Announcement of Peru to Expand Lima’s Water and Sewerage Systems with Forty Million Six Hundred Thousand Dollars World Bank Loan on May 13, 1982

FOR IMME~IA TE ,~EL~ASE ;• World.Bank 1818 HStreet, N.W., Washington, D.C. 20433, U.S.A. •Telephone: (202) 477-1234 BANK NEWS RELEASE NO. 82/87 Contact: Ciro.,amarra c May 13 , 1982 (202) 477-8,;J4 - PERU TO EXPAND LIMA'S WATER AND SEWERAGE SYSTEMS WITH $40.6 MILLION WORLD BANK LOAN The World Bank has approved a $.40~6 million loan to Peru to expand the capacity of the water supply and ·sewerage ~ystems in the capital city of Lima. The loan will help finance a $93.4 million project which will provide some 370,000 persons, mainly in low-income areas, with water and sewerage services. Another 610,000 people will have the opportunity to receive these services with a small investment on their part. The Lima Water and Sewerage Service (SEDAPAL), the implementing agency for the prpject, has established a master plan for the metropolitan area with ~he support of a previous Bank Joan. SEDAPAL estimates that the project will provid~~ater supply services to 86% of the city's popu'lation and sewerage facilities to 79% by 1986, when the present population of 4.6 million is expected to grow to 5.5 million. Water works planned under the project will include the construction of a new water main, water distribution networks, extra storage capacity, 43,000 house connec- tions, and a pumping station. Sewerage works, including a distribution system, sewage collectors, and 46,000 house connections, will also be provided. About one quarter of project costs will be for the development of groundwater resources to increase water production through drilling of new wells and rehabilitation of old ones, and the establishment and improvement of infiltration galleries along the Rimac River. Technical assistance will help SEDAPAL develop a survey of water and sewerage connections to reduce water usage that is not accounted for, and to provide better water resources management. Co-financing for the project is expected to be $7.7 million. The World Bank loan Is for 17 years, including four years of grace, with interest at 11.6% a year; the loan also carries an annual commitment charge of 0.75% on undisbursed balances, and includes a front-end fee of 1.5% on the amount of the loan. NOTE: Money figures are expressed in U.S. dollar equivalents.