São Paulo State, in partnership with the federal government, will invest 300m reais (US$57m) in the Tietê-Paraná waterway project, BNamericas reports.
Investments will be made in dredging operations to improve navigability during dry seasons, the state government said in a press release.
The project will see 16km deepened by 3.5m in the Nova Avanhandava area.
In addition to improved navigability, the works will also allow for greater flexibility in the operation of the Três Irmãos and Ilha Solteira hydroelectric power plants.
A consortium formed by companies DP Barros, Brawu Ambiental and O’Martin will be responsible for the works.
Dredging will start in the next 30 days and are expected to be concluded in three years.