CAF approves loan for Chamimochic irrigation PPP project in Peru

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CAF approves loan for Chamimochic irrigation PPP project in Peru

Latin American Development Bank (CAF) announced on December 3rd the approval of a US$303.8 million loan in favor of Peru to finance the third phase of the Chavimochic multipurpose water supply, irrigation and power generation project.

The third phase will consolidate the irrigation system by building works which will regulate the water flow throughout the year on the main channel that will irrigate the valleys of Chao, Viru, Moche and Chicama.

CAF President, Enrique Garcia, noted the major infrastructure will boos significantly the productivity of the agricultural and agri-business sector in northern Peru. "This project will allow exports to climb from their current level of US$ 400 million to US$ 1.2 billion."

Eight companies and consortia were qualified in mid November to bid for the water infrastructure Chavimochic project, which will be the world's largest irrigation project to be developed with the mechanism of public-private partnership.

The qualified firms are the following:

When the Chavimochic project is awarded, 63 000 hectares of new land will be dedicated to agriculture and the project will also improve the irrigation of another 47 thousand hectares. The estimated investment in new works for the project is US$715 million, including VAT.

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