Govt eyes PPP model for provincial utilities

Wednesday, October 5, 2011

The Peruvian government is considering operating provincial water utilities outside of capital Lima under public-private partnerships (PPPs), state news agency Andina reported.

"It's time to stop supporting companies that don't provide a good service and aren't profitable. We need to change these companies," said ministerial council president Salomón Lérner Ghitis.

The central government recently reached an agreement with the Piura regional government to turn local water utility EPS Grau de Piura into a public-private enterprise, Lerner Ghitis said, noting that a similar agreement is in the works with authorities in Loreto region.

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"We're looking at starting PPPs in all regions where access to water is a fundamental problem, where a radical change is needed," the official said.

Access to water and the wastewater treatment is a fundamental part of social inclusion, Lerner added.