Japanese ODA Loan Agreement with Peru Efficient Water Use in Arid North Lima
1. On September 28, 2009, JICA (President:Sadako Ogata) signed an agreement with the Republic of Peru to provide a Japanese ODA loan of up to 5.55 billion yen for the North Lima Metropolitan Area Water Supply and Sewerage Optimization Project (I).
2. This project will divide the North Lima Metropolitan Area into water supply sectors, each of which will have its water supply quantity, water pressure, chlorination and the like controlled to ensure an efficient management, operation and maintenance. In addition, both the water supply and sewer network will be renovated, including improvements to decrease the non revenue water ratiot , thereby increasing the efficiency of water use and extending the hours available of that water service. It is expected that this project will improve the quality of water services as well as sanitation for residents. The loan will be allocated for renovation of the water supply network as well as consulting services.
3. Nearly two-thirds of Peru’s population is concentrated in the Lima Metropolitan Area, the political and economic center of the nation, but this region has a desert climate, receiving a scant 10 millimeters of rain per year (in contrast to the 1,400 millimeters of Tokyo). Given the extremely limited nature of water resources and the population increase in recent years, providing adequate water is a severe issue particularly during the dry season. Another major issue is that the non revenue water ratio is at least 50 percent in the north part of the Metropolitan Area since the entire water supply situation is not ascertained in areas where degrading water pipes are causing leaks, water meters are aging or are inadequate in number, and the water systems are inadequately maintained and operated. Because valuable water resources are thus not being used to their fullest extent, a stable supply of water cannot be provided. Furthermore, leakage due to aging and broken sewer pipes is causing environmental damage in the forms of ground subsidence and sewage release. Improvements to the water systems in the northern part of the Lima Metropolitan Area are thus urgent.
4. To supply water to the Lima Metropolitan Area, JICA is currently providing support under the Lima Marginal Areas Sanitary Improvement Project for a water purification plant and laying new water pipes with a Japanese ODA loan . Because the region covered by this project is included in the service area of the purification plant, the two projects are expected to work synergistically.
5. JICA has worked by combining variety of projects to improve water supply and sanitation of Peru, which is one of the prioritized development issues of the country. With regard to water and sanitation, one of the Millennium Development Goals is to, “Halve, by 2015, the proportion of people without sustainable access to safe drinking water and basic sanitation.” JICA will continue to pro-actively support the efforts as a part of the international community.
1. The proportion of supplied water for which use charges are not collected due to reasons such as leakage from the pipes or illegal water connection.