Water and sanitation: Proinversión will award 9 PPP projects for almost US$1.3 billion by 2024

Water and sanitation: Proinversión will award 9 PPP projects for almost US$1.3 billion by 2024

The Private Investment Promotion Agency (Proinversión) is promoting the development of 13 water and sanitation projects for more than US$1,550 million, benefiting 4.8 million Peruvians. Of the 13 initiatives, the entity plans to award 9 projects, for close to US$1.3 billion, in the 2023-2024 period.

These projects promoted through the Public-Private Partnerships (PPP) modality are located in 12 regions of the country: Piura, Cajamarca, Lambayeque, La Libertad, Lima, Ica, Moquegua, Cusco, Junín, San Martín, Loreto and Madre de Dios.

This portfolio of projects in the water and sanitation sector is aligned with the State’s strategy of using various investment modalities —APP, Works for Taxes, Public Works or government-to-government agreement— to close gaps in the water and sanitation sector. The investment required by 2026 to help achieve universal access to sanitation services is approximately S/41,000 million, according to the sector.

The water and sanitation projects that are projected to be awarded by 2024 are: Puerto Maldonado WWTP to be awarded in 2023 (US$86 million), Head Works – Phase 1 (US$340 million), Cusco WWTP (US$44 million), Chincha WWTP (US$70), Cajamarca WWTP (US$56 million), Huancayo WWTP (US$172 million), Tarapoto WWTP (US$106 million), Ilo Desalination Plant (US$110 million) and Trujillo WWTP (US$312 million).

“Proinversión is advancing with a clear sense of urgency to help close the gaps in the sanitation sector through PPPs, that ensure the sustainability of the infrastructure and services, with high quality standards,” said Ivan Lucich, Proinversión advisor, an expert in the water and sanitation sector.

What is the modality of Public-Private Partnerships (PPP)?

The PPP is an efficient mechanism that can help close gaps in the provision of drinking water, sewerage, and wastewater treatment at the national level.

A success story, according to the entity, is what is happening in Metropolitan Lima and Callao, where wastewater treatment went from 21% in 2012 (before the start of operation of the PPP plants) to more than 90% in 2020. Currently, Of the 100% of the wastewater treated, 84% is processed by the three plants concessioned by Proinversión: Taboada, La Chira and PROVISUR; while the rest (16%) is treated by various plants managed by the company SEDAPAL.

Source: Larepublica

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