US$300mn Lima water contract will go to 2nd best bid

Bnamericas Published: Wednesday, July 07, 2021

Lima water utility Sedapal's 1.1bn-sol (US$304mn) expansion and improvement contract for the Nueva Rinconada water and sewerage system will go to the second-best bid, company chairman Francisco Dumler told BNamericas. 

“The first [place] bidder failed to present the letter of guarantee, equivalent to 10% of investment within the scheduled timeframe. Therefore, UNOPS will proceed to deliver the bid to the next bidder in the tender, before [July] 28,” said Dumler.

A consortium comprising China Road and Bridge Corporation’s (CRBC) Peru branch and China International Water & Electric (CWE) will now receive the contract.

The UN Office for Project Services (UNOPS) held the auction on April 22. 

The San Miguel Consortium comprising China Machinery Engineering Corporation, 2H Ingeniería y Construcción, and Sigma Contratistas Generales initially won the contract.

But UNOPS did not proceed to the awarding stage, notifying the consortium on May 13 of the measure because it failed to present the necessary documents within eight days of winning the tender.

The consortium immediately – but unsuccessfully – appealed via procurement regulator OSCE's court, which is the highest authority on bidding matters.

The system is expected to benefit over 300,000 residents in south Lima and works should take four years.

Dumler said the project involves 1,000km of primary and secondary pipelines, adding to the existing 29,000km network, 8,500 new water and sewerage connections, the rehabilitation or replacement of 35,000 connections, 20 new reservoirs and the improvement of 15 existing ones.

Under its strategic plan, Sedapal aims to provide water and sewerage services to peripheral areas with poor access to water and sanitation, covering some 852,000 residents, Dumler said. Demand also skyrocketed during the pandemic.

Currently, 350 water trucks distribute water in these areas daily, up from 265 before the pandemic. 

"Since the pandemic began, more than 6.5Bl of free drinking water have been distributed through 650,000 vehicle trips," according to Dumler.

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