Prefeasibility studies are under way for the 138-MW Paz hydro project on the border between Guatemala and El Salvador, news agencies reported.
Spanish firm Iberinsa was awarded the contract in 2009, reports indicate.
El Salvador's CEL and Guatemala's state power utility Inde are behind the project, which would be made up of the El Jobo (72 MW) and Piedra de Toro (66 MW) hydropower plants.
In other news, Brazil's Parana state power firm Copel has signed the concession agreement with the Brazilian mines and energy ministry to build and operate the 300-MW Colider hydropower project, news agencies reported.
Under the agreement, Copel will invest about 1.3 billion reais (US$778 million) in the hydroelectric project, Business News Americas reported.
The Colider hydro plant will be located in the state of Mato Grosso. The plant is planned to come online in December 2014.
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