Chavimochic III Water Project

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In December 2013, Consorcio Rio Santa - Chavimochic, a partnership of the Brazilian company Odebrecht (73.5%) and the Peruvian company Grana y Montero (26.7%), was awarded the 25-year concession contract to build and operate a water treatment and distribution facility, located at La Libertad region (provinces of Viru, Trujillo and Ascope). The contract was awarded by the federal regulatory agency Proinversion, and the investments were expected to benefit around 241,311 people. The sponsor was awarded the contract by offering the lowest required government funding. Besides Consorcio Rio Santa, five other bidders presented offers: Cintra/JJC; Hidalgo e Hidalgo/Dell' Acqua; Abengoa/Abeinsa/Strabag/Eren; Queiroz Galvao; and Andrade Gutierrez. The contract was signed in December 2014, and the special purpose company Concesionaria Chavimochic was set to lead the project. The total investment in the project was estimated at US$ 715 million, of which US$ 373.8 million funded by the government. In December 2013, CAF had approved a US$ 303.8 million loan to the government of Peru to fund the project. In March 2014, CAF approved an additional US$ 150 million.