USD 77 Million for Drinking Water Project in Lima

(Special, July 8, 2010).- CAF executive president Enrique García and Peru’s Minister of Economy and Finance Mercedes Aráoz signed today at CAF’s head office in Caracas the loan agreement for USD 77 million, which will go towards completing the Drinking Water and Sewerage Improvement in Marginal Areas of Lima Project implemented by SEDAPAL. The project includes the construction of the Huachipa Drinking Water Treatment Plant, which will provide the service to 2.4 million residents in the North and East corners of Metropolitan Lima.

Thanks to the credit, some 500,000 households in the 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 drinking water and sanitation services.

“The approval of this loan is consistent with our agenda for social development and support for the fight against poverty. The goal of this project is to improve the quality of life of low-income inhabitants living in the northern and eastern corners of the Metropolitan area of Lima, by enhancing the capacity and reliability of the drinking water supply system,” said CAF executive president Enrique García.

The works include the construction of a 10-cubic-meters-per-second intake on the Rimac River, the Huachipa Drinking Water Treatment Plant with a capacity of five cubic meters per second, as well as the construction of the 27-kilometer North Branch pipeline to bring treated water from the Huachipa plant to the northern area of Lima, to the district of Puente Piedra and five compensation reservoirs with a combined capacity of 23,000 cubic meters.

The estimated amount of the Project totals USD 270 million, 29% of which covered by CAF’s loan and the rest with local counterpart funds and other sources of financing.