Water Utility Reform in Peru

A safe, reliable and inclusive provision of water and sanitation services is of key importance for sustainable development. Beyond the mere provision of infrastructure, framework conditions need to be right and service operators need to have the skills to manage and operate their water systems in a sustainable manner.

Pays/région Période Budget
01.03.2016 - 31.12.2022
CHF  14’000’000

Over the past 20 years, the Peruvian government successfully supported the municipalities and their urban water utilities in the development of new infrastructure. The 48 municipal water utilities however continue to face serious operational, institutional and financial challenges that jeopardize a safe and reliable water supply over time. The Ministry of Housing, Construction and Sanitation thus initiated a sector modernization reform process to address the root causes that limit the impact of the infrastructure investments, such as political interference, the atomization of service provision or lack of qualified staff.


The overall objective of the programme is to support the national government in its reform efforts to improve the quality and sustainability of the urban water and sanitation services in Peru.

The program contributes to this objective by means of two components: i) A co-financing of the GIZ Proagua II program that supports the recently established water authority OTASS in the implementation of the sector modernization law with exemplary water utility turnaround activities and with technical assistance for the scaling up of the reform process- and ii) a technical assistance fund that supports the three key public sector actors OTASS, the Regulator and the Ministry of Housing, Construction and Sanitation in putting jointly the sector modernization reform objectives into practice.

Effets à moyen terme

The water and sanitation utilities of San Martin and Moyobamba are providing improved water supply and sanitation services in a sustainable manner.

OTASS carries out its regulatory functions in accordance with the Sector Modernization Law.

The Ministry, OTASS and the Regulator SUNASS, implement strategic reforms as foreseen under the Sector Modernization Law in a coordinated and efficient manner.


Principaux résultats attendus:  

Utilities of Moyobamba and San Martín have implemented the measures as defined in their Emergency Action Plans (PAU) to achieve the performance improvement targets.

Utilties of Moyobamba and San Martin have developed long-term restructuring and climate change adaption and mitigation plans.

Improved or additional procedures and tools for conducting formal initiation, implementation and evaluation of utilities under the RAT utility turnover program.

OTASS appoints competent Board of Directors and professional managers to the RAT utilities, based on clear and transparent selection procedures.

Systematization and dissemenation of good business practices.

Development of studies and tools improving the quality and coordination of sector interventions of the three insititutions.

Strengthened institutional and human resources capacities at MVCS, OTASS and SUNASS to respond to regulatory and operational needs and requirements of the utilities.

Direction/office fédéral responsable SECO
Crédit Coopération au développement
Budget Phase en cours Budget de la Suisse CHF    14’000’000 Budget suisse déjà attribué CHF    0 Budget y compris partenaires de projet CHF    30’100’000
Phases du projet Phase 4 01.07.2019 - 31.10.2023   (Phase en cours)

Phase 3 01.03.2016 - 31.12.2022   (Active)

Phase 2 01.10.2009 - 31.12.2016   (Active) Phase 1 01.01.2010 - 31.12.2022   (Active)