CONSORTIUM WILL START STUDY THAT WILL DEFINE THE INVESTMENT MECHANISM OF THE CHINECAS PROJECT

Lima, April 4, 2024.- A big step for Chinecas. The Private Investment Promotion Agency (PROINVERSIÓN) signed with the “Consorcio LSH Consulting Engineers S.A.C. – Agua Energía y Minería Ingenieros Consultores S.A.” (Peruvian-German companies) the contract to prepare pre-investment studies to define the viability and investment mechanism of the Chinecas irrigation project in Ancash.

The subscription of the contract was attended by the Deputy Minister of Family Agriculture, Agricultural Infrastructure, and Irrigation Development, Christian Barrantes, the regional governor of Ancash, Fabian Koki Noriega and the executive director of PROINVESIÓN, José Salardi.

With this, PROINVERSIÓN, together with the Ministries of Economy and Finance (MEF) and Agricultural Development and Irrigation (MIDAGRI), as well as the Regional Government of Ancash, take an important step towards making this mega irrigation project a reality, which could increase agro-industrial production by US$ 1.5 billion annually and generate 150,000 new jobs.

The pre-investment studies will be carried out within 14 months and will allow the declaration of viability of the project to be obtained. On this basis, the evaluation report will be prepared that will define whether the project is developed through a Public-Private Partnership (PPP) within the framework of a promotion process or goes as a public work.

If the first scenario occurs, PROINVERSIÓN would be in charge of designing and conducting the structuring and transaction phases of the project, as well as the tender that will allow the awarding of the development of Chinecas to a specialized concessionaire.

The project will require an investment of more than US$ 700 million, allowing water to be diverted from the Santa River to incorporate 50,000 hectares of new land and improve irrigation on another 33,000 hectares in the valleys and intervalleys of Santa Lacramarca, Nepeña, Casma and Huarmey. Likewise, the resource will be used for the supply of population use in the localities within the area of influence and in the hydroelectric exploitation that is viable.

Currently, the Chinecas project has a set of works built and in operation, these are two water intakes in the Santa River, canals and tunnels with an extension to the Nepeña Valley. Meanwhile, a new main water intake and reservoirs will be built to regulate the waters of the Santa River and the extension of its main canals to the Casma and Huarmey valleys;

The project’s new infrastructure and the improvement of existing works will provide year-round water, facilitating the development of modern agriculture for the country.

The contract was signed within the framework of the inter-institutional agreement signed in 2023 between PROINVERSIÓN and the Regional Government of Ancash through which the agency is responsible for the selection, contracting and monitoring of the pre-investment technical studies, supervision and the Evaluation Report.

By virtue of the agreement, all PROINVERSIÓN interventions will be carried out in coordination with the Regional Government of Ancash and the Chinecas Special Project, which during the study stage will be constituted as the Project Formulation Unit.

Source: Press Release – PROINVERSIÓN