Bulgarian national power grid operator NEC and Austrian energy company EVN signed a shareholder agreement for the construction of the 174.2MW hydropower complex Gorna Arda in south-eastern Bulgaria, local media reported. The technical project and its budget are to be prepared by the end of the year and construction works are to start in early 2012. EVN will control 70% of the company, which will run the project, and will invest BGN 1.39mn (EUR 710,696) in its capital. Gorna Arda will comprise three hydropower generators with an average annual production of 440 GWh. Construction works are expected to take between 5 and 8 years. The project will create some 3,000 permanent jobs and 4,000 - 5,000 in the construction phase. The total investment is expected to reach some EUR 500mn, up from the original EUR 310mn, planned several years ago. The project is expected to provide electricity to 100,000 households or 500,000 people. Earlier in the year, EVN and Alpine signed a memorandum with Turkish investors for the acquisition of their 30% stake in the project but later Alpine withdrew from the project.