Brazilian firm DP Barros is planning to start the construction of the R$114m ($63m) Guamiranga reservoir in the first quarter of 2012.
The firm will build the reservoir over a 70,000m2 area on the Tamanduateí river located near São Paulo city, Brazil.
It will have capacity to store 850,000m3 of water, and is part of a series of works to prevent flooding in the Tietê river basin area.
A spokesman for water and electricity department DAEE told BNamericas that the work is expected to start in February and be complete within 36 months.
On completion, the project will benefit around 500,000 residents, mainly from the surroundings of Vila Prudente and Mooca.
