Conditions of the agreement between the Nicaraguan government and the consortium of Brazilian companies are unknown.
In regards to the agreement for the construction of the hydroelectric station only the price of the energy generated is known, which will be between $118 and $125 per megawatt.
However Emilio Rappaccioli, Minister of Energy and Mines, "made no mention of the energy rate that was negotiated and would only say that "we are signing the document ensuring that the project will become a reality, and construction will be starting, I would say, in three or four months time, concluding at the end of 2018. "
Nicaragua and the concessionaire CHN have signed a concession agreement in which the Brazilian company promises to start construction in mid-2014.
The largest hydroelectric project in Nicaragua has so far read like a never ending story, as over the last few years a number of announcements have been made for the start of its construction, which until now has been hampered by lack of agreement on the tariffs that will be set by the Brazilian company for electricity sales.
As soon as the port at Monkey Point has been built, the country may build a pipeline in the Caribbean leading to the Pacific Ocean.
Virgilio Silva, chief executive of state-owned Empresa Nacional Portuaria de Nicaragua, told Efe that through the pipeline, "oil from Venezuela would be transported."
Last week the government signed an agreement with the Brazilian company Andrade Gutierrez, to carry out feasibility studies for construction of the deepwater port at Monkey Point.
The presidents of both countries agreed to reactivate a project to build a refinery in the northwestern region of Nicaragua.
The project was conceived back in 2007, at an estimated cost of $4 billion.
While visiting Nicaragua, Venezuelan president Hugo Chávez commented on other bilateral projects, such as “building a degasifying plant and a fertilizer processing facility”, reported Univision.com.
In the next four years Nicaragua plans to incorporate 856 megawatts of renewable energy into the national electric system.
According to Invertia "the cost of the investment in these projects will total $2.1 billion dollars," of which 350 million will come from Brazil for the construction of a hydroelectric plant.
64.9% of the energy will be hydroelectric, 23.4% geothermic, and 11.7% carbon-based, according to the projects that the government hopes to carry out during the 2009-2013 period, the report said."