Chavimochic III would improve the yield of 50,000 hectares by 59%

The works of the third stage of chavimochic they would restart in 2024. The execution, this time, would be under the Government-to-Government modality, according to César Acuña, regional governor of La Libertad.

The northern authority indicated that this agreement was reached after having held a working meeting with Alex Contreras, Minister of Economy and Finance (MEF), and Nelly Paredes, head of the Ministry of Agrarian Development and Irrigation (Midagri). “The efforts are going very well because basically it is an administrative change. If we are optimistic, this week we will sign the agreement, and the following week Midagri will have to see with which government the work will be done. The news is that Chavimochic is going, and I feel happy because there is political will, ”he said.

However, from the Midagri indicated that the execution modality is still under evaluation, from the MEF they did not give any response.

Chavimochic’s impact

What is clear is that the completion of the water project will have a strong economic impact on La Libertad. In fact, it would add 19,410 hectares to agriculture, which would mean an increase of US$898 million per year for agro-exports from the region, according to a study by Phase Consultants Made for the Association for Sustainable Agricultural Development (ADAS).

The research also considers that the availability of water would improve productivity by 50,047 additional hectares, which would go from producing US$14,747 to US$23,585 per year on average, which is equivalent to a growth of 59.93%. With all this, Chavimochic III, considering the prices before the increases registered in 2022, would add US$1,340 million annually to the agricultural production of Libertad. While taking recent prices into account, this figure would reach US$1.5 billion per year.

Another benefit for unlocking the plays will be employment Thus, the expansion of cultivation areas by the project would mean an increase of 196,000 jobs, which is equivalent to around 4% of the population dedicated to agricultural activities in Peru. To this is added that during the construction phase of the project nearly 32,000 direct jobs would be generated.

Finally, the report indicates that if Chavimochic had been completed in 2018, the exchange rate should have been 2.2% lower than that observed in this period since then. This would also have reduced inflation by about 1.5%.

The word

César Acuña, regional governor of the department of La Libertad

“The efforts are going very well (…). If we are optimistic, this week we signed the agreement, and the following Midagri will have to see with which government this work will be done,” he outlined.

Impact of the third stage of the Chavimochic Project