Taboada Wastewater Treatment Plant

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The Taboada Wastewater Treatment Plant was a 25-year BOT to provide wastewater services under an offtake agreement with Sedepal, the state-owned utility serving Lima and Callao provinces. The project was to be implemented in three phases: an initial capacity of 7m3 per second, rising to 10.5m3 per second, and finally 14m3. The final phase was the equivalent of 1,210 m3 per day. It was to treat the wastewater produced by 4 million people from 27 districts, or roughly 56% of the population of Lima and Callao provinces and increase the percentage of treated water from 9% to 72% in those provinces. The project, together with the Huasacocha Wastewater Treatment Plant, was to treat 100% of the wastewater in the provinces. The project was awarded to ACS [Spain] in February 2009 through a competitive tender launched by Proinversion, Peru's private investment promotion agency. There were three final bidders. Bidding was based on a formula that included several variables, principally: number of months to complete the project, the amount of subsidy for capital expenditure (RPI) and operation and maitenance of the plant (RPMO). ACS was selected after submitting the lowest rate for wastewater treatment at 0.2277 soles/m3 of treated water, equivalent to 33% less than the amount established in the bidding rules. ACS formed Planta de Tratamiento de Aguas Residuales Taboada SA as the project company. The total project cost was US $149.5 million. In February 2011, ACS closed a S./942 million ($340 million) local currency bond financing for the project. The issuance used RPICAOs, certificates with payment obligations for completed construction milestons up to 2013, as collateral for the issuance. The bonds stretched the ACS payment obligations by maturing in 2025. The financing was led by BNP Paribas,and received a AAA local and BBB global rating from Fitch. The Reg S bonds had an initial coupon of 5.965%, which were to be adjusted for inflation. Operations commenced in January 2013.