SEDAPAL Preparing for the Future

dropped

Failure

The proposed 10-year, three-phase MPA will support a comprehensive urban program that aims to improve the current living conditions of Lima’s most vulnerable and build SEDAPAL’s capacity to prepare for the future. The Program will support the expansion and improvement of WSS infrastructure in the San Juan de Lurigancho (SJL) District and neighboring areas of the San Antonio district. This infrastructure work will extend WSS connections to approximately 512,000,000 people (55 percent corresponding to current residents and 45 percent to the expected population growth for the 10 years of the Program’s implementation). The 820,000 residents of SJL that are currently connected to SEDAPAL’s network will also benefit from the rehabilitation and retrofitting of SJL’s WSS infrastructure, which will result in an improvement of the reliability and resilience of the services. The Program will also help SEDAPAL improve its managerial and financial autonomy and therefore its agility and ability to respond rapidly to external shocks. The Program will also strengthen SEDAPAL’s asset management capacity to improve the reliability of its infrastructure in the long run and will support SEDAPAL in its long-term transformation process by mainstreaming efficiency and circular economy principles in its interventions.The operation to be financed by the Bank (from now onward, the “project”) represents the first IPF operation or phase (of three) of this MPA. This phase will cover the majority of the Program’s large WSS infrastructure in SJL, including the replacement and expansion of the production capacity of underperforming wells feeding the SJL district, the rehabilitation, reconfiguration and expansion of the primary water transmission systems, and the construction of trunk sewer lines and sanitary sewer overflows. In addition, Phase 1 will include the initial stages of the rehabilitation and expansion of the secondary water and wastewater networks and household connections in the southernmost sectors of SJL. These activities will increase local water production capacity, improve the interconnection of water production centers (Atarjea, Huachipa and SJL wellfields) with consumption sectors, and increase local storage capacity, thus enhancing the resilience of service to the climate change–exacerbated risk of water shortages and to disruptions in the Atarjea and Huachipa plants associated with potential flooding along the Rimac’s riverbanks. The proposed works will also result in an increase of the redundancy of sewer trunk lines, increasing evacuation capacity and reducing the risk of occurrence of flooding events similar to the ones registered in 2019. Finally, the rehabilitation of the water tanks and secondary water and sewer lines will result in the reduction of the vulnerability of the SJL WSS system to seismic events.SEDAPAL’s gender-sensitive citizen engagement and connectivity promotion strategies will be deployed to maximize water and sewer connectivity rates in network expansion areas. These strategies will subsequently be evaluated and adjusted for their implementation in subsequent phases of the MPA. Under this first phase, SEDAPAL will also launch consulting services related to the development of: (i) a new corporate governance structure for the utility; (ii) an enhanced tariff structure, commercial strategy and long-term financial plan; (iii) policies, procedures and tools for improved asset management practices; and (iv) efficiency improvement, circularity and resilience strategies that will support the formulation and implementation of pilots and priority interventions in each of these domains. Finally, under this first phase, the Program will also support the definition and implementation of an action plan to increase women’s representation among SEDAPAL’s technical and managerial staff.The project includes the following 3 components:Component 1 (C1) includes infrastructure technical design and works to improve access to and the reliability of WSS services in the district of SJL and San Antonio, mainly: (i) the expansion and rehabilitation of the water production and transmission system to serve all sectors of the SJL district, (ii) the expansion and rehabilitation of trunk sewer lines servicing the entire district, (iii) the creation of DMAs and the rehabilitation and expansion of the drinking water distribution network and wastewater collection system in the southern most sectors of the district. and (iv) technical assistance (TA), communication campaigns, and capacity building to foster behavior change that promotes care of WSS installations and regard for the value of water. The construction/expansion of wastewater treatment plants and/or water treatment plants is not envisioned at this stage. The amount of new WSS connections to be implemented as part of the project (around 10% of the total amount planed) is not expected to require the expansion or enhancement of the wastewater (Taboada) and drinking water (Huachipa and Atarjea) treatment plants. Component 2 (C2) will focus on increasing SEDAPAL’s planning and management capacity and mainstreaming green growth concepts within SEDAPAL’s operations through the creation of the “SEDAPAL resilience framework”. It will include TA to support, inter alia: : i) corporate governance, ii) asset management, iii) financial management, iv) operational management, and v) circular economy and resilience aspects. The main outcome of the project under this component will be the implementation of strategies and ad hoc pilot projects. Pilots include specifically the implementation of district metered areas, energy monitoring and efficiency upgrades inside SEDAPAL infrastructure, and awareness campaigns and stakeholder engagements related to circular economy and resilience. No significant infrastructure interventions are expected under this component. No downstream E&S risks are expected from this component, and it will not affect the project’s current E&S risk rating. Component 3 (C3) will finance project management as well as the studies and technical designs required for the preparation and implementation of the second MPA phase. This component will also include activities to strengthen the capacity of SEDAPAL to manage the project’s E&S risk in a manner consistent with the Bank ESF by hiring new personnel, including E&S specialists as necessary.

FY17 - Water, Sanitation and Waste Management

World Bank Group

Project

Water Supply and Storage, Power Transmission, Waste Processing and Treatment, Power Generation (CCGT), Government, Commercial