The Minister of Housing, Construction and Sanitation, Hania Pérez de Cuéllar, detailed during her presentation at the CADE Executives 2023 that 3.4 million Peruvians do not have access to drinking water and that 7.6 million do not have sanitation service.

The gap we have is 3.4 million Peruvians who do not have access to water and 7.6 million who do not have sanitation service. If we do not change the trend, the gap will not be closed for the next three generations. To achieve this we need to believe in the commitment and contribution of the private sector“, he pointed out in the panel “Partners for Peru: public-private associations (PPP) to close gaps and greater competitiveness.”

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In this sense, he highlighted that PPPs are an important option for reducing gaps, but that they must not only focus on the construction and operation of wastewater treatment plants, but must also respond to a macro strategy to cover the largest possible amount of population.

In the Large Cities strategy our approach is territorial, it is no longer a treatment plant, it is no longer a single APP. We are looking at how to make combos to be able to diversify risks, generate economies of scale and generate efficiencies. Investments must be prioritized with sincere rates and targeted subsidies”, he proposed.

In addition, he proposed that modifications be made to the PPP legislation in order to streamline the award and construction processes.

We are the proposing sector and we are beginning to work on regulatory changes and procedures, obviously in coordination with the MEF and Proinversión. We have to diversify risks, generate predictability and confidence and expand financing options. We will do this by defining clear governance, simplifying processes, we are identifying at the levels which processes do not generate value. We have to eliminate those reports that do not generate value”he explained.

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On the other hand, he indicated that the PPP project portfolio of the Ministry of Housing, Construction and Sanitation consists of 17 projects for a total investment of S/8 billion. These would benefit 7 million Peruvians. Meanwhile, there are 174 tax works projects with an estimated investment of S/1,040 million. These will benefit 525 thousand people.

APP to close gaps

During the panel, Milton von Hesse, director of Videnza Consultores, indicated that public works have multiple problems at the time of their execution. For example, he indicated that there are 35 Health projects executed under this modality that exceed S / 200 million. More than half are between 100 and 2 thousand days late in construction.

The National Rehabilitation Institute obtained viability in 2013, it has not been completed and has a cost overrun compared to the technical file of 73%. The Hipólito Unanue Hospital in Tacna obtained viability in 2015 and we have a 95% cost overrun. The Antonio Lorena Hospital in Cusco became viable in 2009 and the extra cost compared to the file is 265%. The latter is already more than 100 days late in this second stage, carried out through Government to Government, which added to the more than 1,000 days as public works… is a disaster. These are the results when we only insist on public works”, he questioned.

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In that sense, he highlighted that there are two hospitals managed by APP, Alberto Barton in Callao and Guillermo Kaelin in Villa María del Triunfo, which have very good results.

The average time to obtain an in-person appointment (in them) is 2.5 days. The average time for a telecare appointment is 1.3 days. This contrasts with all the average times of the networks managed by EsSalud”, he highlighted.

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