Spotlight: Sedapal’s US$500mn investment plan

Lima’s water utility Sedapal will obtain local and multilateral financing for its 2021-2026 investment program, involving 1.96bn soles (US$509mn).

Sedapal plans to keep tariffs unchanged for two years. 

“The tariff increases planned for the third regulatory year will be applied proportionally to the percentage of the Global Fulfillment Index (IGC) obtained at the end of the second regulatory year,” according to the approved tariff study.

MAJOR PROJECTS

Sedapal plans a water and sewer infrastructure expansion for 500mn soles in the Cajamarquilla, Nieveria and Cerro Camote neighborhoods. Of the total, 98mn soles will come from the Inter-American Development Bank (IDB). 

As part of the plan, it will build a 900 l/s wastewater treatment plant to benefit the districts of Lurigancho and San Antonio de Huarochiri.

According to the tariff study, Sedapal was planning a tender for this component, but the auction was canceled in December.

Water and sewerage infrastructure improvements in six sectors of Comas and Independencia are planned to demand 220mn soles. The project is in the technical file phase, but has already been approved by the housing ministry. 

It involves the construction of eight reservoirs, 70km of water pipelines, 47km of sewerage drainage, adding 2,439 household water connections, and 2,457 sewer connections.

Stage 3 of the Pachacutec-Ventanilla project involves a 420l/s wastewater treatment plant for which 181mn soles will be invested until 2024. Construction is underway, and the contract was awarded in 2019 to Acciona for 244mn soles. 

Water and sewerage service improvements are also planned in various sectors of Callao district. Investment will be 359mn soles. The project is in the technical file drafting phase and involves building 33 reservoirs, installing 23km of conduction pipelines, adding 128km of water and 151km of sewer pipelines. It also involves improving a local wastewater treatment plant. 

Overall, 1.7bn soles will be for water and sewerage improvements and expansions, 80.3mn soles for monitoring and managing underground water, 60.5mn soles for water conservation, and 101mn soles will go to disaster risk management. 

Five water utilities, among them Sedapal, plan to invest nearly 2.9bn soles (US$733mn) in the country between 2022 and 2027.