Peru Sedapal water utility restructuring

Following significant sanitation failures in Lima South, the Peruvian government announced a restructuring of the state water utility, Sedapal. President Keiko Fujimori attributed the crisis to long-standing deficiencies in infrastructure, equipment, and organizational structure. Engineers estimated that repairs to the sewage main would require approximately two months.

Former Minister of Housing Hania Pérez de Cuéllar supported the move, noting that reforms must address internal processes and project management. She suggested that while full privatization was not previously planned, the government might consider management contracts where private firms operate infrastructure while the state retains asset ownership.

Building on these efforts, Minister of Housing Mauricio Arnillas announced that the restructuring of Sedapal will commence with the appointment of a new board of directors. The initiative seeks to improve potable water and sewage services through new regulations and the reduction of bureaucratic hurdles. To support this, the government has requested legislative powers to modify the company’s management framework.

Additionally, the Ministry of Housing, Construction and Sanitation has signed a cooperation agreement with the National Superintendency of Public Registries (Sunarp) to accelerate administrative processes through technological integration, aiming to improve the execution of state projects.