Peru seeks private investments in water, sewerage

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Monday, December 29, 2014

Peru's government will seek private investments in nationwide water and sewerage projects in 2015, a senior official said.

Peru needs public-private partnerships because the system of state water treatment entities known as EPS has collapsed, said housing, construction and sanitation minister Milton Von Hesse. The EPS only bill 25% of the water they distribute, he said.

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"All the EPS come to the ministry seeking financing for their investments, given that their incompetent management does not allow them to sufficiently finance projects," Von Hesse told state news agency Andina. "No company in the world could survive with that kind of imbalance. It means the model can't provide a solution for Peruvian homes."

Private investment will lower water bills for the most impoverished, said Von Hesse, who formerly headed Proinversión, the state agency in charge of promoting private investment. The EPS bill water at up to 5 soles (US$1.67) per cubic meter of water, while water tankers charge 25-50 soles per cubic meter, he said.

The MVCS ministry plans to build 1,600 water and sewage projects in 2015, part of the ministry's 4.938bn soles (US$1.7bn) budget for next year.