3rd phase of Peru's Chavimochic irrigation project due to resume in 2024

Work on the third phase of Peru’s Chavimochic dam and irrigation project will resume in 2024, according to the agriculture ministry (Midagri). 

Minister Nelly Paredes confirmed that the tender to resume the project in La Libertad region will be held in the following months and it will be through a government to government (G2G) agreement.

Midagri indicated at the end of January its intention to resume the project through G2G agreement – a mechanism by which a country contracts goods, services and works from another government. 

According to specialists, the G2G model would be the fastest way to carry out the project, which involves estimated capex of US$818mn. The other country involved has not been announced.

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Peru’s investment promotion agency ProInversión confirmed that the fourth section of the Longitudinal de la Sierra highway will be awarded in January 2024. 

An attempt had been made to bring forward the award to 4Q23 but it was not possible. The works involve capex of US$914mn.

Project director Norman Zegarra said in a presentation with investors that the agency is collecting comments from the interested parties before structuring the final version of the contract.

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The Peruvian government is taking measures to prepare for the arrival of the El Niño weather phenomenon. 

President Dina Boluarte announced that two emergency decrees were approved that allocate a total of 1.2bn soles (US$330mn) to entities such as Midagri and the authority for reconstruction (ARCC) for preventive works.

The ARCC announced that on June 22 it will begin the contracting process for pre-investment studies for preventive works in Piura region. The projects are the Piura, Castilla and Veintiséis de Octubre storm drainage plan and the comprehensive plan for flood control in the Piura River basin