Loans in the amount of US$111.3 million for the construction of a hydroelectric dam at Palomino in the southwest of the country were last night approved by the Senate.

The amount is comprised of two loans. The first coming from Brazil's BNDES Bank in the amount of US$81.3 million which the Dominican State-owned Electrical Companies (CDEEE) will use to partially pay Brazillian contractor Norberto Odebrecht to build the plant that will have a 99 megawatt capacity. The balance of the project will be paid from a US30 million loan from Brazillian BNP Paribas Bank.

The project (the Electrical Generation Plan) is part of the Dominican Republic's effort to use its hydraulic potential and develop other sources of renewable energy to move away from dependence on oil and to lower power costs.

The bill must still go to the Chamber of Deputies for debate.