The Dominican Republic's President Leonel Fernández has launched work to complete construction of the Guaigüí dam in central province La Vega.

The initiative will require a total investment of US$115mn, of which US$78mn is being financed by Deutsche Bank (NYSE: DB). The government will contribute US$37mn, according to a presidential release.

Work is being carried out by national water authority Indrhi and involves building a 75m-high, 200m-long dam and reservoir with capacity of 50Mm3.

The initiative will secure potable water supply for some 20 years, with capacity to irrigate 86,000ha of rice fields, as well as controlling flooding on the Camú river.

The project includes a hydroelectric component that will generate 3.7MW of electricity to cut carbon emissions by 7,869t.