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Audit Finds S/200,587 in Excess Payments at Sedapal’s Nueva Rinconada Project

Peru’s audit watchdog says Sedapal misapplied a 2019 price index to additional works, urging immediate fixes to protect the contract’s financial balance.

Overview

  • An October control milestone report covering work inspected from September 4–17 identified excess payments on Stage I, Front 2 of the S/1.666 billion expansion in Nueva Rinconada.
  • The review found 16 valuations of additional works worth roughly S/26.4 million that applied labor cost adjustments using July 2019 as the base instead of the contractual February 2021 baseline.
  • Contraloría determined the dispute board’s 2022 decision on price formulas for the main contract does not extend to valuations for additional works.
  • The July 2025 valuation for the main contract included unexecuted quantities in civil works such as reservoirs and cisterns, undermining oversight and risking unsupported payments under state procurement rules.
  • Sedapal defended its approach as consistent with the main contract parameters, while the watchdog recommended the board chair adopt corrective measures to safeguard project continuity for more than 500,000 residents in SJM, VMT and VES.