Proinversión, the agency of the Government of Peru responsible for promoting investment and privatization, has recently announced that the Lake Titicaca sewage treatment plants project at the Lake Titicaca, one of South America's largest lakes, could be declared viable in the last quarter of 2016 as a private initiative (PI).
The Lake Titicaca sewage treatment plants project will involve the provincial municipalities of Puno, Ilave Juliaca, Ayaviri, Yunguyo, Azángaro, Juli, Huancané, Lampa and Moho. The project aims to reduce pollution that is tainting waters in the Titicaca lake.
According to local sources, once declared the feasibility of the project, there will be a period of 90 calendar days for ProInversión to perform activities promoting a private initiative (PI). The goal of Proinversión is to awake the interest of third parties to compete with the PI proposal, which would allow the process tendering.
However, if there is no interest of third parties, the project would be awarded directly to the private initiative proponent.
In 2014, Graña y Montero SA submitted an unsolicited proposal to build and operate 10 sewage-treatment plants with an investment value of US$155 million. The contract agreement had a period of 30 years and it involved the design, construction, financing, operation and maintenance of the plants.