The Río Santa consortium, formed by Odebrecht Participacoes e Investimentos S.A., Constructora Norberto Odebrecht S.A and Graña y Montero S.A.A., has signed the contract to carry out the third phase of Peru's Chavimochic irrigation project.

The consortium will co-finance, build, operate and transfer (BOT) the irrigation infrastructure Chavimochic project during 25 years. The contract was awarded in December 2013.

According to Peru's private investment agency, Proinversión, the consortium offered cofinancing US$373 million of the project: a retribution of US$25 million for investments, and an annual retribution of US$8 million for operation and maintenance of the asset.

The project's total investment is estimated to be US$591 million. Note that the final value of the investment will be known after the approval of several technical documents, one year after the signature of the contract.

The project will bring the irrigation of 63 000 hectares of new land and will also improve the irrigation of another 47 thousand hectares in the northeastern La Libertad region.

Latin American Development Bank (CAF) announced on December 3rd the approval of a US$303.8 million loan in favor of Peru to finance the third phase of the project.