The tunnel, which will be completed by the end of this year, is part of the Olmos-Tinajones hydroelectric-irrigation project in Peru's Lambayeque region.
The project includes irrigation works for about 150,000 hectares, the trasvase of the waters to the Pacific basin and the construction of a hydropower project of 4,000GWh.
The 20-kilometer-length tunnel has been designed to pull water from the Huancabamba river to irrigate 57,000 hectares of land in the project's first phase.
The construction of the irrigation project will create more than 10,000 direct and indirect jobs. Once all stages are complete, the Olmos project will supply up to 2,050 million cu m/year of water, have capacity to generate 600 MW of electricity and irrigate more than 150,000 ha for agricultural production.