The ten billion dollar dam

The ten billion dollar dam

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This paper reports on the nearing completion of Argentina's largest hydroelectric power station, Yacyreta, despite all the controversies surrounding its construction. Built jointly by Argentina and Paraguay to harness the hydraulic resources of the Parana River, the project has been plagued by a series of delays and corruption scandals. Beyond the corruption, however, the key problem with Yacyreta is the fact that operating at 60% of full capacity translates into poorer production figures than those originally anticipated. Should the plant have been operating at its full capacity, it would be able to supply about 25% of all electricity consumed by the country. In the meantime, the Argentinian government plans to launch new power stations in 2007 until Yacyreta's untapped potential becomes available by 2009.

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