Congress: they seek governments to negotiate directly with private companies for water supply

Through Bill No. 06095/2023-CR, presented by Eduardo Castillo (Fuerza Popular), the participation of the private sector is promoted to ensure water resources at the national level.

According to this proposal, it is supported that The national, regional and municipal governments sign contracts with private companies to develop or propose investment projectsas well as its financing and execution to close gaps in water and sanitation, considering as infrastructure what is provided in the Water Resources Law (Law No. 29338).

The Ministry of Economy and Finance (MEF) will issue a Certificate of Investment for Water Resources Assurance Projects (CIPARH) to the company that signs the agreement with the Governments. This document will be valid for five years and will be used exclusively as payment on account of the income tax corresponding to the previous year.

The regulations of this initiative will establish the requirements that the interested party must meet in these water infrastructure projects. Additionally, depending on the investment amount, the MEF will determine the applicable percentages to deduct the IR in each CIPARH.

Each item of the bill is financed from the institutional budget of each public entity that signs an agreement with the private company; Likewise, the resources directly collected by the projects are included in the entity’s budget item.