PERU: Technical Assistance to SEDAPAL: Investment Planning & Tariff Study

At the request of Peru's Vice Minister for Economy and Finance, the team carried out a rapid review of the tariff impact of Obras de Cabecera (an infrastructure project being structured by ProInversion with advisory support from IFC). The rapid review aims to support decision-making for Obras de Cabecera. The review included the development of a draft financial model and associated scenarios. Subsequent work focused on further development of the utility's financial model to allow for more detailed estimates of the probable impact of the proposed PPP project on tariffs in the context of the utility's planned investment program. The scenario analysis found that the impact of such a huge project as Obras de Cabecera is substantial, but the project is important for the supply of the utility to meet the major demands.