Press Releases

IFC Helps Expand Potable Water Supply in Peru to Benefit over 2.4 Million People

In Washington:
Adriana Gomez, IFC
Phone: (202) 458 5204

In Peru:
Clara Ugarte Perrin, IFC
Phone:+ (551) 611-2521

Lima, Peru, December 15, 2009—IFC, a member of the World Bank Group, will provide $65 million to help Lima’s Sedapal build a water treatment plant that will benefit over 2.4 million low-income residents by improving reliability of their potable water supply.  This is IFC’s first subnational financing in Peru without a sovereign guarantee.

IFC’s local currency loan to the Lima water company will provide the required short-term financing for timely implementation of a $360 million project that also includes building a water intake on the Rímac
River and connecting the Huachipa treatment plant to the distribution network.  This will expand water supply to underserved communities, as in northern areas of Lima where only 37 percent of users receive 24-hour service.  Low-income residents in those areas currently pay 10 to 20 times the average Sedapal tariff for each cubic meter from informal resellers.    

“IFC’s swift response shows its commitment to supporting key projects that benefit Peru’s social and economic development,” said the President of Sedapal, Guillermo León Suematsu.  “This loan will help us address short-term financing gaps in the Hauchipa project, and complete a much-needed public utility service.”

The IFC loan to Sedapal is part of a business line jointly developed by IFC and the World Bank that provides financing without sovereign guarantees to well-run local governments and public enterprises for essential infrastructure investments.  IFC’s financing at commercial terms complements long-term sovereign loans, from the Japan International Cooperation Agency and the Corporación Andina de Fomento, and internal cash generation.

Enrique Cañas, IFC Regional Manager for Peru, Colombia, Ecuador, and Venezuela, noted:  “IFC’s support to Sedapal’s Huachipa project is consistent with our strategy to promote access to basic products and services for people at the base of the economic pyramid in Peru and the wider region.  Through this subnational financing, we are supporting Sedapal’s plan to diversify its funding sources through commercial financing.”

IFC’s financing complements the World Bank’s support to the Lima Rehabilitation and Management project for the rehabilitation of the water networks in the northern and southern areas of Lima, and the expansion of water and sewerage services in the southern and center areas of the city.

IFC’s strategy in Peru aims to improve the investment climate and support key players in Peru’s private sector that can expand services and products to underserved sectors.  IFC also focuses on expanding access to finance for micro, small, and medium enterprises.  IFC supports programs that mobilize local benefits to regions receiving royalties from extractive industries.  Since Peru became a member of IFC in 1956, IFC has invested $1.8 billion in the country’s private sector, including $529 million in syndications. For more information about IFC in Latin America and the Caribbean, visit:
About IFC
IFC, a member of the World Bank Group, creates opportunity for people to escape poverty and improve their lives. We foster sustainable economic growth in developing countries by supporting private sector development, mobilizing private capital, and providing advisory and risk mitigation services to businesses and governments. Our new investments totaled $14.5 billion in fiscal 2009, helping channel capital into developing countries during the financial crisis. For more information, visit

About Sedapal
Sedapal is the water and wastewater utility for the metropolitan area of Lima and Callao in Peru, serving a total population of over 8.5 million.  It is a state-owned enterprise incorporated under commercial law, with a single shareholder, FONAFE, a central government holding company.  It is registered with the Lima Stock Exchange.  For more information, visit