public private partnerships (ppp)...s/49.5 billion there is a significant infrastructure gap. to...
TRANSCRIPT
Julio Kosaka
Public Private Partnerships (PPP)
September 2020
Viceminister of Construction
and Sanitation
Diagnosis of Sanitation Services in Peru
ACCESS TO WATER 1/ ACCESS TO SANITATION 2/
1/ Includes water supply by public network inside the home, public network outside the home but inside the building and a basin for public use.
2/ Includes the connection of the toilet to the public network inside the home, public network outside the home but within the building and latrine (by direct observation).
29.4 M
3 M
25 M
7.4 M
71.2 72.2 74.4 75.6
94.5 94.4 95.3 94.9
89.289.4 90.7 90.8
2016 2017 2018 2019
Rural
Urbano
Nacional
24.6 24.3 29.0 28.3
88.3 88.9 90.2 90.4
73.774.5 76.8 77.2
2016 2017 2018 2019
Rural
Urbano
Perú
With a population of morethan 31 million inhabitants,Peru is the 4th most populouscountry in South America.
The services arenot sustainable.
3 Million (9%) of Peruvians without access to waterthrough the public network.
7.4 Million (23%) of people do not have access tosewers or sanitary disposal of excreta.
Only 44 % of the wastewater captured by the SanitationService Providers (EPS) enters the WWTP and hasadequate treatment (*).
Source: INEI National Survey of Budget Programs ENAPRES 2019, ENDES 2019.* DGPRCS 2020.
6
19
5
5
77% of the population live inurban areas, while 23% live inrural areas.
S/49.5Billion
There is a significant infrastructure gap. To achieve universal water and
sanitation coverage, a total investment of S/ 49.5 billion is required.
Source: The National Sanitation Plan 2017-2021 (MVCS)
Sanitation Investment Gap
INVESTMENT AREA TOTAL S/.%
PARCIAL TOTAL
Extension of coverages 39,717,172,819 80.1%
Potable water 5,815,631,950 14.6%
Sewarage 26,145,111,816 65.8%
TAR 7,756,429,053 19.5%
Rehabilitation and Improvement
8,004,673,970 16.2%
Potable water 4,176,609,563 52.2%
Sewarage 3,828,064,407 47.8%
Business Strengthening 1,431,655,404 2.9%
Micro measurement 390,326,139 0.8%
TOTAL 49,543,828,332 100%
Sanitation Investment per Government level (Million of Soles)
YEAR
TOTAL DOMESTIC
INVESTMENT 2/
INVESTMENT IN SANITATION
NATIONAL GOVERNMENT
REGIONAL GOVERNMENT
1/
LOCAL GOVERNMENT
1/
2009 18,908 2,099 121 420 1,5592010 22,991 3,046 139 653 1,767
2011 21,743 3,490 160 891 1,9062012 26,162 3,832 94 759 2,4852013 30,126 4,244 181 638 2,599
2014 31,490 4,656 151 411 3,0372015 30,482 3,369 165 286 2,3002016 26,955 3,506 160 347 2,556
2017 28,311 4,965 577 249 3,4692018 32,285 4,459 775 296 2,7522019 31,945 4,006 834 232 2,696
2020 46,947 5,179 1,258 337 3,583TOTAL 348,345 46,850 4,616 5,520 30,708
Source: OGEI-OGPP -MVCS
Sanitation Service Providers (EPS)
0.00
10000.00
20000.00
30000.00
40000.00
50000.00
2009 2011 2013 2015 2017 2019
Total Inversión Nacional 2/ Inversión en Saneamiento
2020
Diagnosis of Wastewater Treatment in Peru
Discharge with treatment
44%
Wastewater discharges
22 EPS without wastewater treatment.-19 EPS do not have a Wastewater Treatment Plant.-03 EPS do not treat wastewater
2228
Sanitation Service Providers (EPS)
EPS Management Total
Municipalities (No RAT) 26
OTASS (RAT) 19
* In the process of entering the RAT 3
FONAFE (Sedapal) 1
Creditor committee – BankruptcyRegime (Grau)
1
Total 50
5 Departments with 4 or 5 EPS 6 Departments with 2 or 3 EPS 13 Departments with 1 EPS.
2228
Discharge without treatment56%
Strategies for Closing Sanitation Gaps
Public Investment (Refundable and non-refundable transfers andinternational cooperation, executing units)
The MVCS implements a series of financing and execution strategies to close gaps in sanitation services.
Public PrivatePartnerships (PPP)
Private Investment
Works for Taxes
Special RegimeWater Supply Contract (Emergency Decree N° 011-2020)
1
2
3Co-financed
State Initiative
Self-financed State Initiative
Co-financedUnsolicited
Proposal (CUP)
Self-financedUnsolicited
Proposal (SUP)
For its financing
For
its
ori
gin
PPP in Execution
LA CHIRA WWTP• Term: 25 years• Investment: USD 79,0 million (without VAT)• Average flow : 6.3 m3/s• Beneficiaries: 2.6 million inhabitants• Type of treatment: advanced preliminary• Status: In operation since june 2016
• Addendum to the contract to extend theWWTP
• Average flow: 3.41 m3/s• Investment: USD 38 million approx. CONCESSION CONTRACTS SIGNED
TITICACA WWTP • Term: 30 years• Total average flow: 1.47 m3/s• Investment: USD 180.0 million (without
VAT)• Beneficiaries: 1.2 million inhabitants• Status: In execution (Preparation of
Technical File).
PROVISUR (Provision of sanitation services in the southern districts of
Lima) • Term: 25 years• Flow: 0.18 m3/s wastewater• Flow: 0.25 m3/s – 0.40m3/s wastewater.• Investment: USD 87 million (without VAT)• Beneficiaries: 100 thousand inhabitants• Status: In execution
6
19
5
5
Lima
Puno
TABOADA WWTP • Term: 25 years• Investment: USD148 million (without VAT)• Average flow: 14 m3/s• Beneficiaries: 4.3 million inhabitants• Status: In operation since December 2013
1
PPP CONTRIBUTIONWastewater treatment: 21.96
m3/s.(does not include the expansion of the La Chira
WWTP).
The continuity of the investment is ensured
within the framework of the Budget Law 2021
with PEN 1,061,430 from the Titicaca WWTP.
2
3
4
494Million Dollars
(USD)
TABOADA WWTP - NORTHERN LIMA
LA CHIRA WWTP - SOUTHERN LIMA
PROVISUR - SOUTHERN LIMA
TITICACA – PUNO WWTP
CHILLÓN WWTP – NORTHERN LIMA
PPP contribution to closing gaps in sanitation services Lima- Callao
Source:Benchmarking SUNASS (2010-2018)http://www.sedapal.com.pe/indicadores-de-calidad-del-servicio, March 2020.
Source:http://www.sedapal.com.pe/tratamiento-de-aguas-residuales, August 2020
20.74
20.65
21.27
51.25
71.71
75.9579.72
92.39
92.2
90.85
90.37
10.00
20.00
30.00
40.00
50.00
60.00
70.00
80.00
90.00
100.00
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 I Trim -2020
Wastewater Treatment (%)Sedapal S.A.
TABOADA WWTP(Operation begins 04/13)
LA CHIRA WWTP(Operation begins 12/16)
SEDAPAL
11.1253%
5.8828%
3.8519%
PPP contribution in wastewater treatment
PTAR Taboada PTAR La Chira Otras PTARs Sedapal
Total flow treated average.
August 2020:20,85 m3/s
Taboada WWTP La Chira WWTP Other Sedapal WWTP
INVESTMENT:
PEN 6,500 MillionApróx.
PPP Project Portfolio
Concession term: from 20 to 30 years
N° Project RegionAmount
Million (PEN with VAT)
PhaseType of
PPP
1 Main works Lima 2,720.0 Structuring IEA
2 Puerto Maldonado WWTP Madre de Dios 212.55 Structuring IEC
3 Huancayo WWTP Junín ** Formulation
4 Trujillo WWTP La Libertad 589.6 Formulation
5 Cusco- San Jerónimo WWTP Cusco 192.3 Formulation
6 Chincha WWTP Ica 156.6 Formulation
7 Cajamarca WWTP Cajamarca 294.4 Formulation
8 Tarapoto WWTP San Martín 123.1 Formulation
9 Huaraz WWTP Ancash 120.4 Formulation
10 Cañete WWTP Lima 157.3 Formulation
11 Chiclayo WWTP Lambayeque 489.6 Formulation
12 Desalination Plant Ilo Moquegua 120.0 Formulation
13Community Sanitation
Services - LoretoLoreto 150.0 Formulation
14 Huacho and Barranca WWTP Lima 195.0
Planning and programming
15Huancavelica- Andahuaylas
WWTPHuancavelica-
Apurímac115.0
16Desalination Plant Paita and
TalaraPiura 576.0
17Desalination Plant
LambayequeLambayeque 230.0
AncashPTAR Huaraz
CajamarcaPTAR Cajamarca
CuscoPTAR Cusco - San Jerónimo
San MartínPTAR Tarapoto
La LibertadPTARs System - Trujillo
IcaPTAR Chincha
LimaMain worksPTAR CañetePTAR BarrancaY Huacho
LambayequePTAR Chiclayo
Desaladora Lambayeque
04
08
09
06
0711
05
01
02 Madre de Dios PTAR Puerto Maldonado
Junín PTAR Huancayo
0310
LoretoNative Communities13
14
15
HVCA-APURIMACPTAR Huancavelica-
Andahuaylas
12MoqueguaDesalination Plant - Ilo
PiuraDesalination PlantPaita and Talara
16
17
(*) Investment amounts updated as a result of advances in formulation.(**) Confidential
17Projects
7.1Million
inhabitantsapprox.
PPPs are a financing modality in the Sanitation Sector that allows the State to closethe gaps and have sustainable projects.
The PPP project portfolio for the design, financing, construction, operation andmaintenance of drinking water, sewerage and wastewater treatment will benefit morethan 20% of the Peruvian population.
The continuity of the investment is ensured within the framework of
the 2021 Budget Law of Puerto Maldonado WWTP
Beneficiaries:
CO
-FIN
AN
CED
U
NSO
LIC
ITED
PR
OP
OSA
L
Conclusions
The provision of infrastructure is advancedThe project is fully or partially financed by the private sector instead of using public resources in year zero.• The private sector recovers its investment through user fees or deferred payments
by the public sector, based on the availability of infrastructure and services.• The private sector has greater incentives to seek alternative sources of financing
such as:▪ Supplementary income▪ Reduce collection losses
tDESIGN TENDER CONSTRUCTION COST OVERRUN
MAINTENANCE
QUALITYTraditional publicwork
Co
sts
to t
he
Stat
e
tDESIGN TENDER CONSTRUCTION MAINTENANCE
QUALITY
PPP
Co
sts
to th
eS
tate
Optimal project risk allocation.
Contribution to closing the public infrastructure gap is allowed.
Predictability: in future commitments and flows
Commitmentsgenerated by
PPP
✓ Obligations to pay specific or quantifiable amounts
✓ Generated as compensation for the provisions of the contract
Strongcommitments
Contingentcommitments
✓ Potential payment obligations
✓ They are derived from one or moreevents corresponding to risksinherent to the PPP project.
They are given through long-term contracts
Average term of awarded projects: 22 years
✓ Deadline of the PPP contracts: 60 years✓ Minimum term for IPC: 10 years
PUBLIC PRIVATE PARTNERSHIPS
Conclusions and Perspectives
In response to the water stress that Peru is facing, the MVCS ispromoting the development of projects under the new potablewater supply and wastewater treatment regime, through DU011-2020, which fosters private investment, as the provider ofthese services to the EPS sanitation service companies.
Wastewater reuse and commercialization, sludge reuse, and biogas generation are significant aspects that will be included in the design of wastewater treatment projects under PPPs.
PUBLIC PRIVATE PARTNERSHIPS
The Ministry of Housing, Construction and Sanitation ispromoting a portfolio of sanitation service projects (drinkingwater, sewerage, and wastewater treatment) for more than S/6,000 million investment and benefiting more than 30% of thePeruvian population, through PPPs, for design, financing,construction, operation, and maintenance.
The private participation, through PPPs, is acomplementary mechanism to Public Works and Worksfor Taxes, which will continue to be promoted by theMVCS to close gaps in sanitation services.