Chavimochic III: Midagri studies up to three modalities to execute the third stage

The Minister of Agrarian Development and Irrigation, Nelly Paredes, reported that the Peruvian government is evaluating up to three modalities to complete the works of the Palo Redondo dam, a crucial part of the Chavimochic III project.

The head of Midagri said that up to 3 modalities have been identified for the reactivation of the project and the construction of the Palo Redondo dam, such as through public works, Government to Government (G2G) and Public Private Partnership.

“Alternatives are analyzed based on cost-benefit methodologies; eligibility criteria (DL 1362), public-private comparator, Invierte.pe, regulatory analysis and qualitative analysis. For this reason, I wish to ratify the political will of the Government to carry out this emblematic project, ”he said.

In this sense, Paredes assured that the most viable alternative would be the application of the contracting of G2G, through internal guidelines for the management destined to the acquisition of goods and execution of works by a foreign State.

“Through this modality, Midagri would commission the execution of the project, shortening deadlines and reducing the risks of non-compliance, as well as obtaining benefits from the implementation of modern procedures for specialized project management,” he said.

The head of MIDAGRI remarked that the execution of the third stage through G2G has given results, as has been the case of the Pan American Games, and experience has already been gained.

“However, this decision (execution modality) will be made after an analysis and in compliance with current regulations,” he said.

Chavimochic III: trapped arbitration award

Regarding the arbitral award, the minister stated that according to information from the Midagri Public Prosecutor’s Office, the Arbitral Tribunal has a period of 45 business days to attend to the request made by the Chavimochic concessionaire, “that is, the award will be integrated on January 26 of 2023″.

On the other hand, it indicated that through RM No. 00232-2021-MIDAGRI dated August 12, 2021, it is established that the General Directorate of Hydraulic Infrastructure and Irrigation (DGIHR) will be in charge of the management and administration of the Concession Contract of the Chavimochic Project.

“The DGIHR, as the contract administrator, must ensure the correct technical, economic and administrative execution of the contract until its completion, providing clear instructions on the actions to be carried out during this process, that is, they are the Technical Department in charge of carrying out the termination of the Concession Contract, which includes carrying out the necessary contracts in order to implement the arbitration award, the liquidation and finally the closing of the concession contract”, he indicated.

The third stage of the Chavimochic project contemplates the execution of the balance of the Palo Redondo dam and its related works, which will contribute to improving the efficiency in the application of irrigation water in the Chao and Virú valleys. The works will benefit 30,000 hectares and the generation of 120,000 jobs.