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.

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:

• Consortium Río Santa - Chavimochic, formed by Odebrecht Participacoes e Investimentos S.A.,Constructora Norberto Odebrecht S.A and Graña y Montero S.A.A.
• Consortium Cintra-JCC, formed by Cintra Infraestructuras S.A and JJC Contratistas Generales S.A.
• Consortium Chavimochic, formed by Hidalgo e Hidalgo S.A and Dell' Acqua C.A.
• Constructora Queiroz Galvao S.A. Sucursal Perú
• Constructora Andrade Gutiérrez S.A. Sucursal Perú
• Consortium Libertad, formed by Abengoa Perú S.A, Abeinsa Infraestructuras Medio Ambiente S.A., Strabag AG and Eren Inssat Ticaret Ve San Ltd. Sti.
• Consortium Dragados-Cobra-Cosapi, formed by Dragados S.A, Cobra Infraestructuras Hidráulicas S.A, and Cosapi S.A. (all belonging to ACS Group)
• Corsan-Corviam Construcción S.A.

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.