Work on the 253-MW Tumarin hydroelectric plant has been suspended indefinitely following Brazilian construction firm Queiroz Galvao's exit from Nicaragua, multiple local sources have reported.
The company shares a 90% stake in Tumarin's development group, Centrales Hidroelectricas de Nicaragua (CHN), with Brazil's Eletrobras.
HRW-Hydro Review Worldwide magazine reported that CHN had begun initial works on the plant in March 2011, at which point the project was projected to begin operating in early 2015.
However, HydroWorld.com reported in January 2014 that the official groundbreaking on the plant had been postponed at least until the end of that year.
The project has experienced a string of delays in the interim, with the ailing Brazilian economy being cited as Queiroz Galvao's decision to pull out of the Central American country.
Tumarin was to have cost more than US$1 billion, with financing coming from Eletrobras under a 2008 build-operate-transfer contract that would have lasted up to 30 years. The project was to have been located on the Rio Grande de Matagalpa near Apawas.
Nicaraguan officials said they are still hopeful the hydropower plant might ultimately become a reality, but that its development is largely dependent on the recovery of Brazil's economy.
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