Recently, Montevideo, the capital of Uruguay, has welcomed a key milestone in water security construction. The National Water Resources Administration and the Latin American Development Bank have just signed a $130 million financing agreement, and the Kasupa Dam has officially entered the global bidding stage. This dam located in Florida is considered the ultimate solution to end the capital's years of drought.

Double reserves

In the summers of 2023 and 2025, Uruguay will experience consecutive extreme droughts, causing millions of residents in the capital and surrounding areas to face limited water supply difficulties. After the completion of the Kasupa Dam, an additional 118 million cubic meters of water storage capacity will be added, and the national freshwater reserves will soar from 80 million cubic meters to 200 million cubic meters, an increase of 150%. By coordinating with the existing reservoirs in Paso Severino and Grande Canelon to form a three reservoir joint operation, the capital can maintain stable water supply even in the event of a drought similar to the 2023 grade.

Completed in 2029

The current preliminary work is accelerating. The pre qualification of contractors will be completed within three weeks, followed by the launch of global open bidding. All administrative approval plans are scheduled to be completed by the end of 2026, officially started in early 2027, and fully completed in the third quarter of 2029. During the peak construction period, more than 700 job opportunities will be provided, and in addition to full financing, CAF will also dispatch a team of experts to provide technical guidance throughout the entire process.

Global water network formation

Kasupa is just one part of the largest investment plan in OSE's history. Aguascalientes Water Treatment Plant is expected to start construction in the second half of 2026; The seventh water pipeline will deliver clean water sources to the province of Canelones later in 2026; The water supply project in the eastern part of the Gold Coast is steadily advancing; Soriano, Maldonado, Paisandu and other provinces are simultaneously upgrading their health facilities. Keywords: hydropower, new energy

2026 is a watershed year for Uruguay's water security. From a single dam to the national water network, a three-dimensional system covering drinking, transportation, distribution, and treatment is taking shape. For this South American country with a population of 3.5 million, this is not only a livelihood project, but also a long-term bet on addressing climate change.Editor/Cheng Liting