Peru improves efficiency of water and sanitation providers with support from IDB
Dec 10, 2010
Reforms will enable public utilities to expand service to 250,000 people
As part of its overall strategy to expand access to water and sanitation services, the Peruvian government plans to improve planning instruments in this sector, and to establish a long-term financing and budgeting mechanism for water and sanitation investments.
Peru also intends to strengthen the regulatory system, improve the governance and transparency of water service providers, and enhance the management capacities and performance of service provider personnel. Finally, the government plans to enhance the environmental sustainability of sector management, consistent with its broader environmental and water resource policies and regulations.
The activities are among measures Peru has agreed to carry out under a $50 million programmatic policy-based loan (PBL) approved by the IDB Board of Executive Directors for the Second-Generation Sanitation Sector Reform Program I.
A key part of the reform program will be the implementation of a more equitable system for determining water and sanitation tariffs in relation to income. Under the planned reforms, low-income households will have access to an allotment that will enable them to maintain proper hygiene at a price they can afford and are willing to pay. Households with the ability to pay will stop receiving subsidies, thereby generating an additional $150 million in annual revenues for 50 utilities regulated by the Superintendencia Nacional de Servicios de Saneamiento (SUNASS, Peru’s water and sanitation agency).
The government anticipates that these additional revenues will enable the utilities to install 50,000 new water connections, benefitting up to 250,000 people. By enabling utilities to allocate resources based on objective criteria, the reforms will help them become financially self-sustaining and more capable of investing in infrastructure and maintenance.
The $50 million IDB loan is for a 20-year term, with a five-year grace period and an interest rate based on LIBOR.
IDB Team Leader
IDB - Public Information Service
More News and Articles
Dec 04, 2023
In an effort to combat water loss, a global collaboration involving organizations from the UK, US, and Mexico is launching a long-term project in Querétaro, Mexico. Utilizing actionable AI, the initiative aims to manage and conserve water resources across 350km …
Dec 01, 2023
A microtunnel boring machine (TBM) has arrived on Elizabeth Street to help deliver one of the biggest upgrades to Melbourne CBD’s sewer network in more than a century.
Nov 29, 2023
Researchers at MIT (Massachusetts Institute of Technology) have made a groundbreaking discovery that could change our understanding of evaporation, a ubiquitous process in our environment. They found that under certain conditions, light can directly cause evaporation without the need for …
Nov 27, 2023
NEW UNITRACC Construction Site Documentation: "Rehabilitation of a DN 400 Concrete Gravity Sewer with a SAERTEX-LINER® MULTI over a Length of 69 m" (CIPP)
New construction site documentation in the renovation section of the e-learning platform: Rehabilitation of a DN 400 concrete gravity sewer with CIPP lining using SAERTEX-LINER® MULTI, type S+ Standard. The objective of this rehabilitation measure was to enhance the structural …
Nov 27, 2023
Digitising water management
Nov 24, 2023
Budleigh Salterton is a popular and picturesque seaside town situated within the East Devon Area of Outstanding Natural Beauty. Located at the start of the stunning Jurassic Coast; a UNESCO World Heritage Site recognised for its outstanding rocks, fossils and …
Nov 22, 2023
Having been in business for 86 years, Interflow has proven it knows a thing or two about longevity. Right now, that requires an all-encompassing sustainability strategy, as Richard McCarthy, Interflow’s executive general manager southern region, explained.
Nov 20, 2023
An interview with Managing Director Robert Ristow
Nov 17, 2023
Tractebel and Aurecon forge strategic partnership to revolutionize dam projects in Queensland, Australia
Tractebel and Aurecon form a strategic alliance to revolutionize dam projects in Queensland, Australia, combining their global expertise and local knowledge to meet the rising demand for dam upgrades.
Nov 15, 2023
SA Water will use horizontal directional drilling (HDD) to assist in installing a section of pipe underneath the Melbourne to Adelaide rail corridor.
Nov 13, 2023
Saudi Arabia’s visionary city, Neom, is leading the way in sustainable water solutions with the construction of a desalination plant powered entirely by renewable energy.
Nov 10, 2023
Adept Civil Group has successfully delivered on a sewer reticulation extension project at the Charlemont Rise estate.