The World Bank will loan $20m to Peru to improve irrigation systems and modernise water resource management in the Sierra areas of the country.
The project will also modernise and rehabilitate existing irrigation systems, and develop the financial and management skills of water user boards.
The project will cost $48m, out of which $24m will be provided by the Peruvian Government, $4m will be provided by water user boards and $20m by the World Bank.
The loan will be repaid in 18 years and will include a grace period of 17.5 years with a fixed interest rate of 0.25%.
