(psp) in the peruvian drinking - Climate Investment Funds

SUNASS-ROLE IN THE CASE OF ATUSA:
AVOIDING CONTRACT RESOLUTION AND SUPPORTING
THE TAKING OVER BY ANOTHER OPERATOR
The first full-concession to the private sector, where the management was private and
the financing was public. ATUSA in northern Peru, in the city of Tumbes, starting in
2003-bid, ending with contract signed in 2005. ATUSA proposal was aggressive (30%
below the value-baseline) to win the bid, where the state-donors were co-financing the
first five-years to cover the budget, and securing a concessional-loan with grants
component. If successful, it was a model to replicate nation-wide.
This aggressive proposal, never worked out, and the operator did not meet contractual
management goals. Local population, the press, governor and majors were divided, in
favour of and against of while the foreign-operator was . It was not sustainable.
SUNASS to prevent the contract-resolution, made the following:
a) Meeting with financiers (KfW) and authorities (congressmen, majors, governors and
mnisters); b) Identifying 19 new operators and supporting it’s due diligence in the EPS-
WUC with transparency; c) Giving confidence to new operators (letter of intention,
international conference calls, meetings with its financial team, etc.), d) Securing to
stakeholders that the new operator will make it better; e) Approving the tariff-PMO for
the next five-year period, including an investment plan and goals discussed with the
new operator; f) Recognising that is a management rather than concession deal.