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| Sedapal |
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| Summary of Proposed Investment |
| This Summary of Proposed Investment is prepared and distributed to the public in advance of the IFC Board of Directors’ consideration of the proposed transaction. Its purpose is to enhance the transparency of IFC’s activities, and this document should not be construed as presuming the outcome of the Board decision. Board dates are estimates only. |
| Project number | 28741 |
| Company name | Servicio de Agua Potable y Alcantarillado de Lima S.A. |
| Country | Peru |
| Sector | Utilities |
| Environmental category | B |
| Department | Sub-National Finance |
| Status | Pending Approval |
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| Date SPI disclosed | October 16, 2009 |
| Projected board date | January 8, 2010 |
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| View Environmental & Social Review Summary (ESRS), click here |
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| Overview |
Sponsor/Cost/Location |
Development Impact |
Contacts |
Attachments |
| Project description |
| The Project consists in the construction of the Huachipa water intake (Rimac River) and treatment plant (north network and complementary works) in the District of Lurigancho-Chosica towards the eastern boundary of the Lima province. Thirty percent of construction has been completed to date and the rest is expected to be finalized by December 2010. The Huachipa Consortium led by the Brazilian firm Construcoes e Comercio Camargo Correa is implementing the project, and the Nippon Koei Cesel Consortium is the supervision engineer. |
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| Project sponsor and major shareholders of project company |
| SEDAPAL is the water and wastewater utility serving the metropolitan area of Lima and Callao in Peru, with a total population served of over 8.5 million. It is a SOE incorporated under commercial law, with a single shareholder (FONAFE), a Central Government Holding Company. It is registered with the Lima Stock Exchange and all company disclosures including financial statements are available online. SEDAPAL has recently signed an agreement with CAF to receive technical assistance on best practices in corporate governance. |
| Total project cost and amount and nature of IFC's investment |
| Total project cost is $270 million, financed with long-term concessional loans from Japan International Cooperation Agency (JICA), Corporación Andina de Fomento (CAF), and by SEDAPAL’s own resources. SEDAPAL has shown interest in a short-term facility (up to 1 year tenor) from IFC for up to $65 million to overcome short term liquidity constraints due to the accelerated timetable of the Huachipa project. |
| Location of project and description of site |
| The project will benefit the population of Lurigancho-Chosica, San Juan de Lurigancho, Independencia, Comas, Carabayllo, Puente Piedra, San Martín de Porres, Los Olivos and part of Callao, by improving water availability per day and adding new connections to the network. The total population of the affected districts amounts to 2.4 million people. |
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| Anticipated development impact of the project |
Improved water and sanitation services for 2.4 million people, most of them low income in underserved areas with little to no water service.
Increased potable water supply to the growing metropolitan area of Lima. The supply of drinking water in Lima and Callao will increase by 25% from 20.5 m3/sec. to 25.5 m3/sec. ensuring improved water service in the poor areas where potable water is currently available only for part of the day.
Reduction of infant mortality in the area benefitted by the project. |
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| IFC's expected development contribution |
| The proposed IFC investment would complement the two past World Bank operations, and the new Bank loan under preparation, by helping SEDAPAL meet its investment timetable. IFC would complement IBRD’s due diligence by adding a focus on financial sustainability. Parallel technical assistance administered through PPIAF SNTA would be available to strengthen SEDAPAL’s financial management capacity and assist in the credit rating process in preparation for the bond issue planned for 2010. |
| Environmental and social issues - Category B |
| The project is a category B investment according to IFC’s Environmental and Social Review Procedure. A summary of IFC’s environmental and social review findings for the project including the rationale for the B categorization is publicly available in the Environmental and Social Review Summary (ESRS) disclosed through IFC’s external website. |
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| For inquiries about the project, contact: |
Mr. Juan Calderón
Operaciones Financieras, Sedapal
jcalderon@sedapal.com.pe
Direct Telephone number: 511-317-3173
Sedapal Telephone number: 511-317-3000 |
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| For inquiries and comments about IFC, contact: |
General IFC Inquiries
IFC Corporate Relations
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384
E Mail: Webmaster |
| Local access of project documentation |
The Environmental and Social Review (ESRS) is available to the public at the offices of
Sedapal,
Autopista Ramiro Prialé No 210,
Lima 10,
Perú. |
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