ProInversión studying cost of Majes-Siguas II

Thursday, March 25, 2010

Peru's private investment promotion agency ProInversión is carrying out studies to determine the costs of the Majes-Siguas II irrigation project in Arequipa before resuming the process to concession the initiative.

The agency was scheduled to receive bids for the US$235mn project earlier this week, but while three firms and two consortiums prequalified for the contract, none presented a bid. This was largely due to the project's economic aspect, according to ProInversión head Jorge León.

"This is why we need to look at our figures, and we're doing so with very high-level consultants," León told government news agency Andina.

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The results of the studies will be presented on March 31, after which ProInversión will decide the best way to proceed with the project.

Agriculture minister Adolfo de Córdova said on Tuesday that the government will consider carrying out Majes-Siguas II as a public works project.

The initiative includes construction of the 1Bm3 Angostura dam, a 16.5km water transfer tunnel and the installation of irrigation infrastructure in Pampas de Siguas and Pampas de Majes.