE’s history. Alongside the Casupá dam, construction of a water treatment plant in Aguas Corrientes is expected to begin in the second half of this year.
OSE also plans to start work on a seventh pumping line to supply water to Canelones later this year. Additional projects are advancing to expand water supply in the eastern Costa de Oro region.
The company is also investing in sanitation projects across several departments, including Soriano, Maldonado, Paysandú, Rivera and Tacuarembó.
