Swedish contractor NCC has concluded an agreement for the Alto Yuna water systems expansion project in the Dominican Republic.

Worth a total of SEK1.9 bn ($US178m), the project involves the construction of a dam, two power stations and numerous tunnels.

The tunnels will include a 5.1m diameter and 11,000m long headrace tunnel, a 2,500m long diversion bore with a cross-section of 22m², and a 5.2m diameter and 2,700m long tailrace tunnel. There will also be around 2,000m of miscellaneous tunnels in the dam area, with cross-sections ranging from 22m² to 135m². In addition there will be 800m of access tunnels with cross-sections ranging from 35m² to 45m².

The contract is conditional on an environmental impact assessment inquiry. The inquiry will take one year to ensure that it encompasses conditions during both wet and dry periods. Accordingly, it will take at least one year before construction can start.

It is intended that the project will be financed by Exportfinans of Oslo, based on credit guarantees from the Swedish Export Credit Guarantee Board and the Norwegian Institute for Export Credit Guarantees.

In addition to being a reservoir for power generation, the dam will serve as a store for irrigation and as a control tool in the event of flooding. The two power stations will have a combined capacity of 63MW.

A tunnel is to be built leading to the power stations and then on to the river. It will have a side outlet to safeguard water supply to two cities in the central part of the Republic.