The project is a joint venture with Italian contractor Astaldi SA, who will be the lead contractor, and has a 27 per cent interest in the project.

The company has now invested over $1.85 billion in projects in Chile and Brazil, most of which has occurred in the last four years. A significant driver of the company’s investment in to the region to date is the ability of clean energy projects to create carbon credits under the Kyoto Protocol’s Clean Development Mechanism (CDM) which can then be sold into the European Emissions Trading Scheme.

“Our ability to create carbon credits under the CDM framework is a critical component of the Chacayes investment decision. In addition to significant regional investment, the project will create 4,200 direct and indirect jobs over the two years of construction. We know from practical experience that an emissions trading scheme is a highly effective means of driving investment and creating jobs,” said Pacific Hydro CEO Rob Grant.

“Australia will benefit from similar significant investment and job creation opportunities once the climate change and energy policies proposed by the Rudd Government are put in place,” said Mr Grant.

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Mr Grant called for the Australian Parliament to ensure passage of both the Carbon Pollution Reduction Scheme and the 20 per cent Renewable Energy Target this year .