10:12 | Lima, Mar. 29 (ANDINA).
Peru's national sanitation authority Sunass has authorized Lima water utility Sedapal to push through a 3.32% tariff increase, a statement from the authority reads.
Back in 2010, Sunass approved a new tariff scheme for 2010-15. The document paved the way for an increase ranging between 2% and 5% - Sedapal was asking for hikes in the order of 10% - and subject to the achievement of a set of goals.
For 2013, the authority authorized a tariff increase of up to 4.1%. As Sedapal fell short of the planned targets by adding 33,842 potable water connection, 33,842 sewerage connections and 32,955 water meters, Sunass has authorized only a 3.32% increase, BNamericas.com reported.
NEW INVESTMENT PLAN
The authorized tariff increase will give the company extra resources to boost investments in the coming years.
Meanwhile, Sedapal will also be receiving from the government as much as 8.4bn soles (US$3.27bn) through 2016 to upgrade Lima's potable water and sanitation infrastructure.
The resources will finance 148 projects across the city, benefitting some 1.9mn residents and upgrading water infrastructure which is struggling to catch up with Lima's rapid development.
2012 RESULTS
The water utility, the largest in the country, posted earnings of 236mn soles in 2012, compared to a 384mn-sol net loss in 2011. Total revenues rose 12.3% to 1.38bn soles, while operating expenses remained stable at 1.07bn soles.
Production in 2012 was 682Mm3, slightly below that of 2011, and largely coming from the La Atarjea potable water plant along the Rímac river, which made up 78% of the total. Almost one third (30.7%) of production went unbilled.
(END) INT/EEP
Published: 3/29/2013