Environmental Global Market
Insights and Opportunities
Overview: In May 2008, the Government of Peru created a new Ministry of Environment. The establishment of this new agency is likely to elevate the importance of environmental protection in government policy making and lead to a greater demand for products and services designed to lessen the impact of development and commercial operations on the environment. A key focus of the new ministry is likely to be the contamination of Peruvian rivers and water supplies resulting from mining operations, particularly from informal, unregulated mining activities. The most common soil contaminants in Peru are mining tailings, petroleum-based products and other hazardous chemicals that need to be kept from contaminating drinking water. A number of major municipal water treatment projects are also under development which may afford opportunities for private firms.
The solid waste collection system in Peru is deficient, with the country experiencing serious waste disposal problems due to disorderly, explosive, urban growth of the larger cities. Lima, the capital city of 8 million inhabitants, produces 7,000 tons of solid waste per day, of which almost one third is dropped into non-regulated dumps. There are less than five operating dumps throughout the country.
Air pollution is a major problem, particularly in Lima. It is primarily generated by very high concentrations of particulate material and auto emissions.
Best Products/Services: Automatic voltage and voltage-current regulators; Instruments and appliances and machines for measuring or checking instruments; Filtering or purifying machinery and apparatus for liquids; Gate type of iron, having a pressure rating of 850 kPa or over; Rotary Positive Displacement Pumps, Nesoi; Check (non-return) valves; Pressure reducing valves; Centrifuges, including centrifugal dryers; filtering or purifying machinery and apparatus, for liquids or gases; parts thereof; and Sorting, screening, separating or washing machines.
Equipment in high demand includes soil and water remediation and monitoring equipment, filters for the industrial sector, garbage trucks, recyclers, water and sewerage monitoring devices and systems, water filters, and wastewater treatment solutions.
Opportunities: According to Government projects, the investment plan for water resources, water treatment and wastewater treatment projects through 2015 could total $2.7 billion. Some of the ongoing projects handled by Sedapal, the water and sewage agency, include: The Huascacocha water transfer project between the Departments of Junin and Pasco, consisting of a dam of 12 meters in height and 500 meters length; 36.2 Km of conducting channels; and a tunnel of 3 meters. This project was awarded to OAS (Brazil) and is a $76.9 million BOT concession.
The Huachipa potable water treatment plant awarded to Camargo Correa (Brazil)/OTV France, includes a water inlet of 10 m3/s; the first stage of a water treatment plant of 5 m3/s; 26 Km of pipes; 2 tunnels of 5 km each, and 5 reservoirs. This $248 million project will benefit 2.4 million residents in Lima and the neighboring district of Callao.
Other projects include the concession of La Chira and Taboada wastewater treatment plants (both BOT) of $342 million and $154.7 million respectively. A planned desalinization plant in southern Lima is projected to cost $285.6 million, comprising the design and construction of a 1 m3/s plant to supply water in the districts located south of Lima.