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Peru signs loan agreement with JICA for water and sewerage project

15 January 2013

Peru Minister of Economy and Finance Luis Miguel Castilla on the extreme right and JICA president Akihiko Tanaka on the extreme left after signing the agreement.

The Government of the Republic of Peru has signed two loan agreements worth a total of JP¥7983m with the Japan International Cooperation Agency (JICA) for water, sewerage and rural development projects in the country.

The loan will be used to financially assist Peru's North Lima Metropolitan Area Water Supply and Sewerage Optimisation Project (II) and the Amazonas Rural Development Project.

Peru Minister of Economy and Finance Luis Miguel Castilla and JICA president Akihiko Tanaka signed the agreements as a part of a six-project package.

Under the Lima Metropolitan Area Water Supply and Sewerage Optimisation Project, Peru's water services provider, Lima Water and Sewer Company (SEDAPAL), will use the loan to improve water supply and sewage services in the Lima metropolitan area, which is located in a desert climate and receives very less rainfall and has scarce water resources.

The project will involve laying pipes, restoring secondary pipeline networks, and procuring maintenance and management equipment to improve water and sewer services.

SEDAPAL is facing difficulty in maintaining and managing water pipelines and developing new water resources to provide sufficient purified water.

In addition, non-revenue generating water has reached 40% due to water loss and water theft, while leaking pipelines have further deteriorated water supply services in the area.

The sewer system in the Lima metropolitan area is also facing problems such as clogging and frequent breaks due to old and worn out infrastructure and an inadequate carrying capacity. These conditions result in frequent sewage outflows, pipe bursts and ground subsidence, thereby resulting in lower sanitation levels.


Image: Peru Minister of Economy and Finance Luis Miguel Castilla on the extreme right and JICA president Akihiko Tanaka on the extreme left after signing the agreement. Photo: Courtesy of JICA.