The document summarizes an investment opportunity for a public-private partnership to increase the drinking water supply to Lima, Peru. The project involves designing, financing, building, operating, and maintaining various infrastructure components, including dams, tunnels, water treatment plants, and distribution networks. A special purpose vehicle will be formed to carry out the work under a contract with the Ministry of Housing, receiving availability payments from the water utility Sedapal based on delivered water volumes. The estimated capital costs for the initial phase are $480 million.

1. HEADWORKS AND
CONDUCTION WORKS
FOR THE DRINKING
WATER SUPPLY IN
LIMA
INVESTMENT OPPORTUNITY
SEPTEMBER 2020

2. DISCLAIMER
A Project of the Government of Peru Transaction Advisory led by IFC In partnership with:
The objective of this presentation (the “Presentation”) is to present an investment opportunity in the project “Headworks and Conduction Works for the Drinking Water Supply in Lima” (the “Project”), a
Public-Private Partnership structured by the Private Investment Promotion Agency of Peru (“Proinversión”), with advisory support of the International Finance Corporation (“IFC”).
Proinversión and IFC assume no responsibility for the verification of the information in this Presentation and no representation or warranty is made as to the adequacy, accuracy, completeness or
reasonableness of this Presentation or to any of the information and data contained herein. Proinversión and IFC shall not have any liability or responsibility for any information or data contained in, or for
any errors or omissions from this Presentation or any other written or oral communications transmitted to the recipient during its evaluation of the Project.
The information contained in this Presentation shall not be assumed to be correct after its issuance. Nothing included in this document is or should be interpreted as a promise or representation about the
Project’s future development. Proinversión and IFC assume no obligation to correct or update the Presentation or the information set forth therein.
This Presentation may contain forward-looking statements, estimates, assumptions and projections prepared and provided by Proinversión and IFC and certain independent consultants in relation to the
Project. Such statements, estimates and projections are based upon data available at the time the statements were made. These are only estimates and are not guarantees of actual performance. Actual
results may vary materially and adversely from the estimates and projections contained herein. Proinversión, IFC and their consultants make therefore no representation or warranty regarding the
accuracy, completeness, reliability or reasonableness of any assumptions underlying any estimates, projections or other “forward looking information” contained herein as well as the results therefrom.
Statements contained in this Presentation describing documents and agreements are provided in summary form only, and such summaries are qualified in their entirety by reference to such documents
and agreements.
This Presentation does not constitute an offer or commitment by Proinversión and IFC, nor any recommendation with respect to the Project, and is without legal effect whatsoever. This Presentation is
not intended to provide a basis for a decision to participate in the Project and does not purport to be all-inclusive or to contain all of the information that an investor may desire. Each recipient must do its
own independent evaluation of the relevance of the information contained herein and its own independent investigation and analysis of the Project. This information and data are not a substitute for the
recipient’s independent evaluation and analysis. As this Presentation does not summarize or purport to summarize all material or relevant information related to the Project or other terms and conditions
related to the Project, each prospective investor should rely exclusively for these purposes on the representations, warranties, terms and conditions set forth in the definitive documents that will be
supplied in connection with the Project.
Proinversión and IFC reserve the right to substitute, eliminate, specify, rectify or modify any information contained in this document.
This Presentation should only be used for the purpose of informing about the Project. The use of the Presentation for any other purpose is not authorized.

3. PROJECT
DESCRIPTION

4. TARIFF
PAYMENT
Summary of the investment opportunity
Sponsor
(SPV)
PPP CONTRACT
DRINKNG
WATER
DELIVERY
Investment opportunity for a Public-Private Partnership (PPP) with the Government of Peru to design, finance, build, operate and maintain the works
required to provide 5.0 m3/s of drinking water to Lima
The Project will require the creation of a Special Purpose Vehicle (SPV), for which the partners
must demonstrate experience in financing, construction and operation of similar projects
Potable Water and Sewerage
Service of Lima
(SEDAPAL)
Ministry of Housing
Construction and Sanitation
(MVCS)
The SPV will receive Availability Payments from Sedapal for the works and services provided.
Sedapal will collect the necessary revenues from user tariffs
Users
Estimated CAPEX for Phase 1: US$480 MM + Sales Tax (18%)*
Scope:
✓ Design
✓ Finance
✓ Construct
✓ Operate
✓ Mantain
Objective:
✓ Increase the availability of drinking water to serve
the population of the upper parts of the northern,
eastern and southern districts of Lima
National
Superintendence of
Sanitation Services
(SUNASS)
SUPERVISION OF
CERTAIN FUNCTIONS
The SPV will sign a PPP Contract with the Ministry of Housing, Construction and Sanitation
(MVCS) who will act as grantor on behalf of the Government of Peru
SEDAPAL’s Collection Trust
Fund
AVAILABILITY
PAYMENTS
The SPV will sign a Services Agreement with Sedapal for the delivery of drinking water, complying
with required service levels
Supervision of certain activities in the PPP Contract by the sector’s regulator, the National
Superintendence of Sanitation Services (SUNASS)
Project assets Scope
1 Pomacocha Dam (15 MCM) Improve and operate to transfer 2.5
m3/s in dry season2 Huallacocha Bajo Dam (20 MCM)
3 Trans-Andean tunnel (10 km) Build, operate
4 Existing Huachipa I Plant (5 m3/s) Operate
5 Huachipa II Plant (two phases)
Phase 1: Build to 2.5 m3/s; operate
Phase 2**: Expand to 5 m3/s; operate
6 Huachipa Compensation Reservoir (205,400 m3) Build, operate
7 Existing North Branch w/4 reservoirs (24 km) Operate
8 South Branch w/5 reservoirs (26 km) Build and operate
9 Interconnection lines (60 km) Build and revert to Sedapal
*Sales tax during construction to be reimbursed to the SPV, as per local legislation
**Huachipa II plant expansion to 5 m3/s scheduled for 2038 (or before if required by
Sedapal)
DRINKING WATER
SUPPLY SERVICE

5. HEADWORKS AND CONDUCTION
WORKS FOR THE
DRINKING WATER
SUPPLY IN LIMA

6. Structuring Team
Lead transaction and financial advisor
TECHNICAL LEGAL
ENVIRONMENTAL
AND SOCIAL
COMMUNICATIONS

7. Division of project’s Components
Years since contract start date
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7
Phase 1 only
Component
Duration
(Months)
1A
Pomacocha- Huallacocha Bajo Dam
Conditioning
19
1B Trans-Andean Tunnel* 53
2A & 2B Operation of Huachipa I and North Branch
2C Huachipa II WTP @ 2.5 m3/s and Reservoirs 16
SouthBranch
3A Section A (Huachipa to La Planicie) 24
3B Section B (La Planicie to Sol de la Molina) 28
3C Section C (Sol de la Molina to Manchay) 42
3D Section D (Ceres Reservoir) 38
Pre-construction stage Phase 1 Construction stage
Designs, Licenses, Environmental
Impact Assessment and Financial Close Phase 2 (Huachipa II Expansion to be completed by 2038)
Length (Km) (Rounded)
Component Main Branch Tunnels Interconnection Lines
3A 10 2 6
3B 5 0 20
3C 5 4 1
3D 0 0 32
Estimated construction timeline
Details of South Branch’s scope
Rehabilitation of
Components 2A, 2B to be
performed by Sedapal.
Expected asset’s transfer
date to the Concessionaire:
January 2024
* The Availability Payments for the tunnel will be based on actual cost. The timing of the Availability Payments (partial payment during construction or total payment upon completion) is under review
Before Huachipa II is
built, some sections
of the South Branch
will distribute water
from other sources,
treated at Huachipa I

8. Payments Structure
• PPP contract term: 30 years
• For the delivery of drinking water to SEDAPAL, the concessionaire will receive 3 types of Availability Payments (AP):
1. Investment AP: Pays for Capex and financing
2. Fixed Opex AP: Pays for fixed operating costs
3. Variable Opex AP: Pays per m3 of drinking water delivered to SEDAPAL
• Each Component will have its own AP, which will begin when the corresponding works are completed
• In the case of the Trans-Andean tunnel, Investment APs will be paid according to the type of rock found during the construction phase
• Investment APs will be paid on a quarterly basis for 20 years (80 quarterly payments) for each Component
• A portion of the APs will be linked to performance, measured through Key Performance Indicators (KPIs)
• Payments for Huachipa II expansion (Phase 2) will be pre-defined and adjusted with a formula in the PPP contract
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
CAPEX AP Fixed OPEX AP Variable OPEX AP
Availability Payments Scheme (Phase 1 works only)
Some Availability Payments will
begin during the construction phase
when individual Components are
built and are available to operate,
while others are still under
construction
Note: The above graph is a schematic representation of payments, for illustrative purposes only

9. Relaunch of bidding process
(prequalification, data room
opening, publication of PPP
contract)
List of
Prequalified
Bidders
December
2020
April
2021
Note: The dates presented are indicative and subject to change
Key Dates
July
2021
Project Award

10. Contact Information
Ari Skromne
Senior Investment Officer
IFC Advisory Services in PPPs
Latin America and Caribbean
2121 Pennsylvania Ave NW
Washington, DC 20433
Tel: +1 (202) 390 1432
E-mail: askromne@ifc.org
Alejandra Gutierrez de Piñeres
Associate Investment Officer
IFC Advisory Services in PPPs
Latin America and Caribbean
Colombia Office
Tel: + 1 (202) 361 3313
E-mail: agutierrez1@ifc.org
Daniel Ignacio Arrázola
Investment Analyst
IFC Advisory Services in PPPs
Latin America and Caribbean
Colombia Office
Tel: + 1 (202) 203 8363
E-mail: darrazola@ifc.org
Alejandro Prieto
Investor Services Director
Tel: (511) 200-1200 anexo 1256
Av. Enrique Canaval Moreyra Nº 150, floor 9,
San Isidro, Lima
E-mail: aprieto@proinversion.gob.pe
Jorge Sulem
Project Director
Tel: (511) 200-1200 anexo 1380
Av. Enrique Canaval Moreyra Nº 150, floor 8,
San Isidro, Lima
Email: jsulem@proinversion.gob.pe
Carlos Saire
Technical Specialist
Tel: (511) 200-1200 anexo 1381
Av. Enrique Canaval Moreyra Nº 150, floor 8,
San Isidro, Lima
E-mail: csaire@proinversion.gob.pe
To schedule a conference call with the structuring team, please write to: Peruwater@ifc.org

11. Follow us:
ProInversión Perú
d. Av. Enrique Canaval Moreyra Nº 150, piso 9, San Isidro, Lima
t. (511) 200 1200
e. contact@proinversion.gob.pe
WWW.PROINVERSION.GOB.PE
A Project of the Government of Peru Transaction Advisory led by IFC In partnership with: