IN SEPTEMBER, THE INITIATIVE TO IMPROVE WASTEWATER TREATMENT IN CHINCHA WILL BE DECLARED OF INTEREST
Lima, August 9, 2024.- In September, the declaration of interest will be published for the development of the extension and improvement project of the wastewater treatment service through a Co-financed Unsolicited Proposal (CUP), which will enhance the quality of life for 345,000 people in seven districts of the Province of Chincha (WWTP Chincha), according to the Private Investment Promotion Agency (PROINVERSIÓN).
The project requires a reference investment of $96.5 million (excluding VAT) for the design, financing, construction, operation, and maintenance of approximately 15 km of interceptors, a pumping station, 6 kilometers of drive lines, and two new wastewater treatment plants with a total average capacity of 0.6 cubic meters per second, as well as 7.7 km of lines for the final disposal of treated wastewater.
The residents of Chincha Alta, Chincha Baja, Grocio Prado, Pueblo Nuevo, Alto Larán, Sunampe and Tambo de Mora will benefit from the impact of the decontamination of the Chico River, reduction of diseases related to untreated water, improved quality of life and local economic development.
The project was incorporated into the private investment promotion process in 2022 and began the structuring phase, which will conclude with the ratification of the initial version of the concession contract. This contract has received favorable opinions from the Ministry of Housing, Construction, and Sanitation (MVCS) and the Ministry of Economy and Finance (MEF), as well as from the National Superintendence of Sanitation Services - Sunass (regulator). The Comptroller General of the Republic (CGR) has also issued a report, and its recommendations are currently being addressed.
PROINVERSIÓN's Project Director, María del Pilar Caballero, explained that the next step is to ratify the initial version of the concession contract and the declaration of interest in order to request the proponent's agreement; if it agrees, the declaration of interest will be published.
Caballero added that the evaluation process has the technical assistance of the Inter-American Development Bank (IDB) and that the concession will be for 24 years: four years for design and construction and 20 years for operation and maintenance.
After the publication of the declaration of interest, the interested third parties will have 90 calendar days to submit their expressions of interest in the execution of the project. If within the specified term one or more third parties submit their interest, PROINVERSIÓN will proceed with the selection process. Otherwise, if no interested parties come forward, the project will be directly awarded to the proponent with international experience and recognition in the operation of wastewater treatment plants.
The State will co-finance the total investment and part of the operation and maintenance component of the project through the Ministry of Housing, Sanitation and Construction (MCVS). Sunass will set the tariff associated with this project, which will ensure long-term sustainability.
Source: Press Release – PROINVERSIÓN