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Peru to Invest Over US$3 Billion in Lima and Callao Water and Sanitation Projects via PPPs

In a major move to secure sustainable access to drinking water and improve wastewater treatment in the capital and port region, the Government of Peru has announced plans to invest more than US$3 billion in water infrastructure projects for Lima and Callao by 2030. The initiative will be implemented through Public-Private Partnerships (PPPs).

The Ministry of Housing, Construction and Sanitation (MVCS) is leading the effort, unveiling a portfolio of 11 strategic projects to be executed by the Lima Drinking Water and Sewerage Service (Sedapal). This includes the construction of seven Drinking Water Treatment Plants (DWTPs) and four Wastewater Treatment Plants (WWTPs), with a total estimated investment of US$3.099 billion.

“These investments are critical to maintaining the quality and sustainability of services in a rapidly growing urban area with infrastructure nearing capacity,” stated the Minister of Housing. “We are committed to preserving the excellence of Sedapal’s services and reinforcing its role as a leading public utility.”

The projects, selected for their high social impact and strong appeal to private investors, are expected to benefit over 4 million people. Most are currently in the technical profiling or design phase.

The initiative builds on Peru’s successful track record of PPPs in the water and sanitation sector. Notable examples include the Taboada, La Chira, and Provisur wastewater treatment plants, which currently treat 84% of Lima and Callao’s sewage—up from just 21% before their implementation. With the addition of the new facilities, wastewater treatment coverage is projected to reach 99%.

In a joint press conference with the Ministry of Economy and Finance (MEF), the Minister of Housing highlighted that this PPP portfolio is part of a broader national investment strategy aimed at closing the country’s water and sanitation gap. Altogether, approximately US$5.5 billion is expected to be mobilized over the next five years through a mix of PPPs and public funding.

Beyond Lima and Callao, the MVCS reported that 44 major sanitation projects are currently underway across 15 regions, targeting areas impacted by severe weather, conflict zones such as the VRAEM, mining corridors, and highland communities. Nationwide, the government estimates that over US$20 billion in public and private investment will be required to achieve universal access to safe drinking water and sanitation services.

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