PROINVERSIÓN WILL PREPARE TECHNICAL STUDIES AND A NEW CONCESSION PROCESS FOR THE CHAVIMOCHIC PROJECT
Lima, May 10, 2024.- The Private Investment Promotion Agency – PROINVERSIÓN was commissioned by the Regional Government of La Libertad to contract and prepare the technical studies, evaluation report and new promotion process of the Chavimochic project.
Through an agreement signed at the headquarters of the Regional Government of La Libertad, the agency will be in charge of promoting a new concession, as well as the operation and maintenance of the three stages of the project, which previously implied a financial and legal structuring, and the preparation of updated engineering studies of the most important irrigation project in the country.
With this decision, the authorities are taking a decisive step towards resuming and concluding the execution of the Chavimochic project, located on the coastal strip of the department of La Libertad, which is intended to capture the Santa River flows for irrigation of land in the Chao, Viru, Moche and Chicama valleys and intervalleys, meet population demand and generate energy in three hydroelectric power plants.
The ceremony, which was attended by the regional governor, César Acuña; the Minister of Economy and Finance, José Arista; and the executive director of PROINVERSIÓN, José Salardi, was made after the Government-to-Government contract between Peru and Canada was signed last week at the Government Palace for the completion of the Palo Redondo dam of the Chavimochic III Stage Project and the installation of the third line of the Virú Siphon.
With this agreement, the Regional Government of La Libertad was authorized to entrust PROINVERSIÓN with contracting the updating studies and conducting a new concession process for the Chavimochic project, including the works of Stage III.
PROINVERSIÓN's participation will allow the Chavimochic Project to finally achieve its original objectives as a Public-Private Partnership (PPP), i.e., to incorporate 63 thousand hectares of new land and improve irrigation in 48 thousand hectares in the Chicama Valley.
The concession will promote private investments of US$ 2.4 billion in the agricultural and agribusiness development of these lands, from which it will be possible to obtain an agro export production equivalent to US$ 2 billion per year and generate up to 150 thousand direct jobs.
Through the new PPP scheme of the Chavimochic project, it will be possible to recover the investments in the infrastructure of the III stage and pay the operation and maintenance costs of the integrated project with the revenue flows from the sale of land and the collection of water service tariffs from the users of the three stages of the project.
Source: Press Release – PROINVERSIÓN