Country Profile Regulation Country Dashboards Tariffs Peru is a Pacific-facing country in western South America. It borders Ecuador and Colombia to the north, Brazil to the east, Bolivia to the southeast, and Chile to the south. The country is divided into 25 regions and the Lima Province. The regions are subdivided into provinces which are composed of districts, each with an elected mayor and council. Municipalities, as local government bodies, govern provinces, districts, and smaller population centers. Country Overview Year Figure Population 2021 33,715,471 Country Area (km2) 2021 1,285,220 GDP (billion USD) 2021 223.25 GDP per capita (USD) 2021 6,621.6 World Bank Income Group 2021 Upper middle Income World Bank Region 2021 Latin America & Caribbean Source: World Bank Data - Peru Water and Wastewater Sector Structure The water and wastewater sector in Peru is fragmented and composed of different forms of services in urban and rural areas. Urban areas (cities above 15,000 people) are served by Sanitation Service Provider Entities (Empresas Prestadoras del Servicio de Saneamiento, EPs) which provide drinking water, wastewater collection and treatment, and other sanitary services. These 50 companies, all publicly owned, are distributed across 24 regions, and provide drinking water to almost 19 million people which translates to 57% of the national population. The EPs are categorized in five groups according to the number of drinking water connections. The largest one, SEDAPAL, serving the capital Lima, is in a category of its own, with over one million connections. The provision of water and wastewater services in small cities is, as a general rule, responsibility of provincial municipalities, directly or not. In 2017 sanitation services in small cities were managed by 310 service providers: 212 municipalities, 9 specialized operators, 74 community organizations and 15 of another type. Rural areas are mostly served by not-for-profit organizations that were granted authorization for service provision from district or provincial municipalities. More than 24,000 community organizations manage, operate, and maintain sanitation services in one or more populated centers in rural areas. All the aforementioned service providers are overseen and regulated by the national regulatory authority National Superintendence of Water and Sanitation Services (SUNASS). Authority Level Role Ministry of Housing, Construction and Sanitation National The governing body of the water and sanitation sector in Peru. Responsible for designing, regulating, promoting, supervising, evaluating, and executing sectoral plans and policies. National Superintendence of Water and Sanitation Services (SUNASS) National National regulatory authority for water and wastewater services, responsible for tariff setting, regulations and quality standards, evaluation of utilities’ investment plans, and sanctions, among other tasks. National Water Authority (ANA) National Responsible for formulating policies for the water resources management which are then implemented through ANA’s decentralized offices, the Water Management Authorities (AAA). These authorities then oversee Local Water Authorities (ALA). ANA also authorizes water volumes used and distributed by service providers. Environmental Assessment and Control Agency (OEFA) National Under the Ministry of the Environment, it oversees other entities that regulate wastewater discharge in their jurisdictions, including compliance with maximum permissible limits and water quality standards. Sanitation Authority (DIGESA) National Under the Ministry of Health, it sets water supply quality standards and oversees compliance with the standards. Technical Agency for Sanitation Services Administration (OTASS) National Under the Ministry of Housing, Construction and Sanitation, it helps EPs to strengthen their capacities, promotes the integration of service providers as well as their processes to become more efficient and sustainable. Local Governments Local Establish Municipal Technical Areas (ATM) to supervise and provide technical assistance to service providers in small towns and rural areas. Sanitation Service Provider Entities (EPs) Municipal Water and (mostly wastewater) service providers in urban areas. Number of WSS Service Providers 50 Ownership Public Service Type Water and Wastewater Geographic Scope Municipal The National Superintendence of Sanitation Services (SUNASS) is a public regulatory authority established in 1992 by Decree-Law No. 25965. It’s Peru’s economic regulator for sanitation services which include drinking water supply, wastewater collection and treatment, and sanitary disposal of excreta. SUNASS was initially granted responsibility for overseeing 50 EPs that serve urban areas. In 2016, the Framework Law 1280 expanded SUNASS’s role to include the supervision of more than 25,000 service providers in rural areas and 450 operators in small cities. Its functions, therefore, seek to guarantee the provision of sanitation services, in both urban and rural areas, under quality conditions, in order to contribute to the health of the population and the preservation of the environment. SUNASS is responsible to: Supervise service providers’ compliance with the legal, technical, and contractual obligations Regulate tariffs for water and wastewater services Dictate regulations and standards in the sector Sanction non-compliance with defined standards Resolve user complaints and conflicts between users and service providers Dispute resolution and conflicts between water and wastewater service providers In addition to these functions, a set of new ones were introduced in 2016 with an implementation date of 2022. Under some of those, SUNASS is responsible to: Determine the geographical area for service provision (service delivery area) Determine the viability of service providers' mergers Grant authorization to municipalities for water and wastewater service provision when integration with an EP is not possible Supervise the execution of public-private partnerships (PPP) in the sanitation sector Evaluate the EPs according to Framework Law in order to establish whether they are eligible for technical support from OTASS Mission To regulate, standardize, and supervise the provision of sanitation services, by providers, in an independent, objective, and timely manner, to help citizens ensure the exercise of their rights and duties. Water and Wastewater Regulations Legislation and Policies Year Description National Superintendency of Sanitation Services Law (Law No. 25965) 1992 Establishes SUNASS as a regulatory authority and grants it regulatory functions over sanitation services provider entities General Sanitation Services Law (Law No. 26338) 1994 Sets the rules for the provision of water and wastewater services to the population Framework Law for the Management and Provision of Sanitation Services (Law No. 1280) 2016 Defines the roles of ministries and other public bodies that intervene in the water and sanitation sector, including SUNASS, as well as local and regional governments and service providers Regulation for Water Quality for Human Consumption (Supreme Decree No. 031-2010-SA) 2010 Regulates drinking water quality parameters, monitoring, and enforcement Regulation for Granting Authorization for the Discharge and Reuse of Treated Wastewater (Resolution No. 224-2013-ANA) 2013 Sets the procedure for authorization of discharge and reuse of treated wastewater, in order to ensure comprehensive and sustainable management of water resources Areas of Regulation Areas The National Superintendence of Sanitation Services (SUNASS) Tariff Calculation Yes Tariff Approval Yes Licensing Water and/or Wastewater Service Providers No Business plans approvals No Performance indicators monitoring Yes Economic Data Collection Yes Technical Data Collection Yes Coming Soon Utilities Date Tariff Enitidad Prestadora Mantaro S.A. 2019 Tariff Servicio de Agua Potable y Alcantarillado de Lima S.A. 2019 Tariff A more complete list of tariffs can be found at IBNET Tariff Database - Peru