Commercial close achieved for Lima water concession

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Commercial close achieved for Lima water concession Water plant

Peru's Ministry of Housing, Construction and Sanitation (MVCS) and the Special Purpose Vehicle (SPV), 'Sociedad Concesionaria Desaladora del Sur S.A.', signed on May 12th the concession agreement for the provision of sanitation services of Lima's southern districts (Provisur).

The project, which was awarded on December 17th, 2013, will have a period of 25 years and an investment of US$100 million.

The Provisur water and sanitation project consists of the design, finance and build the infrastructure needed to expand and improve the water, sewerage and water treatment services in Lima's southern districts of Punta Hermosa, Punta Negra, San Bartolo and Santa María del Mar. The project will benefit 100,000 people.

The project includes a desalination plant with a 150l/s capacity in the first stage and a 400l/s capacity later on. This will be the first time that Provisur includes a desalination project in its plans.After the contract signature, the SPV will carry out the project design during a period of 18 months, an then it will start construction in a period of 24months. It is estimated that the project will start operations in 2017.

'Sociedad Concesionaria Desaladora del Sur S.A.' has been created by Spain's Técnicas de Desalinización de Aguas SA (TEDAGUA, owned by ACS Group).

TEDAGUA asked for S/34.403.640 (US$12.3 million) for the annual remuneration relative to the investment (to be paid in 15 years) and S/7.8 million (US$2.82 million) for the annual remuneration relative to the O&M.

TEDAGUA beat out competition from two other consortia:

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