Peru's GyM eyes Lambayeque water JV

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Tuesday, April 14, 2015

Peruvian engineering company Graña y Montero (GyM) and a unit of Spain's Aguas de Barcelona are looking to invest in a public-private partnership (PPP) to provide water treatment services on Peru's north coast.

The state agency in charge of promoting private investment, ProInversión, received a proposal from the two companies to invest in a 25 to 30-year concession in Entidad Prestadora de Servicios de Saneamiento de Lambayeque (Epsel), ProInversión official Lucio Asalde told reporters.

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Lambayeque municipal authorities will take a decision on whether the proposal by GyM and the Spanish firm's Aqualogy unit is viable, Asalde said. Company officials are scheduled to meet on April 20 with the mayors of Chiclayo, Ferreñafe and Lambayeque, who are on the Epsel board, he said.

The housing and construction ministry will put up 300mn soles (US$100mn) in financing for water treatment PPPs, Asalde said.

"It will be the first meeting to explain to authorities the benefits of a PPP and clear up doubts, as it isn't a privatization," Asalde said.

The government set a 4.94bn-sol (US$1.7bn) infrastructure budget for this year, to pay for initiatives including 1,600 water and sewerage projects.

LAKE TITICACA

In other water infrastructure news, the government, together with Puno municipal authorities and Puno state water company EmsaPuno, plans to invest 6.7mn soles in a project to clean up lake Titicaca, deputy construction minister Francisco Dumler said.

Authorities will purchase a dredge and clean out water treatment ponds in Puno, Dumler told state news agency Andina. Lake Titicaca has been polluted by untreated sewage from the city.