The Portuguese government Tuesday gave utility Energias de Portugal SA (EDP.LB), or EdP, a contract to build and manage the Foz Tua hydroelectric dam in the north of the country, EdP said in a regulatory filing.
The 75-year contract is worth EUR340 million and the dam will have a total production capacity of 324 megawatts.
Recent local media reports have said construction is due to start in September 2009.
EdP expects its hydroelectric capacity in Portugal and Spain to grow 36% through 2015.