Ministers approve legislation to accelerate public works tenders - Peru

Peru's ministerial council has approved a law to cut in half the timeframe for awarding public potable water and sanitation tenders, local press reported.

Together, the initiatives account for US$1.5bn in the 2009 budget.

"Normally, a tender process takes around 60 days, but with this new norm, it will only take 30 days," housing, construction and sanitation minister Nidia Vílchez said.

The new legislation will apply not only to ministries but also to regional and local governments.

Currently, 1,600 water and sanitation projects are being developed on a national level.

The measure is part of government plans to combat the global financial crisis, Vílchez said.

ADDITIONAL BUDGET

At the same time, the economy and finance ministry (MEF) has agreed to increase the budget for Lima region by 50mn soles (US$15.9mn), from the original 90mn soles, official gazette El Peruano reported.

"We are meeting with mayors to decide which projects will be channeled through this system," said president of Lima region, Nelson Chui, adding that the plan is to carry out one big project in each province.

"For example, in the case of Barranca, the mayor said he wants water and sewerage services in the bay, along the beach, because it is a tourist area, and he wants to pave the coast road up to the Panamericana highway, a project he considers a priority," Chui said.

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