Chincha WWTP: investors have until December 30 to submit expressions of interest

ProInversion Statement

This is an automated translation of the press release issued in Spanish

At an event aimed at investors, the Private Investment Promotion Agency - PROINVERSIÓN announced that until December 30, expressions of interest will be received for the Chincha Wastewater Treatment Project (WWTP), which will benefit more than 345 thousand residents in seven districts.

Indeed, the agency organized the “Promotion Event for the Chincha WWTP and Puerto Maldonado WWTP Projects”, where the technical, financial and legal components were presented to attract investors from the sanitation sector, project operators, builders, banks, consultants, law firms, among others.

The project, which will be awarded through a co-financed private initiative, requires US$96.5 million of investment (without VAT) and was declared of interest at the beginning of this month, which opened a window of 90 calendar days for any third party (investor) to present their expression of interest in the execution of the project.

If within this period one or more interested parties appear (in addition to the proponent), PROINVERSIÓN will develop a selection process or, otherwise (if no interested parties appear) the project will be awarded directly to the proponent ( FCC Aqualia , SA).

The objective of the Chincha WWTP is to expand and improve the wastewater treatment and final disposal service for the benefit of the residents of seven districts: Chincha Alta, Chincha Baja, Grocio Prado, Pueblo Nuevo, Alto Larán, Sunampe and Tambo de Mora, who will benefit from the reduction of diseases related to wastewater that has not been treated properly, as well as the decontamination of water, contributing to a better quality of life.

The future concessionaire will be responsible for the design, financing, construction, operation and maintenance of approximately 21 kilometers of main collection networks and pumping lines, a pumping station, two new 600-liter per second wastewater treatment plants, as well as 7.7 km of lines for the final disposal of treated wastewater.

The concession period is 24 years (four: design, financing and construction and 20: operation and maintenance) and bidders must demonstrate experience in the construction, start-up and operation of two or more wastewater treatment plants.

IMPROVEMENTS TO THE CONTRACT

The event also served as a platform to promote the concession of the Puerto Maldonado Wastewater Treatment Plant (WWTP) project, in order to attract bidders.

In this case, the improvement proposal is aimed at reducing the risks assumed by investors, without losing the advantages of developing the project under the Public-Private Partnership (PPP) modality.

The project will contribute to closing gaps, provide an efficient and sustainable wastewater treatment and disposal service, promote the decontamination of the Tambopata and Madre de Dios rivers and contribute to improving the health and quality of life of families.

It is estimated that it will benefit 120,000 residents in Madre de Dios and the investment is close to US$100 million for the installation and rehabilitation of 192 kilometers between primary and secondary sewage networks, expansion of 13,800 household connections to the drainage network, as well as building, operating and implementing the WWTP(s).

The concession period is 23 years through a PPP co-financed by the Ministry of Housing, Construction and Sanitation as grantor. It also includes the design, financing, construction, rehabilitation, expansion, operation and maintenance of wastewater collection, treatment and final disposal systems.