Peru utility backs water project to boost 258.4-MW Huinco

The head of Lima’s water agency says electric utility Empresa de Generacion Electrica de Lima (Edegel) is to contribute US$22 million to the proposed Huascacocha water transfer project.

President Guillermo Leon of Servicio de Agua Potable y Alcantarillado de Lima (Sedapal) said the contribution by Edegel to the US$71 million project would reduce the rates of Sedapal customers accordingly.

Leon said the funding is appropriate because the Huascacocha project will increase flows in the Santa Eulalia River, enabling Edegel to increase generation at its 258.4-MW Huinco hydroelectric project. (HNN 5/30/07)

�The power station of Huinco has capacity that is used in peak hours, but would work at the same level all year, but for that it needs more water in the Santa Eulalia River that will be brought from the lagoons of Huascacocha through a trans-Andean tunnel,� Leon said in a statement released by Peru’s business financing fund, Fondo Nacional de Financiamiento de la Actividad Empresarial del Estado (Fonafe).

Fonafe said 14 private partnerships are interested in a concession to build and operate the water transfer scheme, which will supply Lima and Callao with 2.8 cubic meters per second of new water for all inhabitants.

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