Peru’s economy and finance ministry (MEF) is likely to declare the Pisco-Seco river basin project in Ica region financially feasible in August, an official from national water authority ANA told BNamericas.

The project will require an estimated investment of some 1.01bn soles (US$368mn).

Private investment promotion agency ProInversiуn is waiting for the feasibility study, which is being coordinated by MEF and ANA, to begin the tender process for the project, a ProInversiуn official told BNamericas.

The initiative aims to address flooding and water availability issues in the river basins by transferring excess water from the Pisco river to the Seco river. Work involves building the Polvareda reservoir, to be supplied by an intake transferring 30m3/s from the Pisco river.

The reservoir will be used to improve irrigation on 25,000ha in the Pisco valley, according to the feasibility report.

Excess water will be transferred to the Seco river, helping replenish its overused aquifer. Some 10m3/s is expected to be transferred during the months of September and October.

“The study is complete. What is being discussed now is the source of financing, whether [the project] will be private-public or private, and if it’s privately financed how that investment will be recouped,” the ANA official said.

“As you know we’re undergoing a change in government and we’ll see in August what the new government’s criteria will be for this project, if the feasibility isn’t granted in July. I think the people at the economy and finance ministry aren’t ready to approve it sooner,” the official added.

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