Arequipa regional government and Luz del Sur have signed the PPP contract to advance the power generation component of the Majes Siguas II hydro project. The deal covers the construction of the Lluta and Lluclla plants, whose combined capacity will top 480 MW and cost an estimated USD 970 million. The regional government authorized the award of the private initiative to Luz in December. Work to restart the multipurpose hydro project is expected to begin in August.