Provisur

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In December 2013, Tecnicas de Desalinizacion de Aguas S.A (Tedagua), a subsidiary of the Spanish company ACS, was awarded the 25-year concession contract to design, finance and build the infrastructure needed to expand and improve the sewerage and water treatment services located in Lima’s southern districts of Punta Hermosa, Punta Negra, San Bartolo and Santa María del Mar, Peru. The project included the construction of a new desalination water facility with capacity of 400 liters/second. Besides Tedagua, three other bidders took part in the bidding process: Aguas de Lima Sur (Acciona Agua and Graña y Montero), JJC Contratistas Generales and GS Inima Environment. The bidding criteria was the lowest payment required for the investment and operating costs. The Provisur (Provision de Servicios de Saneamiento para los Distritos del Sur) project was set to benefit around 100,000 people. The project was promoted by the MVCS and SEDAPAL and was awarded by Agencia de Promocion de la Inversión Privada (Proinversion). In May 2014, the 25-year concession contract was signed with El Ministerio de Vivienda, Construccion y Saneamiento (MVCS). The sponsor established the special purpose company Sociedad Concesionaria Desaladora del Sur S.A to lead the project. Acconding to the contract, the sponsor agreed to receive a payment of US$ 12.3 million per year during the first 15 years of the contract for its investment disbursement and Euros 2.82 million per year during the life of the contract for its operational costs. The investment in the project was estimated at US$100 million. In April 2016, the project reached financial closure when the state-owned utility Sedapal approved a financing of US$ 100 million. Construction works started in 2015 and commercial operations were scheduled to commence in the beginning of 2018.