ProInversión awards Tumbes Emfapa concession

Peru's private investment promotion agency ProInversión awarded Friday the concession to operate Tumbes department water utility Emfapa, an agency source told BNamericas. Peruvian-Argentine consortium Latinaguas Concisa beat three other short-listed bidders to claim the 30-year concession. The winner offered an investment of US$31.4mn to upgrade basic services through construction projects in Tumbes city in a first stage over five years. This is the first time in the country's history a public service of this nature has been transferred to the private sector, ProInversión technical coordinator, Jesús Vidalón, was quoted as saying by local state news agency APN. A previously mentioned starting date for operations of September 1 is still in the schedule, the source added. Other pre-qualified groups were: Consorcio Concesionario de Aguas de Tumbes (Conalvias Técnicas Hidráulicas and Empresas Públicas de Medellín); Chilean company Hidrosan Ingeniería; Spain's Proactiva Medio Ambiente; and Colombia's Conhydra-Hidropacífico-Gecolsa. The concession will require roughly US$62mn in investment, of which German development bank KFW will provide 17.5mn euros (US$21.9mn). The state will extend 4mn euros for initial works. Emfapa serves 180,000 urban customers, providing 68% and 32% potable water and sewerage coverage, respectively.