Peru: Wastewater Management and Circular Economy

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The project (Phase I) comprises two main components: (i) Infrastructure and (ii) Governance and Project Management. The Infrastructure component focuses on the rehabilitation and expansion of water supply and sanitation (WSS) infrastructure in the Lake Titicaca and Lurin basins. This includes retrofitting designs and executing works for the drinking water and sewer networks in Puno, developing engineering designs for seven wastewater treatment plants (WWTPs) in the Lake Titicaca and Lurin basin, and implementing a Managed Aquifer Recharge (MAR) pilot in the Lurin basin. The project aims to enhance climate resilience, service efficiency, and sustainability by integrating circular economy principles, reducing non-revenue water (NRW), increasing energy efficiency, and reducing greenhouse gas (GHG) emissions. Project Management will finance goods and services for implementation support, including technical assistance and administrative support for M&E, procurement, FM, and E&S management. Meanwhile, the Governance component aims to support the implementation of the WSS circular economy roadmap at a national scale. This involves strengthening the capacity of key institutions under the Ministry of Housing, Construction, and Sanitation (MVCS) to incorporate circular economy principles in infrastructure design and service delivery. The component will also build the capacity of selected utilities to manage WSS infrastructure services and create an enabling environment for scaling up initiatives aimed at reducing NRW, increasing energy efficiency, and reclaiming and reusing water. The project will ultimately enhance climate adaptation and mitigate the climate impact of WSS service delivery.