Odebrecht Leads in Lima Waste Concession

The Peruvian branch of Brazil’s infrastructure outfit Odebrecht Investimentos em Infraestrutura (OII Peru) is the leading bidder in an upcoming September 9 auction to award rights to build and operate the PES830m+ ($300m+) Taboada sewerage facility in Lima, say executives at the company. OII Peru brought the idea to the city and as a result has the right of first refusal to any winning bid. The project is to be financed with roughly 10% in equity from the winning bidder, with the remainder being raised through a tariff hike, the proceeds from which will be put into a trust system that distributes the funds to the winning bidder, says the executive. The trust will feature a reserve guarantee backed by the sovereign in the event of a failure of the project. Notes issued by the trust will be denominated in soles and distributed to local investors.