Brazil helps in $800 million Nicaragua hydro plant

MANAGUA, Nicaragua

A bank and companies from Brazil will help Nicaragua finance an $800 million hydroelectric power plant on a river that flows to the Central American country's Caribbean coast.

Nicaraguan President Daniel Ortega says Brazil's Banco de Fomento will provide $342 million in financing for the plant, which would have a peak capacity of 250 megawatts.

Two Brazilian companies will provide another $206 million in credits, and the Central American Bank for Economic Integration will put up another $252 million.

Ortega said Friday the will be built on the Rio Grande de Matagalpa, northeast of the capital.

Nicaragua currently produces about 80 percent of its electricity with oil-fired plants.