Arequipa: in Majes I they spend 22 million and farmers return a million

The opposition to Majes II -for the executive manager of Autodema, Arturo Arroyo- has a background. He says that the rejection is not necessarily mobilized by what is repeated in auditoriums or the media: that the Addendum 13 it is corruption or that the agro-export model will only benefit a few companies.

There are agro-exporters and collectors, interested in lowering the tire for labor. Something similar happened in Tía María. In the Tambo Valley, the environmental questioning of the mining project was not the only thing. was also installed the fear of farmers due to the scarcity and increase in wages. The mine was going to monopolize the workers.

Arroyo identifies the collectors of Majes I in opposition. They are middlemen who buy the farm production and need cheap labor for crops. With agro-export companies in Majes II that will offer formal salaries, they will have to compete and that does not suit them. “They are petty interests, they think of themselves, not of Arequipa,” says Arroyo.

That interest has been in tune with the position of the regional councilors Elmer Pinto, Edy Medina and a group of professionals who are reluctant to reactivate the project with the signing of Addendum 13. This procedure is trapped in the Regional Council. Almost 40 days have passed and Pinto does not present the opinion to discuss it in plenary.

They repeat various lies in forums, according to the manager of Autodema. For example, the increase in the price of water in El Pedregal. That the smallholding is profitable.

damage to the environment

In an extensive conversation with La República, Arroyo accepted that the Majes I irrigation failed. It is subsistence farming that has caused enormous damage to the environment, he says.

The flood irrigation caused the formation of 2 dams in the subsoil, “in 30 or 40 years there will be outcrops throughout the pampa. Since the water costs them nothing, they waste it,” he says.

To say that Majes I is profitable is not accurate, Arroyo reiterates, contradicting the vision of Councilor Pinto. “If this were the case, we would not subsidize the water rate for the maintenance of the major infrastructure of Majes I. As a regional government, we spend on operate 22 million soles, money of all Peruvians. The user board barely gives us back a million soles. If the Condoroma dam were realistic rates, the tunnels and canals would be in optimal conditions”, he reveals.

The official specifies that the opportunity to fine-tune the irrigation infrastructure is with the reactivation of Majes II. Both irrigations will use the same conduction system. “If Majes II does not come out, it will no longer be a priority to fix that infrastructure. Majes farmers should be the most interested in Majes II coming out. If it doesn’t work out, no one will be interested in repairing it”, he says.

The lands

Is Majes a development opportunity? Arroyo thinks so. There is a great demand for land for agro-export, he says. Peru leads the world production of blueberries and avocados. The plum tree is also another opportunity. In Chavimochiv, the value of a hectare exceeds 20,000 dollars, why in Majes it could not be sold for 10,000 hectares.

-There are specialists who maintain that in addition to Addendum 13, a cost update is coming and the project will increase in cost to 800 million dollars.

We have just agreed on the investment of 104 million. I don’t think there will be another update. They are speculation.

Cobra’s building ability is also questioned.

According to the contract, the partner who accredits experience is Cobra and could not withdraw. Instead Cosapi could withdraw and did.

Do you believe that Addendum 13 will be approved?

We talked to most of the counselors and they agree. Only two oppose and more respond to personal interests (…) If the project falls, it will take 5 or 8 years to reconsider.

Criticism of the dealer

The dealership sent two letters to terminate the Majes contract. The Spaniards proposed direct treatment, trying to settle the dispute via conciliation, before entering arbitration. However, for the GRA has not yet entered that stage, most of the four reasons for the expiration of the contract were acquitted: the purchase of land for works, the preparation of the Condoroma environmental instrument to repair the dam spillway. According to Arroyo, it was not up to the regional administration to carry out this study, but previous administrations accepted it. The position should have been that this was the task of the concessionaire, not the GRA. From Arroyo’s perspective, the dealership is hurrying. (See full note at larepublica.pe/regionsur/

It argues as expiration, the lack of Sovereign Guarantees, a financial guarantee that the State must grant so that they can recover their investment (RPI), however, that requirement is required when the works are delivered. In the contract it is not fixed when that obligation must be fulfilled. Majes is a PPP, Cobra recovers its investment with water rates, 30 million dollars per year, in such a way that if that amount is not reached, the guarantee is used.

Arroyo says that they are not required to sign addendum 13, however he warns that if this is not done the concessionaire will withdraw from the operation. There is no way to go back to accepting the original open channel design. “They have waited almost four years, they have taken steps together with the GRA for addendum 13 and then you tell them no? That’s why they already presented their expiration letter.

Source: Larepublica

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