Peru, Lima: Ministers propose decreased tariff hike for poor sectors

Peru’s ministers council (PCM) has proposed a new potable water tariff scheme based on users’ socioeconomic status, according to official gazette El Peruano.

The scheme, which would involve increased subsidies for poor areas, aims to mitigate the effects of a proposed tariff hike by national sanitation authority Sunass, according to PCM president Javier Velásquez Quesquén.

Sunass has proposed raising water rates by 2%. Lima’s state water utility Sedapal, however, said that water rates must go up by 10.26% to fund initiatives such as the Huascacocha water transfer project and Taboada and La Chira wastewater treatment plants.

“Someone from sector D or E will consume more or less 10m3 per month, so we can’t burden them with a 10% tariff increase,” said Velásquez Quesquén.

PCM is now discussing the rates with Sunass and Sedapal, according to the report.

Source: BNamericas.com [subscription site], 31 Mar 2010

Peru: Resignation of Guillermo León over corruption allegations

In January 2010, the president of Sedapal, the state water utility agency, Guillermo León, was accused of too easily awarding a 13.6 million soles ( US$ 4.75 million) contract to TFKC Reprex in December 2008, a company formed just one month prior to the controversial contract selection as a representative of Brazilian Puritech. The contract was awarded for the construction of two waste water treatment plants in San Bartolo, southern Lima.

Following the controversy, Guillermo León resigned from his post as the president of Sedapal.

The scandal has led to suspicions of corruption in other tenders worth some 700 million soles (US$ 245 million).

Sedapal workers’ union head Henry Viera highlighted the need for an independent third party to oversee tender processes.

Source:  Peruvian Times, 12 Feb 2010 ; BNamericas.com [subscription site], 11 Feb 2010 ; BNamericas.com [subscription site],

Peru: Sedapal to raise water rates on industries that pollute

Peru’s state-owned water and sewerage utility Sedapal, serving capital Lima and neighboring Callao, will raise water rates on companies that pollute beginning in January 2010. The rate hike will apply to companies that dump toxic waste into the sewerage system, which leads to greater deterioration in the network.

The announcement was made by the president of national sanitation authority Sunass, José Salazar. In 2008, Sunass said various industries were increasing the rate of deterioration in the sewerage system, but their rates were the same as domestic customers.

In conjunction with the national industries association (SNI), Sunass has completed the design of the new tariff system which includes rate increases for companies that do not invest in improving their wastewater treatment. In addition, firms that contaminate more will pay more.

Sedapal must now implement the software necessary to start using the new system.

Local development bank Cofide will provide small and medium-sized companies with up to 50% of the investment needed to improve wastewater treatment.

Source: BNamericas.com [subscription site], 30 Sep 2009

Peru, Lima: using carbon bonds to finance wastewater treatment

The Andean Development Corporation (CAF) and Peru’s state water utility Sedapal have signed an agreement to start a pilot project at the Carapongo wastewater treatment plant, in Lima’s Ate Vitarte district. [...] Sedapal has bought equipment to burn the methane gas that is produced at the facility. CAF will assist with studies related to the sale of carbon bonds, generated by the reduction of greenhouse gas emissions. The entity will also try to identify potential buyers for the carbon bonds [...] under the Kyoto Protocol’s clean development mechanism [CDM] or other markets for the reduction of greenhouse gas emissions. The sale of carbon bonds would help to finance the project

Source: BNamericas [subscription site], 16 Apr 2009

Peru, Lima: Sedapal to build wastewater treatment plant for irrigation

Peru’s state water and sewerage utility Sedapal, serving Lima and neighboring Callao, will sign an agreement with the Pueblo Libre district to build a wastewater treatment plant [that will] irrigate the district’s green areas with treated water instead of polluted water from the Surco river.

“Pueblo Libre will be the first ecological district in the city and its parks and gardens will be 100% watered by treated water,” [utility president Guillermo León said].

Source: BNamericas [subscription site], 27 Jan 2009

Peru, Lima: Govt to invest US$52mn in water, drainage project

The president of Peru’s ministers council, Yehude Simon, announced that the biggest water and drainage project in the country will be carried out in Ate district, in Lima’s metropolitan area, with an investment of 165mn soles (US$51.8mn). [It will] benefit [an estimated] 65,000 inhabitants in [...] marginal and low-income communities, the report said. State water and sewerage utility Sedapal, serving Lima and neighboring Callao, said the contract to begin works will be signed on February 20, [2009]. Works include digging wells [...] as the area is too far from the La Atarejea potable water plant to use its resources.

Source: BNamericas [subscription site], 27 Jan 2009