PROINVERSIÓN: PPP MECHANISM ALLOWS TREATING 90% OF LIMA'S WASTEWATER

January 17, 2022 - Lima.- Potential investors learned about the Puerto Maldonado WWTP project through a webinar organized by ProInversión.   

The application of the Public-Private Partnership (PPP) mechanism made it possible to increase Lima's wastewater treatment from 22% to more than 90%, said ProInversión's executive director, José Salardi.

In this sense, he said that PPPs contribute to closing infrastructure gaps in the sanitation sector, as is the successful case of their implementation in Lima, meeting environmental standards and substantially reducing environmental pollution.

Likewise, Salardi indicated that ProInversión has 13 water and sanitation PPP projects in its portfolio, which require an investment of approximately US$1.5 billion; the portfolio includes wastewater treatment plant (WWTP) projects, drinking water projects and desalination plants.

This was stated during the webinar on the Puerto Maldonado WWTP project, organized by ProInversión and the Ministry of Housing, Construction and Sanitation (MVCS), which was attended by investors, consultants, bank representatives, law firms and construction companies. 

"ProInversión and the MVCS are working, through the PPP mechanism, to contribute to closing the $9.5 billion gap in the sanitation sector, affecting 3.4 million people," said José Salardi, in his welcoming remarks to the webinar.

In addition, the Minister of the MVCS, Hania Pérez de Cuéllar, mentioned that access to water and sanitation is a fundamental human right, however, currently millions of Peruvians do not have access to these services, which affects their quality of life.

She also indicated that, in order to improve this situation, her sector is working to unblock seven mega-projects, one of them being Puerto Maldonado WWTP.

"We are working in coordination with ProInversión, not only to unblock the seven projects, but also to initiate new projects through the public-private mechanism," she said. 

"I have no doubt that the synergy between the private and public sectors is essential to reduce the gaps and achieve the sustainable development goals we have set for 2030," added the head of the Ministry of Housing.

Maldonado WWTP Project

The Puerto Maldonado WWTP project, which will be executed through the PPP mechanism, includes the installation of household connections and secondary networks in areas of the city that do not have sanitary sewerage services; it includes the construction of primary sewerage networks (mains), pumping chambers (with their respective drive lines) and the wastewater treatment plant (WWTP).

The estimated investment in works amounts to US$88 million (including VAT), and the concession term is 22 years. 

According to the project's bidding terms, interested bidders will be able to comment and submit their suggestions until January 30, for which they must first register as participants. Investors may submit their documents to pre-qualify as bidders until March 10, 2023.

Source: Andina