Towards sustainable water management in Peru – US$10 million world bank loan

World Bank press release No:2010/006/LAC

Washington D.C. - The World Bank approved today a US$10 million loan to support the Peruvian Government in its Water Resources Management Modernization project.

The loan is aimed at improving the management of water resources in Peru through a participatory, sustainable, multisector and basin-scale approach. For such purpose, the project will work with the national water bureau (Autoridad Nacional del Agua - ANA), the agency in charge of the Peruvian National Water Resource System and its local branches.

“We are extremely satisfied with this project,”says engineer Abelardo de la Torre Villanueva, Head of the ANA. “It will help to modernize the management of our water resources by integrating private and public sectors and the civil society in order to achieve the sustainable availability of water in the quantity, timeliness and quality required for present and future generations,” adds de la Torre Villanueva.

The Water Resources Management Modernization project will support the development of participatory plans for an integrated water resource management in the Chancay-Lambayeque, Chili and Ica-Alto Pampas basins.

De la Torre further added that “an important innovation of this project is the joint participation of public agencies, user associations, and operators of water systems in the development of the basins’ management plans. This joint approach pursues to balance the supply and demands of different users and to identify responsibilities in the implementation of coordinated actions for the conservation of water and related natural resources.”

Irrigation accounts for 80 percent of water use in Peru. The Peruvian coasts and lower areas of the Pacific basins are subject to flooding due to high rainfall levels in the upper parts of the basins, while the southern areas are more drought prone.

In addition to variations in water availability, water quality is poor due to uncontrolled discharges. Additionally, climate change is causing tropical glaciers to melt which further increases water scarcity and variability and threatens the water supply.

“We congratulate the Peruvian Government for its commitment in keeping water security as a key element for the population, a sustainable development and the environment’s conservation,” says Felipe Jaramillo, World Bank Director for Bolivia, Ecuador, Peru and Venezuela. “The World Bank will continue supporting the water sector to help establish a new water culture that puts an emphasis on the value, use and management of water resources by all social and productive sectors,” adds Jaramillo.

The Water Resources Management Modernization project will contribute to:

- Improve the sustainable, participatory and multisectoral management of water resources.
- Increase the participation of water users in the management of water resources.
- Promote cross-institutional coordination at national and basin levels.
- Reduce water quality degradation and its negative impacts on human health, agriculture and exports.
- Facilitate access to comprehensive, timely and reliable information on water resources and climate
- Increase the country’s capacity to adapt to climate change impacts.

The project amounts to US$23 million, of which US$13 million are national counterpart funds and the remaining is financed with a US$ 10 million loan. The loan has a fixed margin and an 18 year repayment period, with a grace period of 17.5 years.

Pilot projects will be developed in the Chancay-Lambayeque, Chili and Ica-Alto Pampas river basins.

For more information please contact:
In Lima: Sandra Arzubiaga (511) 615-0660
sarzubiaga@worldbank.org