This article is part of a daily series of MegaProjects articles. If you want to know more about PPP projects with a considerable size visit our MegaProjects section. You can receive them by email on a daily basis.

The Chilean Ministry of Public Works (MOP) has announced that is has launched a tender process for the Punilla reservoir project in the Bío-Bío Region.

The contract has a concession model that mixes irrigation and hydroelectric generation.

The project cost is estimated at US$600 million with financing to be split between the government, local farmers and a private concessionaire.

The pre-qualification phase is open to both local and foreign companies starting today. The project is scheduled to be awarded in August 2014.

The contract is a 20 years concession with income from generation of hydroelectricity, sale of water rights prior to the concession (considered as annual income) and use of water not acquired by the reservoir's users.

The project is expected to double the amount of irrigated lands to over 60,000ha. It includes a reservoir with a usefull volume of 600 hm3, which will be located 30km from San Fabián de Alico, and a 94MW hydro power plant.

The reservoir would address the irrigation regulation and security needs of farmers in the area of the River à‘uble, including the  à‘uble province and part of the San Carlos, Chillán, à‘iquén, San Nicolás, Coihueco and San Fabián de Alico municipal districts in the Bío-Bío Region.