Peru/World Bank: Improvements in Water and Sewage Systems to Reach More than 200 Thousand Residents in Northern Lima

January 16, 2015

US$55 Million in Additional Financing Will Permit Improvements in Service and to Continue Rehabilitation of Older Networks

WASHINGTON, DC, January 16th, 2015 – The World Bank Board of Executive Directors approved US$55 million in new financing today for a project that will extend the benefits of rehabilitating water and sewage networks to more than 239,000 low income residents in Northern Lima.

“This new financing builds on the results of the first stage of the project carried out in Northern Lima,” said Marco Vargas Medina, General Manager of SEDAPAL. “Improving the coverage and the quality of the sewage system and bringing running water to the most vulnerable population is the challenge we assumed previously; our commitment is to achieve good results in the coming years.”

This new phase of the “Lima Running Water and Sewage System Optimization” project will be undertaken jointly with the Lima Running Water and Sewage Service (SEDAPAL).

Alberto Rodriguez, World Bank Director for Bolivia, Chile, Ecuador, Peru and Venezuela, stressed that “infrastructure improvements to the running water and sewage systems will enable SEDAPAL to save approximately US$11 million a year as it manages to reduce the non-revenue water from 40 percent to at least 25 percent in the benefited communities”. 

This additional loan will enable the project to be expanded and to rehabilitate close to 35,000 water supply systems and 14,000 household sewage connections in underserved areas, within and nearby the districts of Comas, Los Olivos and Carabayllo.

These new beneficiaries will be added to 158,000 people in four districts of Northern Lima: Comas, Independencia, San Martin de Porres and Los Olivos, served by the first stage of this project.

The second stage of the project maintains the three original components:

  • Rehabilitate water supply and sewage networks.
  • Increase the efficiency of Lima’s Running Water and Sewage Service.
  • Management, follow-up and evaluation of SEDAPAL projects.

This new US$55 million loan has a fixed margin, a 4-year implementation period, a 24-year maturity period and a 5-year grace period.

Media Contacts
In Washington
Marcela Sanchez-Bender
Tel : 202 473-5863
In Lima
Sandra Arzubiaga
Tel : 51 622-2300