Ministry studying PPPs for two provincial water utilities

Friday, December 2, 2011

Peru's housing, construction and sanitation ministry (MVCS) will consider reintroducing public-private partnerships (PPPs) to manage provincial water utilities, according to MVCS minister René Cornejo.

"We're studying the case of utilities from two areas, including Pucallpa (Ucayali region) and Piura, at the request of local authorities. We will evaluate the possibility of doing some sort of PPP," Cornejo told state news agency Andina.

The two utilities would not opt to be concessioned, but would sign management contracts with private investors, according to Cornejo.

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The country has a history of operating water utilities through PPPs. In 2005, private investment promotion agency ProInversión awarded the concession of Tumbes water utility to a consortium comprised of Latinaguas and Concyssa, which later started the company Aguas de Tumbes.

At the moment, Peru is using mainly public finances to strengthen the country's 60 utilities, Cornejo said.

MVCS aims to prioritize investment in water utilities under government programs such as Agua para Todos (water for all), as well as increasing their responsibilities in local projects.