PROINVERSIÓN secures financing to complete studies of the Chinecas project

This press release was published in English using an automatic translation system

The Private Investment Promotion Agency (PROINVERSIÓN) secured financing for the completion of the pre-investment studies for the Chinecas irrigation project, after the Regional Government of Ancash approved a transfer of S/ 12.9 million in favor of the agency in application of the authorization contained in the Public Budget Law for the 2025 fiscal year.

The resources to be transferred will allow PROINVERSIÓN, through the contracted consulting firm, to complete the aforementioned pre-investment studies until the declaration of project viability within the framework of Invierte.pe. The transfer is made in compliance with the inter-institutional agreement between both entities, through which the agency is responsible for the selection, contracting and monitoring of the pre-investment technical studies, supervision and the evaluation report.

It should be noted that the pre-investment study at the profile level of the project called "Improvement and expansion of the Chinecas irrigation system in the provinces of Santa, Casma and Huarmey, Ancash Region", includes four deliverables: the work plan, identification module, formulation module and Integration module.

For the transfer to be effective, today PROINVERSIÓN and the Regional Government of Áncash signed addendum 2 to the inter-institutional agreement signed in 2023, which contemplates the transfer of regional funds for the payment of the last two deliverables, in addition to additional work motivated by the need to evaluate other locations for the project's dams, which will total five dams.

In April 2024, PROINVERSIÓN signed a contract with the “LSH Consulting Engineers SAC – Agua Energía y Minería Ingenieros Consultores SA” Consortium (Peruvian-German consortium) to prepare the pre-investment studies that will support the feasibility and investment mechanism for the Chinecas irrigation project.

Under the agreement, all PROINVERSIÓN interventions will be carried out in coordination with the Regional Government of Ancash, which will be the Project Formulation Unit during the study stage.

Benefits of Chinecas

Chinecas is an irrigation project to be developed in the Ancash region with an estimated investment of US$ 1,000 million in the initial stage, which could increase agro-industrial production by US$ 1,500 million annually and generate 150,000 new jobs.

This mega-project will expand or improve production on 103,000 hectares of agricultural land, of which 70,000 will be new land and the other 33,000 will be for improved irrigation in the valleys and inter-country areas of Santa, Lacramarca, Nepeña, Casma and Huarmey.

According to its new configuration, as part of the Chinecas project, a new main intake and reservoirs will be built to regulate the waters of the Santa River, in addition to the extension of its main pipelines to the Casma and Huarmey valleys. Currently, the project has a set of works built and in operation: two intakes on the Santa River, canals and tunnels with an extension to the Nepeña Valley.

The project's new infrastructure and the improvement of existing works will provide water all year round, which will facilitate the development of modern agriculture with a great impact on the country.