📋 Tender Overview
At the initiative of the Ministry of Housing, Construction and Sanitation (MVCS), the Executive promulgated Legislative Decree No. 1620, which approves the "Law on the Universal Drinking Water and Sanitation Service" and establishes a structural and comprehensive reform of the system, in order to improve the efficiency and quality of the provision provided to users in rural and urban areas at the national level.
The regulation, approved within the framework of the delegation of legislative powers, was published in the Extraordinary Edition of the official gazette El Peruano, and modifies Legislative Decree No. 1280, Framework Law on the Management and Provision of Sanitation Services, specifically, in its name and in four preliminary titles, 74 articles and 6 complementary final provisions. among other aspects.
One of the objectives of the legal mechanism is to achieve universal drinking water and sanitation service, guaranteeing access, quality, equity and sustainability of the service; promoting environmental protection and social inclusion. It also seeks to establish measures aimed at the efficient management and provision of drinking water and sanitation service providers.
It also establishes the competencies and functions of public administration entities in the provision of drinking water and sanitation services. In addition, it establishes measures to increase the reliability of drinking water and sanitation services.
The "Law on the Universal Drinking Water and Sanitation Service" will be applied by all providers of drinking water and sanitation services in the national territory, including local governments, regional governments and public administration entities with competences linked, among others, to the provision, regulation, stewardship, supervision, inspection, sanction and financing of drinking water and sanitation services.
New structure
The regulation focuses on the structural reform of the drinking water and sanitation system through the integration of service providers, improvement of regulatory policy, as well as the strengthening and diversification of financing, articulated investment planning, and greater efficiency in the provision of services.
With the integration of drinking water and sanitation service providers, the aim is to put an end to their atomization through incentives for urban areas and associativity in rural areas, which will improve efficiency and sustainability.
Currently, in urban areas, there are 50 EPS, including Sedapal, which serve around 10.5 million people; 500 providers in small urban cities and 28,000 providers in rural areas.
The legislative decree establishes the tools for Sunass, as a regulatory body, to improve the setting of tariffs and the tariff structure based on equity and sustainability components. In this case, cross-subsidies will be improved and the figure of a smart subsidy will be incorporated.
It also provides guidelines to strengthen articulated investment planning, from the Regional Drinking Water and Sanitation Plans to the National Water and Sanitation Plan, as well as public and private financing in the drinking water and sanitation sector through public-private partnerships (PPPs), Works for Taxes (OxI), budget and public debt, income from providers (tariff), among others.
Another important aspect addressed by the reform is the efficiency of the service by implementing an adequate corporate governance of the EPS, highlighting transparency, accountability and anti-corruption policy, among others.
