US$250 million wastewater concession tender launched in Peru

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US$250 million wastewater concession tender launched in Peru

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Peru's Private Investment Promotion Agency (ProInversión) has launched the tender for the design, financing, construction, operation and maintenance of a wastewater treatment system for the Lake Titicaca basin, located in Puno, in the south-east of the country. The project has an estimated total investment of PEN840 million (US$255.5 million)

The system will consist of ten wastewater treatment plants in the Puno region, to be located in Puno (city), Juliaca, Ilave, Ayaviri , Juli, Moho, Azángaro, Yunguyo, Huancané and Lampa. It is estimated that this infrastructure will benefit 1,175,000 residents.

Under a 30-year concession contract, the successful bidder will design, finance, construct, expand, rehabilitate, operate and maintain the main sewers, sewage pumping stations, drive lines, treatment systems and final disposal of wastewater in Juliaca, Puno, Ilave, Juli, Ayaviri and Moho, including, if appropriate, the closure of existing infrastructure.

The concessionaire will also assume operation and maintenance responsibility of existing wastewater collection, treatment and disposal facilities in Yunguyo, Lampa, Azángaro and Huancané, and provide technical support to each Sanitation Service Provider in the ten localities for the monitoring and control of the discharge of sewage from non-domestic customers to the sanitary sewer system.

Last month, three teams submitted expressions of interest (EOIs) of the project: 

  • Aguas de Puno consortium, comprised of Spanish companies Tedagua and Acciona.
  • Veolia Servicios Perú
  • FCC Aqualia

As submitting an EOI was not a prerequisite for participating in the tender, ProInversión's call is an invitation to all interested parties. For more information, see the Business OpportunityQualifications must be submitted by 15 September 2018. Prequalified bidders will be announced on 14 October 2018.

ProInversión plans to receive final bids by 26 December 2018, with a view to awarding the concession on 2 January 2019 and signing the contract with the successful bidder on 23 April 2019.

The project is intended to contribute to the reduction of diseases caused by wastewater and the reduction of the pollution of Lake Titicaca, the largest lake in South America. Through improving the infrastructure and environment of the Puno region, it is also envisaged as promoting the increase of economic activities such as tourism.

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