San Jerónimo de Cusco Wastewater Treatment Plant Expansion Fully Funded by State

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PROINVERSIÓN has reported that the Expansion and improvement project of the San Jerónimo de Cusco wastewater treatment plant (WWTP) will be 100% financed by the State through the Ministry of Housing, Construction and Sanitation (MVCS) in Peru.

With an estimated investment of PEN176.5 million (US$47 million), the entire funding for this project comes from the ministry, ensuring that service users will not bear any costs associated with it. Moreover, there will be a commitment to refrain from raising rates for the wastewater treatment service within the city. The San Jerónimo WWTP will continue to be owned by the State, with the concession granted to the private sector being a temporary arrangement for the concessionaire to undertake the responsibilities of designing, financing, constructing, operating, and maintaining the project in a sustainable manner.

Upon the conclusion of the concession period, the State will assume control of the improved and expanded San Jerónimo WWTP for management by EPS SEDACUSCO SA. Presently, the facility is operating at its maximum capacity, treating up to 580 liters/second. However, due to the population growth in Cusco, it is receiving flows exceeding 800 liters/second.

The Provincial Municipality of Cusco has delegated the project's execution to MVCS through the Public-Private Partnership (PPP) modality, a responsibility assigned to the state agency PROINVERSIÓN, which serves as the promoter of private investment. Consequently, PROINVERSIÓN is presently overseeing the process, with plans to declare interest in Q1 of 2024 and subsequently award it to a private entity. The concession contract will regulate various aspects, including odor treatment, energy cogeneration, and remote operation, among other components.

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