The Fernandez government has taken a commercial loan with the ABN AMRO banking group and a pool of Scandinavian banks for US$65.9 million, to build the Guaigui dam in La Vega. The government entrusted the construction of the dam to the Italian-Dominican firm, Impreglio-Yarull. It will cost US$59.4 million. Design and supervision of the dam construction will cost US$6.5 million. The executive director of the National Institute of Hydraulic Resources (INDRHI) said that the loan would allow for the completion of the dam during the Fernandez administration. Frank Rodriguez told the press that the dam will provide potable water for the Province of La Vega, will control flooding of the Bajo Yuna River, will make water available for farm irrigation and will generate two megawatts of power.