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Cerro Verde, Sedapar Seal 2060 Water Pact Backing $1.29 Billion in Projects

The pact secures private financing for Arequipa’s wastewater services, shielding households from higher bills.

Overview

  • Cerro Verde will operate and maintain the La Enlozada wastewater plant at no cost to users, which Sedapar says averts S/20–25 in monthly charges and a potential rise from S/36 to S/57 per bill.
  • The package includes $363 million in direct water and sanitation works, a $419 million capacity-triggered expansion of 1,200 L/s via Obras por Impuestos, and up to $510 million in additional projects, totaling $1.292 billion.
  • The framework grants Cerro Verde reuse rights of up to 1.5 m³/s of treated water on an annual average as consideration for its investments and operations.
  • The convenio remains in force until Cerro Verde ends operations or December 31, 2060, whichever occurs later, with total related contributions surpassing $3 billion when prior investments and O&M are included.
  • Officials outlined near-term risk-mitigation works slated to begin within about four months, while a congressman urged the parties to publish the full text of the eighth agreement.