NEW – Public-private Partnership for Water System Upgrades (64-B)

Cajamarca, Peru

Cajamarca is a mid-size town located in the northern Sierra of Peru. The town lies in a close proximity of the South America`s largest gold mine, Yanacocha. There has been tension over access to potable water for Cajamarca`s residents due to the seasonal rainfall distribution and the lack of appropriate natural water capacity of the river basins. In March 2012, Yanacocha formed a public private partnership (PPP) with the City of Cajamarca and the Cajamarca Water and Sewerage Company (SEDACAJ) and agreed to provide investment to finance new water infrastructure projects in Cajamarca.

Yanacocha implemented a comprehensive water management strategy at the mine releasing 35 000 000m3 of treated effluent per year into the local river. Furthermore, as part of a proposed expansion and in order to address environmental concerns and ongoing disputes over water, it decided to extend its water management programme beyond the mine boundary.

In March 2012, Yanacocha formed a public private partnership (PPP) with the City of Cajamarca and the Cajamarca Water and Sewerage Company (SEDACAJ) and agreed to invest $13 000 000 between 2012 and 2020 to finance new water infrastructure projects in Cajamarca. This long-term investment project is administered by the Association of Los Andes Cajamarca – ALAC (a local NGO).

Intervention features:

PPP funding, Stakeholder engagement, Alternative water sources, Upgrades to potable water infrastructure