US$77 Million for water supply project in Lima

(Special, July 8, 2010).– At CAF headquarters in Caracas, CAF President & CEO Enrique García; and Peruvian Minister of Economy and Finance Mercedes Aráoz today signed a loan agreement for US$77 million for completion of the works of the Project to Improve Drinking Water and Sewerage in Marginal Areas of Lima. The components of the project, to be executed by Sedapal, include construction of the Huachipa Drinking Water Treatment Plant, which will supply 2,400,000 inhabitants in the North and East Cones of Metropolitan Lima.

Thanks to the loan, approximately 500,000 households in marginal areas of the districts of Lurigancho-Chosica, San Juan de Lurigancho, Comas, Carabayllo, Los Olivos, Puente Piedra, San Martín de Porres and Callao will benefit from formal continuous access to water supply and sanitation services.

García said, "approval of the loan is consistent with our social development agenda and support for the fight against poverty. The objective of the project is to improve the quality of life of low-income residents of the North and East cones of Metropolitan Lima, by increasing the capacity and reliability of the drinking water supply system."

The works include construction of an intake on the Rimac River for a flow of 10 cubic meters per second; the Huachipa Drinking Water Treatment Plant with a capacity of five cubic meters per second, and building the 27-km North Branch conveyance line, to carry the treated water from the Huachipa plant to north Lima, as far as Puente Piedra district and five compensation reservoirs with 23,000 cubic meters capacity.

The total estimated amount of the project is US$270 million, of which 29% comes from the CAF loan and rest from local funds and other sources of financing.