External Cooperation
Multilateral financial institutions including the World Bank, the Inter-American Development Bank, and the Andean Development Corporation (CAF) as well as bilateral cooperation agencies (the German KfW and GTZ, the Canadian CIDA, and the Japanese JICA (ex-JBIC), among others) play an important role in investment financing and in technical assistance in the sector.
Assistance to segments of the sector, differentiated by the size of localities, is provided by different donors:
- The World Bank provides support to rural areas as well as to small towns with populations less than 30,000 through the PRONASAR (see above).
- Larger towns and small cities — such as Ayacucho, Cajamarca or Puno — receive support from KfW.
- Larger cities — such as Tumbes, Piura or Cusco — receive support from KfW, IDB and JICA.
- The CAF, the World Bank, and the JICA support SEDAPAL in Lima and Callao.
An example of this support is the agreement signed in September 2009 by the Japan International Cooperation Agency (JICA) to provide a loan for up to $60 million for the North Lima Metropolitan Area Water Supply and Sewerage Optimization Project. The purpose of the project is to improve the quality of water and sanitation services by renovating the water supply network and improving its operation and management. It aims at reducing non-revenue water and increasing the continuity of water supply. The project complements another JICA-supported project to build a water treatment plant, water distribution systems, and sewerage systems in marginal areas of the same place.
Read more about this topic: Water Supply And Sanitation In Peru
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