Peru's ProInversión launches tender for new version of Lima Sur II desal project

Monday, January 7, 2013

Peru's state investment agency ProInversión launched a US$110mn tender for a new downsized version of the Lima Sur II desalinization project, now renamed as Provisur.

Initially proposed by British company Biwater, ProInversión has been reviewing the concession for months after a first tender was canceled in 2012 following a veto by sanitation authority Sunass, which stated that the project was oversized.

Provisur's definitive version entails the design, financing and construction of the infrastructure needed to expand and improve water, sewerage and water treatment services in the districts of Punta Hermosa, Punta Negra, San Bartolo and Santa María del Mar, in southern Lima, according to the official tender documents published on ProInversión's website.

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In addition, the project envisages the construction of a new desalinization plant with the capacity to reach 150l/s in a first phase and up to 400l/s later on, as well as the operation and maintenance of the water treatment infrastructure in the area.

Compared to the first draft by Biwater, the project has been greatly reformed.

The number of districts to be served decreased to four from seven and now only includes the most touristic ones. As a consequence, the desalinization plant has been downsized by 10-fold from its original 1,500l/s capacity.

Provisur also appears to be a more integral project, with the concessionaire required to operate along the whole value chain of potable water supply, distribution and waste water treatment.

ProInversión is now accepting feedback from interested parties in order to come up with a definitive version of the concession contract by June 19. Sanitation authority Sunass will then review then contract and, once its definitive version is approved, bidders will have to qualify first before coming up with their technical and financial bids.