NEWS

PUERTO MALDONADO WWTP ATTRACTS INTEREST FROM INVESTORS

Lima, November 23th, 2020.- The Private Investment Promotion Agency (PROINVERSIÓN) organized the second webinar of the project "Improvement of the Sewerage and Wastewater Treatment System of Puerto Maldonado city, District of Tambopata, Province of Tambopata, Department of Madre de Dios" - Puerto Maldonado WWTP, in order to inform potential investors about the technical, financial and legal aspects of the project.
Last September, WWTP Puerto Maldonado, which was called for Comprehensive Project Tender by PROINVERSIÓN, is attracting the attention of national and international investors who are currently making inquiries about the Tender Documents and suggestions for the Initial Version of the Concession Contract.

This webinar, which was attended by investors, consultants, bank representatives, law firms, construction companies, among others, had the participation of PROINVERSIÓN's Executive Director, Rafael Ugaz, the Special Projects Director, Karin Granda, and the Project Manager of the Puerto Maldonado WWTP, Juan Pablo Méndez.

The Executive Director of PROINVERSIÓN said: "Private investment is important for closing gaps in social infrastructure, which, in the specific case of the water and sanitation sector, has been estimated at more than US$ 9 billion", adding that the Agency has a portfolio of 11 priority PPP projects for wastewater treatment, drinking water supply and seawater desalination, all of which involve an approximate investment of US$ 1.2 billion.
"At PROINVERSIÓN we are working to ensure that all our processes are conducted with transparency and professionalism, in line with our objective to technically lead the processes of promoting private investment, with special emphasis on the structuring and transaction of the projects", said Rafael Ugaz, when he invited investors to participate in this and other projects currently being promoted by the entity.

PROJECT

The Puerto Maldonado WWTP project focuses on the design, financing, construction, rehabilitation, expansion, operation and maintenance of the municipal wastewater collection, treatment and disposal systems in the city of Puerto Maldonado. Under the PPP model, the focus goes beyond construction, as it ensures the sustainability of the service during the concession period, thus allowing for the adequate operation and maintenance of the primary collection and treatment system of wastewater, with high quality standards, avoiding the contamination of the Tambopata and Madre de Dios rivers.

“The Puerto Maldonado WWTP project will activate the execution of other activities of the Ministry of Housing, Construction and Sanitation, including a Storm Drainage Improvement Project and the Large Cities Program, where the objectives are to expand the coverage of water, drainage and storm drainage services to more people in the city," said the Project Manager of the Puerto Maldonado WWTP, Juan Pablo Mendez.
The estimated investment in works, not including VAT, amounts to S/ 180 million, and the concession term is 22 years and 6 months (a maximum term for the design and construction of the works of 3 years and an operation and maintenance term of 19 and a half years is estimated).

Juan Pablo Méndez detailed that the remuneration to the concessionaire will be made through quarterly payments, under the modality of Available Payment, with the recognition of the investment, during the first 15 years of the operation period, as well as the cost of operation and maintenance, during the whole operation period.
"The co-financing granted by the Peruvian State, through the Ministry of Housing, Construction and Sanitation (MVCS) recognizes 100% of the payment of the investments. While the costs associated with the operation and maintenance component will be assumed by EMAPAT, with the guarantee of the MVCS", he said.

He added that this payment mechanism creates the necessary incentives to ensure the availability of the works in the planned time and in optimal operation for the fulfillment of the Levels of Service.
"The promotion process of the Puerto Maldonado WWTP project is being conducted according to the planned schedule. Therefore, on December 28th the deadline for pre-qualification of bidders will expire. The project has attracted a lot of interest, the market has responded well and we aim to award the project in April next year," said Juan Pablo Mendez.

Finally, the Tender Documents are available at the following link: www.proinversion.gob.pe/ptar-puerto-maldonado, which include the procedure of the tender, the prequalification requirements, the guarantees to be submitted, the selection criteria, as well as the schedule of activities of the promotion process.
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