EXECUTIVE SUMMARY

 Master plan period: 2015 – 2045 applied in SEDACHIMBOTE S.A

 Analysis of the current company with the objective of identifying causes or problems in
the drinking water and sewerage service
 Goal: Improve these services and boost the economy and financial status of the
company.

ESTIMATE DEMAND OF THE SERVICES

 In the first 5 years, estimated demands encountered are: type of user, price elasticity,
income elasticity, continuity and political effects of connections, micro-measurement
and operational conditions improvement of the drinking water.

Connectors of drinking water

Year Total Increase Active %
1 87,765 763 91.88
2 88,389 624 92.18
3 89,014 625 92.47
4 89,635 621 92.76
5 90,263 628 93.06

TABLE 1. With that said, it is registered to improve 3,260 new connectors in 5 years.

Connectors of sewerage
Year Total Increase Active %
1 79,327 680 93.95
2 79,878 551 94.14
3 80,429 551 94.32
4 80,978 549 94.5
5 81,524 546 94.68

TABLE 2. It is expected to grow 10,639 new connectors of sewerage in the administration

company.

FINANCING AND INVESTMENT PROGRAM

 The company does not have lines of financing approved for the long run. The resources
itself that generate must be prioritized to sustain and improve actual levels of
efficiencies in drinking water, sewerage, effluents treatment. This is help to improve and
maintain the coverage level.
 In the second 5 years, we will improve, renew and expand for 163, 580 thousands of
soles (without tax) that includes direct and indirect costs.
  Drinking water investments increase to S/. 76,686 thousands of soles and sewerage
investments increase to S/. 86,894 thousands of soles. The reason of the increase is
because the infrastructure shows a bigger deterioration, which leads to frequent
jamming and overflowing.

Estimated investments in the second 5 years (Soles)

Service Year 1 Year 2 Year 3 Year 4 Year 5 Total
Drinking water 3,658,904 7,894,386 9,154,753 9,224,923 5,458,202 35,391,168
Sewerage 1,522,577 1,236,045 1,297,927 2,189,036 2,462,139 8,707,724
Total 5,181,481 9,130,431 10,452,680 11,413,959 7,920,341 44,098,892

TABLE 3 AND 4. 90.55% will be invested in internal resources from the financing program,
meaning that the funds generated from the water and sewerage services. 7.23% will be
financed with short term loans which will be used in cases of emergencies. However, these
loans will be paid during that same period and the 2.22% will be financed by the clients when
they request new connectors.

Financing 1 2 3 4 5 Total %
sources
Donations - - - - - - -
Intern
- - - - - - -
credit
Own
5,181,481 9,130,431 10,452,680 11,413,959 7,920,341 44,098,887 100
resources
11,413,95
Total 5,181,481 9,130,431 10,452,680 7,920,341 44,098,887 100
9

ESTIMATED EXPLOITATION COSTS

 Estimated exploitation costs were taken in the budget established in 2014, which was
approved in the Ministry of Economics and Finance.
 From that base, they applied the methodology that consists in projecting the
exploitation costs for different phases of productive processes and functional activities.

Operation costs Administrative

Year Total cost
Drinking water Sewerage costs
1 7,921,231 4,755,560 11,171,904 23,848,695
2 7,918,774 4,762,397 11,313,954 23,995,125
3 8,263,889 4,745,884 11,437,368 24,447,141
4 8,228,613 4,788,032 11,562,332 24,578,977
5 7,930,481 4,749,947 11,687,452 24,367,880

TABLE 5. The costs of the superficial water usage are estimated with the current selling price of
the water by the National Authority of Water (ANA).

ESTIMATED EARNINGS
  Earnings consist in drinking water, sewerage and other earnings that consist in new
connectors and the delayed payments of the berries.
 Drinking water and sewerage earnings are based on the usage growth, consumption bill
used or not sued, price elasticity, income elasticity, etc.

TABLE 6.

Drinking water Other

Year Sewerage Total
Measured Not measured earnings
1 18,641,389 3,456,527 9,218,982 4,627,486 35,944,384
2 19,506,361 3,325,511 9,516,579 4,649,086 36,997,537
3 20,419,130 3,180,846 9,831,656 4,752,812 38,184,444
4 21,322,340 3,066,330 10,153,052 4,834,369 39,376,091
5 22,262,346 2,980,022 10,498,570 4,919,371 40,660,309

FORMULA RATE OF DETERMINATION

TABLE 7.
Increased rate
Year Drinking water Sewerage
1 42.20% 46.10%
2 - -
3 - -
4 - -
5 - -

An increase in the sewerage in the first year so as the drinking water. This increase has been
calculated in 42.2% in drinking water and 46.1% in sewerage including required costs and
investments.

MANAGEMENT GOALS
 Increase 3,261 drinking water connectors.
 Increase 2,877 sewerage connectors.
 Reach to the continuity in each local area.
 Reach to the MINIMUM PRESSURE in networks in each local are.
 Increase 6,363 new mediators in EPS level.
 Water not invoiced to determine in the second year.
 Reach to the working relation of 62%.
 Increase active connectors to 93.06% level of EPS at the end of the year 5th period.
 Reach to an update in the technical cadaster to 100% in the 5th year
 Reach to an update in the technical commercial in the third year to 100%.
INTRODUCTION
Calculations and projections are used with the stimulation model proportioned by the National
Superintendence of Sanitary Service (SUNASS), which is a technical economic and financial
model. Information used for this are investments, financing, supply, demand actives of the
company, etc.

The PMO (Project, Management Office), the proposed rate and the structural rate were
approved by the SEDACHIMBOTE S.A in function of the financing capacity of the company.
However, the true need of investment that the company requires is 600 millions of soles in the
horizon plan, which will need a financing support.

The Master Plan approved by the director consists on the sustain and improvement of the
principal indicators that follow in the Management goals for the 5 th year, prioritizing in the
sustain of the service and less margin of expansion of the coverage. In the moment they do not
have credit lines of long run to meet their necessities.

OBJECTIVES

General Objective
 To formulate and fortify plans and design programs by the EPS Service of drinking water
and sewerage of SANTA, CASMA and HUARMEY ANONYMOUS SOCIETY –
SEDACHIMBOTE S.A. in order to achieve long run goals

Specific objectives
 Evaluate the company capacity and deficits in the current systems to improve
management and quality of water and sewerage services.
 Propose the infrastructure of drinking water system to guarantee a permanent water
supply and physical chemistry and adequate bacteriology.
 Propose the infrastructure of the sewerage sanitary system to guarantee an adequate
disposition of the residual waters to prevent health dangers to the population and
reduce pollution
 Determine real costs of the water and sewerage.
 Determine level rates that allow to sustain the project goals and inversions for the first 5
years of plan.
 Propose new structure rate of SEDACHIMBOTE S.A..in concordance with the actual
directives to way that it reflects the service costs according with the quality and
continuity service.

1. DIAGNOSIS
1.1 FINANCING ECONOMY DIAGNOSIS.
To understand the current economy, the company has analyzed the financial status of 2011,
2012 and 2013. There was an increase in rates and adjustments in the structural rate that
reflects the level of income achieved in these years. Furthermore, the investments in the
extension of coverage, investments and rehabilitation, have had an important incident in the
level of earnings as much as the costs.
1.1.1 Financial status analysis
a) Financial status (in thousands of soles) TABLE 8.

2013 2012 2011

ASSETS CURRENT ASSETS
Effect and equivalent defect 1,262 1,292 1,853
Accounts to charge (net) 2,772 2,931 2,342
Other accounts to charge (net) 2,127 1,593 1,454
Inventories (net) 346 352 342
Assets maintained for sales 20
Spending paid in advanced 2 2 2
Other non-financial assets 386 532 0
Total Current Assets 6,895 6,702 6,013
NON CURRENT ASSETS
Property, plant and equipment (net) 281,824 66,611 62,069
Intangible assets (net) 1,392 5,738 4,812
Other assets 723 749 775
TOTAL NON CURRENT ASSETS 283,939 73,098 67,656
TOTAL ACTIVE 290,834 79,800 73,669
Borrowers account 9,847 21,465 19,352
PASSIVE CURRENT
Accounts to pay (commercial) 3,064 2,290 1,657
Other accounts to pay 2,034 1,503 362
Provisions 2,849 2,930 3,844
Provisions for employees’ benefits 1,271 1,186 537
TOTAL CURRENT PASSIVE 9,218 7,909 6,400
NON CURRENT PASSIVE
Mandatory financing 13,153 13,153 13,148
Provisions for employees’ benefits 1,989 1,975 2,036
Differed earnings (net) 223,741 14,637 15,399
Total non-current passive 238,883 29,765 30,583
Total passive 248,101 37,674 36,983
WEALTH
Capital 25,529 25,529 25,529
Additional capital 764 764 764
Not realized results 16,388 16,388 14,244
Legal reserves 642 577 577
Accumulated results -1,536 -1,788 -3,638
Period results 946 646 -790
TOTAL NET WEALTH 42,733 42,116 36,686
TOTAL PASSIVE AND WEALTH 290,834 79,800 73,669
CREDITOR ORDERS ACCOUNT 9,847 21,465 19,352

b) Current situation and liquidity

 Current active in 2011 was 6.01 millions of soles.

 In 2012 was about 6.70 millions of soles, it increased in 11%.
 In 2013 active value was 6.90 millions of soles, increasing to 3%.
 Increase of salary to charge 7.62 millions of soles
 Estimated for bad debts up to 4.39 millions of soles in 2013 as explained in 1.1.2
 The asset increased in 2011 and 2013 was caused primarily that it was registered major
earnings of the account to charge for lack of payment of the users.

c) Level of assets and depreciation

 The non-current asset went from 67.66 millions of soles in 2011 to 73.10 millions of
soles in 2012, showing an 8.04% growth
 In 2013 increased to 283.94 millions of soles, showing 288.43% growth.
 The cause of the growth was because of the different works that concluded with own
earnings and also the activation of works were transferred by the regional government
and the central government.
 In 2011, the active tangible assets was registered with an 96.70 millions of soles and the
accumulated depreciation was 24.63 millions of soles.
 Current devaluation: 28.41%
 In 2012, 89.75 millions of soles of devaluation and the accumulated depreciation was
23.13 millions of soles.

d) Wealth
 In 2011, the wealth of the company was 36.69 millions of soles
 In 2012, 42.13 millions
 In 2013, it reached to 42.73 millions.

TABLE 9. (In thousands of soles)

Concept 2013 2012 2011

Accumulated -1,536 -1,778 -3,638
lost
Utility 946 646 -790
exercise
Accumulated -590 -1,132 -4,428
result

The Accumulated Result had some variations due to the reduction of accumulated lost by effect
of the utility application in each exercise.

e) Result status (In thousands of soles) TABLE 10.

 2013 2012 2011
Net sales 24,876 23,880 20,485
Total income of ordinary activities 24,876 23,880 20,485
Sales costs -22,800 -14,626 -14,518
Gross earnings 2,076 9,254 5,967
Sales and distribution costs -4,959 -4,015 -3,404
Administrative spending -5,953 -6,353 -5,669
Other operative earnings 10,217 1,967 2,246
Operational (loses) earnings 1,381 853 -860
Financial earnings 186 209 240
Financial spending -46 -81 -170
Result before taxes to earnings 1,521 981 -790
Spending for taxes to earnings -575 -335 0
Total net spending of exercise and 946 646 -790
rent

f) Operational earnings

 Net sales surpassed from 20.46 millions of soles in 2011 to 23.88 millions of soles in
2012. It leaded to a growth of 16.72%
 In 2013 sales increased to 24.87 millions of soles, which represents 4.15%
g) Sales cost

 Sales cost in 2011 increased from 14.52 millions to 14.63 millions of soles in 2012,
representing a 0.76% growth.
  In 2013 this section was considerably increased reaching to the import of 22.80 millions.
of soles, growing in 55.84%, generated because of the depreciations of the sanitary
infrastructure.

h) Operative expenses

 Sales increased in 17.95% in 2011-2012 and in 2013 increased in 23.51%.

 Administrative expenses increased in 12.07%, compared to 2011 with 2012, but in 2013
it decreased in 6.30%.
 Sales cost was the most growing cost.
 The increase of operative costs is caused by the depreciation of the assets.

i) Operative utility

 The operative utility has varied from (4.20)% in 2011 to 3.57% in 2012, reaching to a
5.55% in 2013.
 It is growing due to sales are increasing more than the costs, but it is still not enough for
these types of companies.
 This is the main priority to check internal costs and establish against SUNASS the real
costs of the company to prevent any imbalances in the financial economy.

j) Other earnings and spending

 One of the relevant factors of these three years of analysis that affected the results was
the “Other earning and spending” account.
 Main roles: collect differed earnings, depreciation of transferred works from the Central
and Regional government.

TABLE 11.

Vertical Analysis Horizontal Analysis

2013 2012 2011 2011-2013 2011-2012

Net sales services 100.00% 100.00% 100.00% 21.43% 16.57%

Total earnings from ordinary
activities 100.00% 100.00% 100.00% 21.43% 16.57%

Sales costs -91.65% -61.25% -70.87% -57.04% -0.74%

Gross Earnings (losses) 8.35% 38.50% 29.13% 65.20% 55.08%

Sales and distribution expenses -19.93% -16.81% -16.62% -45.67% -17.94%

Administrative expenses -23.93% -26.60% -27.67% -5.03% -12.08%

Other operative income 41.07% 8.24% 10.96% 354.98% -12.39%

Operative earnings (losses) 5.56% 3.33% -420.00% 260.61% 199.25%

Financial earnings 0.75% 0.88% 1.17% -22.67% -13.08%

Financial expenses -18.00% 0.34% -0.83% 73.15% 52.57%

Result before taxes to earnings 6.13% 3.87% -3.86% 292.58% 224.25%

Expenses for taxes to earnings 2.31% -1.40% 0.00%

Total integral result of the exercise,
net tax to rent 3.82% 2.47% -3.86%

In the last three years results have improved. In 2011, it started with a 0.79 millions of soles but
then in 2012 it improved to 0.65 millions of soles and finally in 2013 it reached to a utility of
0.95 millions of soles, representing a 46.44% growth.

k) Effective flow – TABLE 12 (in thousands of soles)

CONCEPTS 2013 2012 2011

A. ACTIVITIES OPERATION
Collection (entrance) for:
Sales of goods and service loans 26.29 28.24 25.64
Other entrance of Relative Effects to the Activity 2.22 96.00 1.27
Operation
Payments for:
Provider of goods and services -4.28 -4.88 -4.44
Employees account -13.76 -10.89 -12.10
Tax earnings
Other relative payments -7.09 -9.80 -5.91
EFFECTIVE FLOW OF OPERATION ASSETS 3.38 2.78 4.46
B. INVESTMENT ACTIVITIES
Collection (entrance) for:
Other entrance of Relative Effects to the Activity 602.00 174.00 -
Operation
Lower payments (exits) for: -
Payments for peroperty, plant and equipment -914.00 -552.00 -2.87
Disbursement for work in progress of propety, plant -1.98 -2.67 -
and equipment
Purchase of intangible actives -778.00 -927.00 -532.00
Other payments - - -
Effect flow used in invested assets -3.07 -3.97 -3.40
C. Financing activities
Collection (entrance) for:
Other collections of Relative Effect to Financing 65.00 2.65 -
Lower payments (exits) for: -
Depreciation or loans payments of long run - -30.00 -874.00
Repurchase of own assets -
Other relative effective payments to Financing -404.00 -1.99 -253.00
Effect flow used in invested assets -339.00 632.00 -1.13
Increase(Decrease)Net effect and equivalent effect -30.00 -561.00 -73.00
(A+B+C)
Effective credit and equivalent effect from the 1.29 1.85 1.93
beginning of the
Effective and exercise when finalizing the exercise
equivalent 1.26 1.29 1.85

 The average operational earnings surpassed 2.14 millions of soles in 2011, 2.35 millions
of soles in 2012 and 2.19 millions of soles in 2013, representing a growth of 2.55%
between 2011-2013.
 The average cash flow in 2011 were 1.76 millions of soles. In 2012 were 2.12 millions of
soles and in 2013 it went down to 1.91 millions of soles, showing a 9.9% decrease.
 The Central Government has received funds from the program “Agua para Todos” for
13.81 millions of soles.
 In summary the funds flow in the first four years (2009-2012) have generated reasonable
credit to cover the operational needs.
 22.2% of the invoices are showing difficulties to pay satisfactory their needs. A way to
solve this is to request a SUNASS the reduction of the future percentage from the fund,
guaranteeing first compliance of the operational expenses and service of the debt.

1.1.2 Evolution of trade accounts

The management process of collection includes actions that go from delivery of the bill,
collection up to cancellation of the contract.
a) Collection efficiency

The collection efficiency is the relation between the amount charged (with tax) and billed for a
determined period (with tax). The evolution of the billed and collection in the last three years
were the followings:

TABLE 13 (in thousands of soles)

YEARS BILLED PA. MONTH COLLECTED TOTAL EFFICIENT EFFICIENT TOTAL

R/, B/V COLLECTED PERIOD COLLECTION COLLECTION COLLECTION EFFICIENT
2011 20,754 22,661 109.19%
2012 24,418 25,193 103.17%
2013 25,047 26,616 106.26%

b) Actual credit to charge

In 2011 and 2012 the collected accounts have grown to an annual of 0.47 millions of soles.
However, in December 2013, there was a reduction from 2012 of 0.11 millions of soles.

TABLE 14 (in thousands of soles)

2011 2012 2013

Details/Years Import % Import % Import %
From 1990-2009 4,296 63.19 4,178 57.49 4,054 56,60
Financial questionable collections
2010 162 2.38
2011 965 14.19 158 2.17
2012 1,510 20.79 294 4.1
2013 1,178 16.45
Sub-Total
Emitted collective agreements
Total collective agreements
Total accounts to collect 6,799 100 7,267 100 7,162 100

Total account 12 6,799 100 7,267 100 7,162 100

Total account 19 -4,458 -65.27 -4,336 -59.67 -4,390 -61.3
Amount to charge to clients (net) 2,341 34.73 2,931 40.33 2,772 38.70

1.1.3 Evaluation of the accounts pending for payment and current credit

a) Important passives and its impact

 The current passive in 2013 increased to 9.22 millions of soles.

 In 2012 was 7.91 millions of soles.
 In 2011, it reached to 6.4 millions of soles.
 The current passive has increased in 2012 and 2013 because the company did not fulfill
to pay their Compensation for Time and Services, labor benefits, tributary debts and
debts to providers.

TABLE 15. Evolution of the passives (in thousands of soles)

DETAIL 2013 2012 2011

Current passive 9,218 7,909 6,400
Non-current
passive 238,883 29,765 30,583
TOTAL 248,101 37,674 36,983
TABLE 16. Evolution of the passives (in thousands of soles)

DETAIL 2013 2012 2011

Fonavi 13,153 13,153 13,148
Providers 3,065 2,290 1,657
Tributes 1,060 765 0
AFP 180 134 61
SUNASS 89 23 37
CTS and Retired 2,103 2,083 2,182
Labor demand 2,849 2,930 3,844
Other debts 1,861 1,659 685
Deferred earnings (net) 223,741 14,637 15,399
TOTAL 248,101 37,674 37,013
MINUS: Deferred
223,741 14,637 15,399
earnings
Enforceable passive 24,360 23,037 21,614

1.1.4 Evolution and structure to the costs of operation and maintenance

 For the analysis costs, we removed the refundable and the non-refundable costs.

a Water and sewerage operational costs

TABLE 17. Summary of the operational costs (in thousands of soles)

CONCEPTS 2013 2012 2011

Refundable costs 19,816 19,982 17,878
Personal expenses 12,060 11,648 10,015
Compensation for time and 787 791 700
service
Retirement 74 76 71
Goods and inputs 1,515 1,575 1,793
Water purchase 0 0 0
Third-party services 3,997 4,684 4,229
Tributes 641 628 577
Diverse management charges 742 580 493
Non-Refundable costs 13,941 5,092 5,883
Depreciations 11,808 3,250 3,990
Intangible Amortization 0 0 0
Provision of uncertain
accounts 1,197 1,314 1,291
Litigious provisions 936 528 1,291
TOTAL OPERATIVE COSTS 33,757 25,074 23,761
TABLE 18. Summary of refundable costs in percentage

CONCEPTS 2013 2012 2011

Personal expenses 60.86% 58.29% 56.02%
Compensation for time and 3.97% 3.96% 3.92%
service
Retirement 0.37% 0.38% 0.40%
Goods and inputs 7.65% 7.88% 10.03%
Water purchase 0.00% 0.00% 0.00%
Third-party services 20.18% 23.45% 23.64%
Tributes 3.23% 3.14% 3.23%
Diverse management charges 3.74% 2.90% 2.76%
TOTAL REFUNDABLE COSTS 100.00% 100.00% 100.00%

 The refundable costs at the end of 2013 grow up to 19.82 millions of soles, which
represents an increase of 11% compared to 2011.
 In 2011, the amount of these costs were 5.88 millions of soles.
 In 2012, it reached to 5.09 millions of soles
 In 2013, it reached to 13.94 millions of soles , showing a growth of 136.97% between
2011-2013

b) Drinking water costs

 In 2011, drinking water costs were a total of 15.68 millions of soles.

 In 2012, it rose to 16.05 millions of soles.
 In 2013, it reached to 22.95 millions of soles. Costs increased 66% in 2011 66%, in 2012
64% and in 2013, 68%.

TABLE 19. Summary of drinking water costs

CONCEPTS 2013 2012 2011

Refundable costs 13,475 12,789 11,799
Personal expenses 8,201 7,454 6,610
Compensation for time and 535 506 462
service
Retirement 51 49 57
Goods and inputs 1,030 1,008 1,183
Water purchase 0 0 0
Third-party services 2,718 2,998 2,791
Tributes 435 403 381
 Diverse management charges 505 371 325
Non-Refundable costs 9,480 3,259 3,883
Depreciations 8,029 2,080 2,633
Intangible Amortization 0 0 0
Provision of uncertain accounts 814 841 398
Litigious provisions 637 338 852
TOTAL DRINKING WATER COSTS 22,955 16,048 15,682

c) Sewerage costs

 The operative costs of sewerage were in 2011 of 8.08 millions of soles.

 In 2012, 9.03 millions of soles.
 In 2013, 10.9 millions of soles
 The growth between 2011-2013 was 2.72 millions of soles representing a 33.66%
growth.

TABLE 20. Summary of the sewerage cost (in thousands of soles)

CONCEPTS 2013 2012 2011

Refundable costs 6,341 7,194 6,078
Personal expenses 3,859 4,193 3,405
Compensation for time and 252 285 238
service
Retirement 24 27 24
Goods and inputs 484 567 608
Water purchase 0 0 0
Third-party services 1,279 1,687 1,438
Tributes 205 226 196
Diverse management charges 238 209 168
Non-Refundable costs 4,461 1,833 2,001
Depreciations 3,778 1,170 1,357
Intangible Amortisation 0 0 0
Provision of uncertain accounts 383 473 205
Litigious provisions 300 190 439
TOTAL SEWERAGE COSTS 10,802 9,027 8,079

d) Production, invoices, loses and unitary costs

TABLE 21. Production, invoices, loses and unitary costs

YEARS PRODUCTIO INVOICES LOSES Cost of operation (millions of soles)

Mill.NM3 Mill. M3 (*) % 1 2 3
2011 28.70 15.75 45 17.71 23.59 23.76
2012 26.78 16.45 39 19.90 24.99 25.07
2013 26.81 16.58 38 19.77 33.71 33.76

 The volume produced between 2011 and 2013 has decreased considerably because in
2011 the production was 28.70 millions m3 and in 2013, was 26.81 millions m3, leading
to a reduction of 1.89 millions m3.
 In terms of invoices, there was an increase of 0.83 millions m 3.
 With the production mentioned before, the level of losses reduced from 45% in 2011 to
38% in 2013.

e) Costs without depreciation and provision

 In 2011, the net operative costs of depreciations and provisions were 17.71 millions of
soles.
 For 2012 it grew up to 19.90 millions of soles
 In 2013, slightly decreased reaching up to 19.77 millions of soles.

f) Costs with depreciation and provision

 In 2011, the operative costs including depreciation and provision represented 23.59
millions of soles.
 In 2012, 24.99 millions of soles.
 In 2013, it reached to 33.71 millions of soles.

g) Costs with depreciation, provision and financial expenses

 In 2011, the operational costs with depreciation, provision and financial expenses
increased to 23.76 millions of soles.
 In 2012, it reached to 25.07 millions of soles.
 In 2013, it reached to 33.76 millions of soles.
 Registered growth in this period was 42.09%

h) Unitary costs of exploitation

 It had a behavior that has been affected by volume produced waters.

i) The invoice

 In 2011, the exploitation costs changed from 0.62 soles m3. The drinking water and
sewerage was S/.1.51 per m3.
  In 2012, 0.74 soles m3. The drinking water and sewerage reached to S/. 1.45 per m3,
showing a decrease from 3.97%.
 In 2013, 0.74 soles m3 as well, showing no growth. The drinking water and sewerage was
S/. 1.44 m3, reaching to a 0.69% decrease.

j) Production

 The cost of exploitation varied from S/.0.82 in 2011 to S/0.93 in 2012 and S/.126 in
2013.
 The unitary cost of exploitation had an increase of 13.41% in 2011-2012 regardless of
the slight contraction of production.
 The drinking water and sewerage was S/.1.51 per m3, resulting a decrease of 3.97% in
2012
 In 2013, the rate reached to S/.1.44 m3, representing a reduction of 0.69%.
 It must be taken in consideration that costs of the company have increased considerably
because of the depreciation.

1.1.5. Evolution and structure of earnings for sanitary and other services

a) Invoice volume

 The decisions improvement of the PMO need to reflect an improvement in invoice

volumes.
 Commercial data since 2011 show the growing evolution of the invoice in M 3, growing in
706 miles of m3 in 2012 and in 2013 125 miles of m3.

TABLE 22. Invoice volumes (thousands m3)

Concept 2013 2012 2011

Invoice volume 17 16,455 15,749
By assigned 4,332 4,300 4,115
consumption
By average 3,683 3,654 3,498
By
measurement 8,565 8,501 8,136
Annual M3 125 706
increase
b) Imported invoice

Nominal and real annual sales

 Total sales in the company from 2011 to 2013 have growth favorably surpassing from
20,485 to 24,876 millions of soles. This shows a nominal increase in 4,391 millions of
soles. This equals 21.44% accumulated in 2011-2013.
 Sales in nominal terms have deflated by the IPM each year.
  It accomplishes to sale 48 10 in 2007 and 69 78 millions o of soles for 2010 There was an
average increase of 13.2%.

TABLE 23. Nominal and real sales (In thousands of soles)

Concept 2013 2012 2011

Nominal sales 57,215 21,492 106,522
Deflator (IPM) 2.3 -0.1 5.2
Rental sales 24,876 23,880 20,485

Net sales per component

 Between 2011 and 2012 the average net income was growing 16.54%.
 In 2013, there was an increase of 4.19%.
 The average monthly sales for water services and sewerage was 2.07 millions of soles.

c) Diverse earnings

 Between 2011-2013 diverse earnings went down to 2.49 millions of soles

 In 2011, 2.18 millions decreased.
 In 2012, a 0.31 millions of soles decreased was found.
 However, in 2013, there was a growth of 10.41 millions of soles, representing 318.07%
more earnings.

1.2 Trading diagnosis

a) Population under the scope of SEDACHIMBOTE S.A

TABLE 24. SEDACHIMBOTE S.A Population

Local Population %
Chimbote 346,825 85.66
Casma 35,374 8.74
Huarmey 22,679 5.60
Total Sedachimbote 404,878 100

b) Population served

TABLE 25. Drinking water population

Local Population %
Chimbote 346825 309,037 89.10
 Casma 35374 27,814 78.62
Huarmey 22679 19,825 87.41
Total Sedachimbote 356,676 88,09

c) Service coverage

In December 2013, SEDACHIMBOTE S.A provided 91.8%

TABLE 26. Distribution of water service

Local Habitants x unit used %

Chimbote 4.51 92.5
Casma 4.13 81.4
Huarmey 4.52 95.60
Total Sedachimbote 91.80

TABLE 27. Sewerage coverage

The sewerage coverage in SEDACHIMBOTE S.A in December 2013 reached to 82.4%

Local Habitants x unit used %

Chimbote 4.51 88.20
Casma 4.13 60.10
Huarmey 4.52 74.90
Total Sedachimbote 82.40

d) Number of connectors

 A number of base data was collected

 In December 31, 2013, the total number of connectors increased to 85,046 distributed in
three places administered by EPS SEDACHIMBOTE S.A
 In December, 2008, it reached to 73,169 water connectors.

TABLE 28. DISTRIBUTION OF DRINKING WATER CONNECTORS OF DECEMBER 2013

Total Active Inactive
Local connectors % connectors % connectors %
Chimbote 73,816 86.8 68,619 80.7 5,197 6.1
Casma 6,347 7.5 6,053 7.10 294 0.3
Huarmey 4,88 5.7 4,415 5.20 468 0.6
 Total 85,046 100 79,087 93 5,959 7
Sedachimbote
Total Utility Active Utility Inactive Utility
Local used % Used % Used %
Chimbote 81,404 85.4 74,324 91.3 7,080 8.7
Casma 8,222 8.60 7,722 93.90 500 6.1
Huarmey 5,656 5.90 4,881 86.30 775 13.7
Total
Sedachimbote 95,282 100 86,927 91 8,355 8.8

 7% are found inactive, meaning that they were not invoiced because of lack of
payments, or the service was suspended by the user.

TABLE 29. DISTRIBUTION OF UNITS USED OF DRINKING WATER OF DECEMBER 2013

 SEDACHIMBOTE counts with 95,282 Total Units used of drinking water which 85.4%
belongs to Chimbote and New Chimbote. The difference belongs to the rest of the other
areas.
 Casma has the highest percentage of Total Units used (93.9%)

TABLE 30. DISTRIBUTION OF UNITS USED OF ACTIVE DRINKING WATER TO DECEMBER 2013
PER CATEGORY RATE

Domestic Social State Commercial Industry

Local Qty % Qty % Qty % Qty % Qty % Total Units used
Chimbote-New 64,694 87 3,217 4.3 351 0.47 5,949 8.00 113 0.15 74,324
Chimbote
Casma 6,515 84 305 4 50 0.65 824 10.67 28 0.36 7,722
Huarmey 3,971 81 407 8 51 1.04 444 9.10 8 0.16 4,881
SEDACHIMBOTE
S.A 75,180 87 3,929 5 452 0.52 7,217 8.30 149 0.17 86,927

TABLE 31. DISTRIBUTION OF SEWERAGE CONNECTORS OF DECEMBER 2013

Total Active Inactive

Local connectors % connectors % connectors %
Chimbote 72,191 88 67,485 82.3 4,706 5.7
Casma 5,674 7 5,477 6.70 197 0.2
Huarmey 4,178 5 3,772 4.60 406 0.5
Total 85,046 100 76,734 93.5 5,309 6.5
Sedachimbote

 The total sewerage connecters, 6.5% are found inactive while 93.5% are found active

TABLE 32. DISTRIBUTION OF SEWERAGE UNITS USED OF DECEMBER 2013

Total Utility Active Utility Inactive Utility
Local used % Used % Used %
Chimbote 75,174 87.9 70,331 93.6 4,843 6.4
Casma 6,078 7.10 5,880 96.70 198 3.3
Huarmey 4,257 5.00 3,850 90.40 407 9.6
Total
Sedachimbote 85,509 100 80,061 93.6 5,448 6.4

 SEDACHIMBOTE has 85,509 Total utility used which 87.9% belongs to Chimbote-New
Chimbote. The difference is in the rest of the other locals. The highest percentage of
Total Use of Active Sewerage (96.7%) was Casma.

TABLE 33. DISTRIBUTION OF UNITS USED OF ACTIVE SEWERAGE OF DECEMBER 2013 BY

CATEGORY

Domestic Social State Commercial Industry Total Units used

Local Qty % Qty % Qty % Qty % Qty %
Chimbote-New ##### 90.7 222 0.30 336 0.5 5,880 8.40 97 0.1 70,331
Chimbote 13.7
Casma 4,969 84.5 22 0.40 55 0.90 804 0 30 0.50 5,880
10.7
Huarmey 3,377 87.7 5 0.10 47 1.20 411 0 10 0.30 3,850
SEDACHIMBOTE
S.A 72,142 90.1 249 0.30 438 0.50 7,095 8.90 137 0.20 80,061

Structural rate

TABLE 34. STRUCTURAL RATE

CONSUMPTION CONSUMPTION Rates S/. / M3
ASSIGNED RANGE M3/ CHIMBOTE CASMA/HUARMEY
CATEGORY M3/MONTH MONTH WATER SEWERAGE WATER SEWERAGE
SOCIAL A / 10 0-10 0.255 0.108 0.175 0.079
 10+ 0.443 0.187 0.309 0.138
0-8 0.667 0.280 0.309 0.138
DOMESTIC A1 / 20 9-20 0.768 0.324 0.36 0.163
21+ 1.606 0.678 0.848 0.38
COMMERCIAL IA / 25 0-30 1.661 0.701 0.999 0.449
31+ 3.541 1.493 2.204 0.988
INDUSTRY IA / 100 0+ 2.937 1.240 1.813 0.813
0-100 0.667 0.280 0.36 0.163
STATE A / 100 101+ 1.270 0.535 0.745 0.334
 The company counts with five client categories: domestic, commercial, industrial, state
and social.
 The rate of the sewerage services is different than the drinking water and the cost is in
base of the volume consumed.

INVOICE AND CHARGES

 Through the invoice the import to charge the client for the monthly consumption of
water and tax, the user pays the bill in the first day of each month.
 EPS SEDACHIMBOTE S.A includes drinking water and sewerage services.

MICROMEASUREMENT
 The index of the micro measurement ascends to 77.55% which equals 61,329 mediators
installed in the connectors.
 However, the mediators measured 53,648 units, meaning that 7,681 less mediators than
before. Most of them were stolen or vandalized by third-parties.
 This puts the mediation system at risk.
 60.7% of the total water connectors are presented in the invoice of lecture differences.
 39.3% of water connectors are invoiced through assigned consumption or average
consumers.

e) Commercial Improvement actions:

Cadastral dynamic update

 Water and sewerage connectors have diverse usages, where the change of activity in the
property is very dynamic.
 It is important to have permanent verifications of the water, commercial sewerage
usage, state or industry.
 During the last year of the five year-term, a Cadastral was applied to verify changes of
the venue usage.

Recover of the portfolio default

 Consists in following the connectors with debts that can be the ones with shut down
temporarily because of pension debts or collateral debts. This activity’s objective is to
recover the portfolio through administrative actions and judicial actions.
  From the “Credits to charge for the drinking water and sewerage service for August
2013” it has:
o It is considered as heavy portfolio to debts to pay for 1994-2011 and light
portfolio to the debts to pay in 2012-2013
o The interventions must be notified and justified.
 Actions must be applied in the field to prevent increase of this portfolio, meaning that
they want to reduce the number of inactive. They want all of the actions allowed by the
General Service of Sanitary law.

Connector and mediator detection to prevent the real consumption of the connectors
 There are different ways to subtract water such as the installation of connectors annex
registered by the EPS.
 Prevent invoices by half consumption and continue with an average or assigned
consumption way down from the real consumption
 This program was developed during the last year of the five-year term. It is
recommended to developed it permanently
 These activities consist of a monitoring of the field connections in order to detect,
manipulate the connections of the meditator. Field technicians will make use of the
formal user registers for field testing.
 When a problem is found, the technician will take note. This was established by
SEDACHIMBOTE.

1.3 Operational diagnosis

Generalization

 The Operational Diagnosis is based on the integrated system of Water Supply and
Sewerage of the City of Chimbote, Casma and Huarmey.
 In the city of Chimbote (Chimbote and Nuevo Chimbote) the water supply consists of
two natural sources: underground and superficial. Disinfection is performed as the only
treatment for drinking water from wells to sanitize the surface water.
 The sewage network has a drainage area corresponding to almost all of the urban area
of Chimbote Norte and Chimbote Sur, with the exception of the new human settlements
to the south of the city, that is to say, the District of Nuevo Chimbote.
 The fishing industry uses a lot of sea water and also fresh water in its process, but it does
not have any type of treatment and discharges directly to the sea. By unloading all the
remains to the sea, it causes a very high level of pollution in the bay.

Rehabilitation of the Wells

 18 wells were rehabilitated and the following works were carried out:
o Background recovery (desanding of all wells).
o Development of the well for 48 hours (in all wells).
 o Application of sulfamic acid (only in some wells).
o Placing a new production column (only in some wells).
o Placement of selected gravel (only in some wells).
o Pumping test (in all wells).

Rehabilitation of the pumping equipment

 18 wells were rehabilitated, the RIII rebuilding station of Chimbote, with the following
works:
o Supply and installation of new impeller bodies (in most wells).
o Repair of existing impellers (only in some wells).
o Supply and installation of some new elements of the pumping column
o Exterior and interior (in all wells).
o Rehabilitation of discharge shafts
o 18 wells were rehabilitated, the RII and RIV refueling station of Chimbote, and
the following works were carried out:
o Supply and installation of some new elements and accessories of the discharge
shafts.
o Rehabilitation of the Electrical System and motor
o 17 wells were rehabilitated, the RII and RIV refueling station of Chimbote, and
the following works were carried out:
o General maintenance to prolong the life of the engines and supply and
installation of new engines in some cases.
o Change of some accessories of the electrical boards that were in bad condition,
especially of those that provide protection to the motors.

As of December 2013, the physical state of the Tubular Wells is as shown in the following TABLE:

(TABLE 35. TUBULAR WELL SITUATIONAL)

The status of the pumping equipment is Annexed OP-A1.

A. Drive lines

The tubular wells are operated independently or in batteries. Two or three wells use the same
drive lines that are reached to the reservoirs, as shown in the TABLE 36

Battery Wells Reservoirs

Number
1 Well N 3A R-II
2 Well N 5-7A R-II
3 Well N 8, 12, 13 R-II
4 Well N 10, 11 R-II
 5 Well N 14, 15, 16 R-II
6 Well N 4, 18, 19 R-III
7 Well N 21, 22 R-IIIA
8 Well N 20 R-IIIB

B. Storage (reservoirs)

The drinking water storage for Chimbote and New Chimbote is through 15 operative reservoirs,
with a total capacity of 35,900 m3

TABLE 37.

Reservoirs Type Volume m3 Years Physical state

R II A Supported 6,000 57 B
R II B Supported 6,000 37 B
R II C Supported 2,000 1 B
R III Supported 3,650 57 B
R III A Supported 1,000 27 B
R III B Supported 2,000 18 B
R III C Supported 2,000 8 B
R IV Supported 350 37 B
R IV A Supported 500 8 B
RV Supported 600 33 B
R VI A - Plant Supported 1,600 50 Not operating
R VI B - Plant Supported 1,600 40 Not operating
R VII A - Plant Supported 5,000 8 B
R VII A - Plant Supported 5,000 8 B
R VIII Supported 1,000 8 B
Cisterna Garatea Supported 600 36 B
Elevado Garatea
Tank Elevated 200 36 B

C. Line of conduction of treated water

C.1 TABLE 38. By gravity

Diameter Physical
Line (inch) Longitutd (milimeters) Years state
RIII - Plant 14,00 3,990,00 37 R
R II - RIII 32,00 390,00 3 B
R II - RIII 16,00 2,630,00 37 R
R II - Los Pinos 8,00 700,00 57 R
R III B - 8 PP.JJ 12,00 2,800,00 13 B
Treatment plant - 7 AA.HH 20,00 3,950,00 12 B
R III RIIIB - Sector 6 12,00 3,400,00 37 R
R IV - Esperanza alto 6,00 600,00 37 R
R V - San Pedro 6,00 500,00 37 R
Plant - San luis 12,00 3,000,00 12 R
R II - Esperanza baja 8,00 900,00 11 B
R V - Los jardines 6,00 800,00 11 B
Treatment plant - Buenos Aires 12,00 900,00 57 R
Treatment plant - Cistema
Garatea 8,00 600,00 32 R
RII - El Carmen 12,00 500,00 57 R
R III - R II 28,00 1,600,00 8 B

R III - R II 24,00 2,960,00 8 B

R III - RII 20,00 282,00 8 B
R V - San Pedro 6,00 183,00 8 B
RIV - RIVA Esperanza Alta San
Pedro 10,00 228,00 8 B
RVII - Sectors 7 and 8 28,00 695,00 8 B
San Diego Los Almos 16,00 1,421,00 8 B
Villa Maria 1 10,00 2,082,00 8 B
Villa Maria 2 8,00 560,00 8 B
Linea Buenos Aires 16,00 1,622,00 8 B
RVIII - Bellamar 10,00 775,00 8 B
Line El progreso 1 8,00 460,00 8 B

C.2 TABLE 39. By pumping

Diameter Physical
Line (inch) Longitutd (milimeters) Years state
Well 3-R2 8 935 8 Buena
Well 4 R-3 work with batteries with 16 4600 43 Buena
wells
Well 518 and 19
R-2 8 10 46 Regular
Well 7 R-2 12 420 27 Regular
P7, 5-R2 both wells work with batteries 14 570 27 Regular
Well 8-R2 10 400 46 Regular
Well 10-R2 8 90 37 Regular
Well 11-R2 8 344 37 Regular
Well 10, 11-R2 14 1390 37 Regular
Well 12-R2 8 30 40 Regular
Well 13-R2 12 1156 40 Regular
Well 8, Well12, Well 12-R2 14 585 40 Regular
Well 14 R-2 8 260 27 Regular
Well 15-R2 section 1 8 130 43 Regular
Well 15-R2 section 2 14 270 43 Regular
Well 16-R2 section 1 8 90 46 Regular
Well 16-R2 section 2 12 340 46 Regular
Well 14, 15, 16-R2 16 1345 43 Regular
Well 18-R3 8 186 29 Regular
Well 19-R3 section 1 8 30 27 Regular
Well 19-R3 section 2 16 704 27 Regular
Well 19-R3 section 3 including P18 y P-4 16 2630 27 Regular
Well 20-R3 12 3345 17 Buena
Well 21-R3 12 442.4 8 Buena
Well 22A-R3 16 3887.9 8 Buena
R2-R4 8 1415 37 Regular
R4-R5 6 300 37 Regular
R3-R7 14 3930 37 Regular
Cisterna garatea - Elevated tank 8 680.2 32 Regular
PTAP-AH (BELLAVISTA) 8 735 2 Buena
PTAP- BELLAMAR 10 973.2 8 Buena
TOTAL 32223.7

D. TABLE 40. Distribution network

The distribution system of drinking water of Chimbote and New Chimbote has a longitude of
approximately 618.5 km, which 85% are renewed with the PVC tube. Still need to renew the rest
of the old cement tubes.

Accumulated longitud tube by range of years (in mililiters) Total

Diameter
(0-5) (6-10) (11-15) (16-20) (21-25) (26-30) 31+ Diameter
1 1/2 '' 0.00 0.00 0.00 0.00 0.00 0.00 272.60 272.6
2'' 4,658.60 38.50 0.00 0.00 122.90 0.00 2,286.70 7106.7
2 1/2'' 7,719.90 0.00 0.00 0.00 0.00 0.00 1,025.50 8745.4
3'' 18,157.00 5,173.00 276.60 0.00 472.40 0.00 8,820.40 32899.4
4'' 303,774.00 73,319.39 10,545.40 338.00 88.70 8,066.80 28,187.30 424319.59
6'' 72,030.00 16,149.60 2,997.30 0.00 4,004.60 4,263.70 7,230.70 106675.9
8'' 19,509.50 6,736.70 80.4 0.00 4,004.60 1,242.50 6,888.70 38462.4
Total 425849 101417.19 13899.7 338 8693.20 13573 54711.9 618481.99
 E. Re-pumping stations

Due to the topography of Chimbote, there are high zones in North Chimbote that reach up to
two stages: the impulsion from the reservoir R-II to R-IV. And from that reservoir it reached to
another pumping station to R-V.

F. Drinking water chamber of pumping

 The chambers or Cisterna de Nicolas Garatea are the chambers that boost to the most
elevated reservoirs.
 From the Contacto de Cloro reservoir located in Treatment plant of superficial water it is
boosted to the reservoir R-VIII that supplies to the Bellamar Urbanization.

Surface source

 The raw water that supports the Treatment Plant “San Antonio” comes from the river
Santa, by the intermediaries of a water inlet named “La Huanca” located nearby the C.P
Vinzos.

A. Lake storage

 The water channel Carlos Leight supports three storage lakes nominated as N 1,2 and 3.
They have a capacity of 90,000 m3 located in northeast of the treatment plant of
drinking water.
 The main role is to accumulate raw water that reaches through the distribution channel
during the night shift from 11:00pm – 6:00am (7 hours) so it can be used in the process
of purification during the day.

B. Treatment of the drinking water plant of San Antonio

 The treatment plant of the drinking water “San Antonio” has a capacity of 550 l/s
production and counts with the following components:
o Measurement (parshall channel) and fast mixing.
o Four hydraulic flocculates
o Two mechanical flocculates with 6 chambers each.
o Seven settlers
o Eight filters
o Air-water filter washing system comprising:
o Water pumping system (02 pumps)
o Two air blowers
 o High reservoir
o Chlorination room.
o Chemical preparation and dosing room.
o Eight control booths for filter washing and filtered water flow control.

The plant has been reformulated by loaning the PE-P25 during 2005-2006 for the construction
of 2 flocculates. Each has 6 cameras and endowed with a mechanical flocculate driven by an
electric motor with variable speed. The main purpose is to increase production of drinking
water from 310 l/s to 550 l/s

C. Measurement and quick mix of chemical products

The water that feeds the treatment plant comes from the storage Lagunas. Through pipes of
different diameter, it enters to the Parshall gutter where the incoming flow is measured. The
dispensing point is made in order to take advantage of the turbulence caused in the Parshall
gutter to promote rapid mixing of chemicals and facilitate removal.

D. Flocculate

The coagulated water is directed towards the flocculated phase. It consists of the agglomeration
of the destabilized particles with the floccules form. In case of the mechanical flocculates, it will
be promoted by slow stirring in the flocculation chambers. Two mechanical flocculates were
built with 6 chambers each. They will be operating in parallel at the request of Sedachimbote 4
hydraulic flocculate that were planned to demolish. Each flocculate series can be isolated and
removed from operation.

E. Sedimentation

The next process is the sedimentation of the florets formed in the flocculate chambers. The
flocs are sediment by the composition of the superficial casting speed and by the rate of fall of
the flocs. The flocculated particles have different sizes and consequently different
sedimentation rates. The “San Antonio” treatment plant has 7 settlers that have sedimentation
modules that operate in laminar regime and are made up of parallel plates.

F. Filtration

The sediment water is collected by means of the perforated tubes installed above the sheets so
that later it could be routed to the filtration phase. This is a physical process of separating the
solid-liquid or solid-gas.

The “San Antonio” treatment plant operates with 8 filters in a high rate regime with a
decreasing rate. It means that for a flow rate of 550 l/s it operates in an average filtration rate of
249 m3. The filters are double-layered: sand and anthracite supported by layers of gravel resting
on the bottom formed by “California” joists. The filter washing system is made with air and
water through two air blowers and two water pumps.
G. Disinfection

Once the water is filtered and ready to be consumed, it must be guaranteed to be free of
bacteria and viruses. Chlorine is the agent used in the plant to disinfect the filtered water, which
remains in solution in the water without decomposing to the consumer.

At the plant, liquid chlorine is added through the pumping channel to collect filtered water and
the conducted through the Chlorine Contact Reservoir of 1,500 m3. At the end it is mixed before
being deposited in the Reservoirs Storage R-VIIA and R-VIIB of 5,000 m 3 each.

Additionally, it is pumped to the Reservoir R-VIII of 1,000 m 3 capacity where it is distributed to

the population.

TABLE 41. Secondary collectors

Accumulated longitude tube by range of years (in milliliters) Total

Diameter
(0-5) (6-10) (11-15) (16-20) (21-25) (26-30) 31+ Diameter
6'' 8,920.30 2,336.10 183.60 43.4 11,483.40
8'' 330,863.90 93,931.20 4,615.30 10,240.10 28,299.30 7,406.40 30,744.90 506,101.10
Total 339,784.20 96,267.30 4,798.90 10,283.50 28,299.30 7,406.40 30,744.90 517,584.50

TABLE 42. Principal collectors

Accumulated longitude tube by range of years (in milliliters) Total

Diameter
(0-5) (6-10) (11-15) (16-20) (21-25) (26-30) 31+ Diameter
10'' 23,714.70 1,994.40 331.7 1,632.50 735.7 28,409.00
12'' 16,190.80 1,639.90 74.00 57.70 17,962.40
Total 39,905.50 3,634.30 0.00 0.00 331.70 1,706.50 793.40 46,371.40

A. Wastewater pumping chamber

The Chimbote District system evacuates its wastewater to the Bay through the San Pedro,
Palacios, Inca and Trapecio Pumping Chambers. Furthermore, the Chimbote District system
drains by gravity to 2 inverted siphons located at Av. Pelicanos and Av. Pacifico(old) /Samanco
(new). The city of Chimbote has 5 pumped sewage chambers tht are used to gain height where
the topography of the wastewater land do not flow by the gravity to these receptors:

San Pedro Chamber

The residual waters that reach to this chamber from the north of Chimbote are driven to the
same line of impulsion until it reaches to a mailbox 53 located inside the area ENAPU.
Camera palaces
The sewage that arrives in this chamber from Casco Urban and surrounding areas are driven by
a line along the route joins with the San Pedro chamber. It reaches to the mailbox 53 located
inside the area ENAPU.

Ica chamber
The waste water that arrives to this chamber from the central zone of Chimbote, is driven
directly to the sea at the same height of the chamber in Project PE P-25. Improvements were
made in the infrastructure, getting to build cast and protect from the marine erosion. However,
the electromechanical equipment requires a reengineering before the impulsion.

Trapeze chamber
The sewage that arrives in this chamber from the central zone of Chimbote are driven directly to
the Sea at the same height of the same chamber, located in the Urb. El Trapecio.

Villa Maria chamber

The sewage that arrives in this chamber from sector 6 of the District New Chimbote or North
zone are driven towards the Lagoon of Oxidation the Gaviotas. The camera infrastructure is
good because it has been built 8 years ago under the Special Program PE-P25 development.

The following status of the pumping chambers are shown in the following TABLE 43:
 B. Treatment of residual water plant

In New Chimbote exists 2 treatment of residual waters plants named “Las Gaviotas” and “Center
Sur”. These treatment of residual water plants use organic materials to oxidize the organic
matter. In the biological process, algae and bacteria, the sun, air and temperature play a very
important role.

Treatment plant “Las Gaviotas”

The drains that come from Casco Urbano and surroundings arrive at the Wastewater Treatment
plant Las Gaviotas through an inverted Siphon and another one from the Villa Maria chamber.
Las Lagunas and the Las Gaviotas consist of the following units:
 6 Primary lagoons (16.5 Has)
 3 Secondary lagoons (4.5 has)
In 2013 these lagoons have treated an average annual volume of 5,652,934 m 3 with a flow of
175.88 l/s.

Treatment plant “CENTRO SUR”

The drainage from the urban expansion of New Chimbote arrives at the Centro Sur residual
water treatment plant. It includes a primary facultative lagoon of 2.65 hectares, which consists
of the following structures:
 Chamber of gates
 Flow meter (Parshall channel)
In 2013, this lagoon has treated an average annual volume 1,251,613 m 3 with a flow of 38.94
l/s, whose effluent flows into a nearby land are used by a farmer for irrigation of high stem
plants and the rest has formed a lagoon.

C. Direct discharges to the sea

In Chimbote there are no residual water treatment plants and due to the topography of
Chimbote, not all drains reach to the pumping chambers. Part of them are discharged directly to
the sea without treatments which are:
 Direct discharge around Jr. Lambayaque
 Direct discharge around Jr. San Pedro
 Direct discharge around Jr. Tacna
 Direct discharge around Jr. Amazonas
 Direct discharge around Jr. Huánuco
 Direct discharge around Jr. Chancay
 Direct discharge around Jr. Ramón Castilla
 Direct discharge around Jr. 28 de Julio
  Direct discharge around Jr. Bolivar

 Direct discharge around Av. Iquitos

1.3.2 CASMA

Drinking water service

The city of Casma is supplied by water from a natural underground source through 4 Tubuluar
wells, which have the following characteristics in TABLE 44:

Actual production Capture rate Electric monitor

Well (lps) (l.ps) Pump HP HP
Well N1 18.4 30 27 30
Well N5 22.2 30 54 60
Well N6 15.7 20 27 30
Well N7 11.5 20 27 30
Total 67.8 100
All pumping stations work with electricity. The primary network supplies 10,000 volts whose
transformation for the voltage use at 440 volts to be made at the electrical substations in Caseta
or in substation air. The monthly demand recorded at the pumping station is at 100 kw with a
tariff option in MT3. As of December 2013, the physical state of the Tubular Wells is as shown in
the following TABLE 45:
In 2012, with the Ancash Government Regional finance, the Tubular well was drilled in the Villa
Hermosa sector with a production of 25 l/s. The same will supply the drinking water to that
zone. Because of the lack of equipment, another Tubular well was drilled and the work was
stopped because of lack of finance.

TABLE 45:
Station Brand # stage Model Status
National MC - M9
5 Pump acquired by COSAPI in 1997
Pumps -5
Well N-1
Through ADS N013-2005, AQUAPRO was acquired.
CASMA Gulds
5 9RCLC-5 With requirement data Q = 25 lps, ADT = 55m.
Pumps In february 25th, 2011, the dismount was done. Pump
repaired with the impellers to recover the flow of 25
Well N-2 National MC - M9 Pump acquired by COSAPI in 1997
5
CASMA Pumps -5 The well is abandoned since 2004 because of bad
Installedproduction and bad
2001 by MASSA, water quality
belonging to the project
Well N-5 SECHIN with 6 stretches and
Between 04-09 in 2001 the maintenance2 halvesof the
HIDROSTAL 6 10GM
CASMA equipment well08,
was realized. A new stretch was
On February 2012, the start of the pump
dismantling by water outlet on the shaft was realized.
Installed in 2001 by MASSA belonging to the
project SECHIN
Between November 21-26th, 2008 the dismount was
proceeded. The pumping
Between September body was maintained.
30th-October The
2nd, 2008 the
change
Between ofNovember
the impellers were
16th, made
2010 , thethe same aswas
dismount the
effect because of bad production. Profundity =
In April 24th, 2013, the electric motor smells like
burnt. It was moved to Chimbote. Bearing change,
Between June 20-21st in 2013, the pump was
HIDROSTAL 9 8GH
dismounted and moved to Chimbote. It was disarmed
With dates November 14, 15, 16 and 17th, 2013, the
Well N-6 10 dismount of the new pumping equipment was
CASMA GOULDS 6 WALC In December 13th, 2013 the electromagnetic
macromeditor was installed. Counts with a flow of 18
In 2001, the project SECHIN belongs to MASSA
Between November 27th and December 6th, 2007,
the maintenance
In September of the 2010,
10-14th, pump taking
was done, interiorofand
advantage the
Well N-7 Huarmey pump.
Between JuneA15-27th,
dismount, maintenance
2012, in well
the dismount wasN 7
CASMA HIDROSTAL 13 7MQH
applied. Repairment was done. Change of the axis of

Storage
Casma has 2 reservoirs of operative storage with a total capacity of 2,700 m 3. At that time, the
Regional Government of Ancash in 2012 has built another reservoir with a capacity of 2,000m 3
to support Villa Hermosa sector. TABLE 46
 Reservoir Elevated/Supporte Volume (m3) Years Physical state
RI d
Supported 700 37 Bueno
RII Supported 2,000 17 Bueno
Total 2,700

Treated water drive

a) By gravity. TABLE 47

Diameter Longitude
Line (inch) (ml) Years Status
RI - Up, medium, 10 20 40 Regular
RII - low
Up, zone
medium, 10 80 40 Regular
low zone
Total 100

b) By pumping TABLE 48

Diameter Longitude
Line (inch) (ml) Years Status
Impulsion line 10 550 7 Regular
PZ 01 AL R1
Impulsion line 6 5 14 Regular
PZ 05 AL R2
Impulsion line 8 10 14 Regular
PZ 05 AL R2
Impulsion line 10 1,000 14 Regular
PZ 05 AL R2
Impulsion line 12 2,500 14 Regular
PZ 05 AL R2
Impulsion line 6 15 14 Regular
PZ 05 AL R2
Impulsion line 6 10 14 Regular
PZ 07 AL R2
Total 4090

Distribution network – TABLE 49

The distribution network of drinking water of Casma has a longitude approximately 79 km,
which 60% of the old tubes were renewed. PVC tubes were financed by the Ancash Regional
Government.

Diameter Accumulated longitude of tube by range of years Total

(mm) (0-5) (6-10) (11-15) (16-20) (21-25) (26-30) 31+ Diameter
63 2,000 0 0 0 0 0 1,500 3,500
75 7,722.50 0 0 0 0 0 0 7,723
90 901.9 0 0 0 0 0 3,584.30 4,486
110 30,861.54 0 0 0 0 0 20,574.36 51,436
160 5,046.40 0 0 0 0 0 2,999.90 8,046
200 2,416.90 0 0 0 0 0 1,601.40 4,018
Total 48,949 0 0 0 0 0 30,259.96 79,209
Matrix networks – TABLE 50

Diameter Accumulated longitude of tube by range of years Total

(mm) (0-5) (6-10) (11-15) (16-20) (21-25) (26-30) 31+ Diameter
250 865 0 0 0 0 0 109 974
315 632 0 0 0 0 0 1,611 2243
Total 1497 0 0 0 0 0 1720 3217

Sewerage service

 The sewage networks have been renewed financed by the Regional Government of
Ancash with PVC pipes ISO4435. The same ones evacuate the gravity the domestic
residual water to a primary oxidation lagoon.
 The drainage network of Casma has a length of approximately 71 km, and 60% of the
network was renewed with PVC pipes financed by the Regional Government of Ancash.

TABLE 51 – EMISORS

Diameter (mm) Longitude Years Physical Type of

Oxidation lagoon 450 (ml) 842 status
4 GOOD PVCtubes
400 2,414.00 3 GOOD PVC
350 500 35 BAD CSN
Total 3756

TABLE 52 - Principal collectors

Diameter Accumulated longitude of tube by range of years Total

(mm) (0-5) (6-10) (11-15) (16-20) (21-25) (26-30) 31+ Diameter
10'' 727.9 2,420.30 3148.2
12'' 1,319.50 1,860 3179.5
14'' 27.4 27.4
Total 2074.8 4,280.30 6355.1

TABLE 53 – Secondary collectors

Accumulated longitude of tube by range of years 31+

Diameter (0-5) (6-10) (11-15) (16-20) (21-25) (26-30) Total
6'' 2,036.16 1,357.44 3393.6
8'' 36,871.62 1,860 38731.62

Total 38907.78 3,217.44 42125.22

A. Residual water treatment plant

Treatment plant N 2

 In Casma, the Oxidation Lagoon there is currently a facultative Oxidation Lagoon named
No. 2 because the oldest one (No.1) is not operating. In the previous years it was dried
due to deforestation. On the other hand, the farmers of Tabón Alto was not
implemented, it was abandoned.
 The drains that belong to the Casma reach by gravity up to the primary oxidation lagoon
No.2. It has an area of 2.00 Ha and does not currently operate efficiently because it is
undersized and closed.
 In 2013, this lagoon has treated an average annual volume of 1,480.486 m 3 with a flow
of 46.06 l/s whose effluent flows into a drain which the water is used by the farmers in
the surrounding areas.
 Furthermore, the Ministry of Housing, Construction and Sanitation built PVC DN 400 mm
tubes of 11km long. Some things to build is a pumping station and the Oxidation
Lagoons that will be located in Pampas de Tortugas.
 Once these works are done, it will allow to Oxidation Lagoon N 2 to be inoperative and
transfer the wastewater from Casma to these new lagoons.

1.3.3 Huarmey

Drinking water service

Huarmey is supported from an underground natural source through an unique tubular well with
the following characteristics:

TABLE 54:

Wells Actual production (lps) Flow rate Pumping HP Electric motor HP

Well N 1A 35.6 50 90 100
Total 35.6 50
 The underground water quality is not in the optimal condition because of the high level
of Manganeso that exceed the limit.
 In March 2014, the tubular well N 2 will start functioning financed by Antamina Mining,
with a production flow of 50 l/s
  The pumping station works with electrical energy. The primary network is 10,000 volts
with a transformation for the tension use of 440 volts. The monthly demand that will be
registered is about 55 kw.

In December 2013, the tubular wells of the physical status are shown in the TABLE 54:

SITUATION STATUS OF TUBULAR WELLS IN HUARMEY

Local Statio Drilling Operative Year Rehabilitati Renewe Utility life Life Actual
Huarme n 1
Well year status
M 2010 on year
Mant.Prev d Year expectanc
Finished expectanc
Finished situation
y Well 2006 Operative 7 24 24 Well with
1A status regular

Networks

The drinking water network in Huarmey has a longitude of approximately 38.7 km, which 60%
have been renewed with PVC tubes financed by the Ancash Government.

TABLE 55: Matrix Networks

Diameter Accumulated longitude of tube by range of years Total

(mm) (0-5) (6-10) (11-15) (16-20) (21-25) (26-30) 31+ Diameter
160 4,127.78 0 0 0 0 0 2,751.85 6879.63
200 710.95 0 710.95

Total 0 0 0 0 0 0 0.00 7590.58

TABLE 56: Distribution network

Diameter Accumulated longitude of tube by range of years Total

(mm) (0-5) (6-10) (11-15) (16-20) (21-25) (26-30) 31+ Diameter
90 2,404.53 0 0 0 0 0 1,603.02 4007.55
110 16,270.00 10,847 27116.66
 Total 0 0 0 0 0 0 0.00 31124.21

Characteristics and interventions about the pumping equipment shown TABLE 58:
Station Brand Stage # Model Status
Well N 1 - Huarmey Hidrostal 3 12GH The pump Is installed for 5 years old, but
the pumpto
Acquired has at least
update the10current
more years
time for
obsolescence under these condition: Q =
55 LPS, ADT = 80 m. With 12 column
HIdrostal 4 12GH-4 sections, it maintains the power of the
actual motor of 85 HP. Date of
installation: Oct 18, 2002 at 10am
Well N 1A - Huarmey Between Sept 18-20,2009, the
disassembly has been done, 9 speakers,
In Jan 28th, 2009 the local well N5 was
installed. All goods were acquired
From Sept 8-10, 2010, a new equipment
12CLO- was installed in well N 1 A with 11 whole
Goulds 5
58 Between April 26-27, 2013, the dismount
of the stretch has been applied. Stainless
In August 17th, 2013 a malfunction was
treated. Reparation done. All copies were

TABLE 59: Storage (Reservoirs)

Elevated/Supporte Physical
Reservoir d Volume M3 Years status
RI Supported 2,000 37 Good
R-9
October Supported 250 37 Good
Total 2,250

Sewerage service
 The domestic and industrial commercial residual water from Huarmey such as in the
northern, central and southern parts. Also, in Huarmey port it flows by gravity through a
network of DN 200 mm by secondary collectors installed along the Avenues, shreds and
streets of the city.
 The secondary drain networks in the city of Huarmey has an approximate longitude of
41 Km, which 60% of the tubes were renewed by PVC tubes.

TABLE 60: Secondary collectors

 The secondary collectors have a diameter of 200 mm

Diameter Accumulated longitude of tube by range of years Total

(mm) (0-5) (6-10) (11-15) (16-20) (21-25) (26-30) 31+ Diameter
 8'' 23,528.27 0 0 0 0 0 15,685.51 39213.78

Total 23528.27 15,685.51 39213.78

TABLE 61: Principal collectors

Diameter Accumulated longitude of tube by range of years Total

(mm) (0-5) (6-10) (11-15) (16-20) (21-25) (26-30) 31+ Diameter
10'' 2,421.10 0 0 0 0 0 2421.1

Total 2421.1 0.00 2421.1

A. Pumping chamber of served water

Huarmey counts with 4 pumping chambers of residual waters and are used to gain height where
the topography land of served water are ran by gravity until the receptors. These cameras are:

 Pacaysito chamber
o Residual waters reach to the north zone of Huarmey. They are driven to the
Oxidation Lagoon. It does not work at 100%
 Huanchaquito chamber
o The residual water reach to Casco Urbano and surroundings. They are driven to
the Oxidation Lagoon. But during the journey, farms use clandestinely for the risk
of crops. This practice has been done for a long time and the Oxidation Lagoon
has stopped to work.

 Chamber October 9th

o The residual water reaches to the Population of A.H. October 9 th of Huarmey. This
chamber was built by the ANTAMINA company and transferred to
SEDACHIMBOTE S.A. for operation and maintenance.

The current situation of the pumping chambers are shown in the following TABLE 62:

Designatio
n Location Equipment Hydraulic installation Observations
Huarmey Av. Counts with Requires total The configuration of the dried
chamber Panamerican one obsolete renovation of the and humid chambers limits
Av. Counts with 2 The hydraulic The equipment capacity have
 Chamber diameter =
3.20m

Pacaysito Panamerican pumping remained undersized because

Wet chamber = 1.20m
chamber a Norte equipment, of the population growth. The
Huarmey regular status conditional operation need to
installed in be recalculated. Also a bar
1998. Since chamber needs to be built.
the
Huarmey Huarmey Port Counts with 2 The impulsion of the The bar chamber has a bad
chamber submersible residual waters design that allows particles to
October A.H October Counts with 2 The impulsion of The bar chamber has a bad
9th 9th - pumping residual waters reach design that allows particles to

B. Treatment plants of residual waters

In Huarmey, 3 treatments plants of residual waters are operating named “Pacaysito”, “October
9th” and “Huarmey port”. The oldest plant is named “Huanchaquito” and was invaded by
farmers and basically does not exist.

The residual water treatment is in the process of stabilization and degradation of the organic
materla. They use natural materials to oxidize the organic material.

Treatment Plant “PACAYSITO”

The drains that are coming from North of Huarmey reach to the Pacaysito chamber and are
driven to the Treatment Plant of residual water “PACAYSITO”, and it has the following units:
 1 primary lagoon of 1.10 Has.
 1 secondary lagoon of 1.18 Has.

In 2013, these lagoons have treated an average volume of 210,257 m 3 with a flow of 6.54 l/s.

Treatment Plant “October 9th”

 The drains of A.H October 9th of Huarmey that reach to the residual water are driven to
the Oxidation Lagoon October 9th, that has the following units:
o 1 primary lagoon of 0.015 Has.
o 1 secondary lagoon of 0.01 Has.

In 2013, these lagoons have an average of 26,282 m 3 with a flow of 0.82 l/s. The primary lagoon
has never been filled. The little water that enters it is infiltrated and evaporated.
“HUARMEY PORT” treatment plant
 The Huarmey drains that reach to the residual water chambers are driven to the Primary
Oxidation Lagoon of 0.82 Has.
 In 2013 these lagoons have an annual average volume of 70,086 m 3 with a flow of 2.18
l/s.
 The treated water from the center and south of Huarmey reach to the Residual Water
Chamber named Huanchaquito.
 In 2013 thus chamber has pumped an average annual volume of 569,447 m 3 with a flow
of 17.72 l/s

1.3. Main operational problems

Chimbote

The EPS (Entidades prestadores de Salud) needs to update the Technical Catastrophe System of
the drinking water and the sewerage.

It is necessary to implement the sector systems to optimize service pressures and when there
are ruptures of poTABLE water pipes.

The smaller service area can be isolated to execute the respective repairs.

The installation of air purge valves has to be implemented to the 100% in order to standardize
the service pressures and to avoid users' complaints of excess consumption.

It is necessary to complete the installation of electromagnetic macromedidores at the exit of

the tubular Wells and to relocate the macromedidor in the Plant of treatment of drinking water.
The present location does not register the flows because the tube works as a channel.

There is no loss control program, which must be implemented in the short term in order to
reduce unaccounted water (ANF).

Being the last user of the Carlos Leigh canal that transfers the raw water from the Santa River, it
does not guarantee a permanent flow to the storage lagoons.

The farmers took the water to their lands which was more visible when they programmed
shutdown water for maintenance.

It is necessary that in the short run the Nepeña channel receives water so it can produce to its
optimal production and in the future to expand.

Although almost all poTABLE water networks have been renovated, there are still some old
cement networks that are pressurized with water. Thus, it is necessary to program the
cancellation to prevent breaks that affect the service of the population.
The final disposal of the drains in Chimbote are directed to the sea without treatment. This is
polluting the medium receptor. In the short run they need to start to study to revert this
situation. In this way, we avoid to be fined from the Entities Inspectors of the environment

The final disposal of the oxidation Lagoon of the Southern Center is not enough which the
effluent is short and the served water is stuck about 30m of distance. The EPS elaborated
respective case studies to determine if the lagoon needs to stop operating and see if they
should build a Pumping Station to move the served water to the Las Gaviotas. It is necessary to
carry out the relevant works in order to definitively solve the problem.

Casma

Approximately 40% of the water and sewerage networks that have more than 35 years of utility
need to be renewed

The Reservoirs R-I and R-II do not have no perimeter fence, which is causing people living in the
surrounding areas to use it as a public latrine.

The Oxidation Lagoons N 2 is not working with efficiency. It is undersized and farmers in the
area of Tabón Ato are claiming their relocation as they claim that they are contaminating their
crops.

They should work faster in the construction works in Pampas de Tortugas.

The Casma Administration lacks basic equipment to deal with more complex technical problems
such as renovating water pipes and drainage.

The Administration does not have a mobile mobility for the transfer of personnel, materials and
equipment. They only have one motokar.

Huarmey

Up to 2013 the water tubes and the drains have been renewed financed by the Ministry
Housing, Construction and Sanitary.

40% of the water networks and the sewage need to be renewed which have 35 years of utility.

The frequent clog is complicating the normal functioning of the draining system.

The Reservoir R-I (V=2,000 m3) y R-9 October (250 m3), do not have perimeter fence. It is making
the other people who live in the surrounding to use the public latrine.
The quality of groundwater has high levels of manganese but not harmful to health. However, it
causes discomfort to users because it causes stains on clothing. This can be increased by the
presence of chlorine.

Well # 1 lacks a protection booth. Someone needs to build security to the pumping equipment
for the short term.

There are problems in the final drainage of the "Pacaysito" WWTP. Farmers do not allow the
treated effluent to flow into a channel.

There are evacuation problems of served water of the pumping chamber “Huanchaquito”
because the oxidation lagoon does not exist. The farms have broken or drilled the impulsion
tube of DN 10’’ to give water to the crops.

The Administration does not count with a transportation for the staff, materials and equipment.
They only count with a motorcar.

1.3.5 Quality service

Quality control is a functional equipment and depends according to the organization chart of
the company of the Technical Management.

Currently we have 1 specialist supervisor, 2 analysts (1 microbiologic and 1 physical chemical

analyst) and 1 technical trainer.

SEDACHIMBOTE S.A counts with 1 laboratory to control the drinking water quality. However,
does not count with the analysis of residual waters laboratory. Therefore, we do not have
materials, equipment, nor personal for residual water laboratories.

Laboratory quality lab

The Laboratory was built by the PE-25 Project in 2006 and is located within the Treatment Plant
facility. The laboratory design is not adequate because the perimeter of the windows are tall
and do not close. The floors are very porous. The luminaries are heavy and the TABLEs are not in
good conditions. The laboratory is located approximately 0.70m low-level floor which makes the
laboratory vulnerable against external environment and anthropic.

Microbiology, physical and chemical analysis are made in the laboratory.

You will be able to see in TABLE 63 the quality water analyzed in the laboratory SEDACHIMBOTE
S.A

Microbiological parameter Laboratory reference

controls
Total Coliforms
Thermotolerant coliforms SEDACHIMBOTE S.A
Heterotrophic bacteria
Eschericchiacoli
Helmintos eggs Third accredited laboratory
Others that neeeds evaluation
Chemical and physical
Residual chlorine
SEDACHIMBOTE S.A
Turbidity
pH
Conductivity
Color
Total hardness
Calcic hardness
Magnesian hardness
Chlorides
Sulfates
Nitrates
Aluminum
Iron
Manganese
Toxics: Arsenic, Lead, Cadmium, Third accredited laboratory
Mercury
Nitrites
Ammoniac Nitrogen
Dissolved oxygen(*)
DQO
DBO5
Pesticides (*)
Oil and grease
Free cyanide
Cyanide wad
Aromatic hydrocarbons (*)
Phenols (*)
COVs (*)
Trihalometanos(*)
Fluoruros (*)
 Others that neeeds evaluation

Current equipment

The Quality Control counts with 40% of the equipment donated by PRONAP.
In 1998, 30% was acquired. In 990, 19% and in 2010 with the rest of the years 2003, 2006, 2011
the difference. Equipment TABLE N 2 requires inversion and minimal adjustments to improve
the control

TABLE 64: Parameters, laboratory equipment and current equipment status

Parameter Current laboratory Year of

Status It requires..
Analysis equipment purchase
2 Vacuum suction 1998 Regular status, old New equipment
pump.
1 Filtration ramp, 3 1998 operative model
Good status, (without oil lubricant)
New complete
Filters,
1 Maria and filter steel
Incubator for operating
Good status, equipment of filtering
1998
Fecal Coliforms
1 small Model
Incubator for operating
Good status, Maintenance service:
Total and fecal 1990
coliforms fecal coliforms operating corrective and
1 electric incubator 1998 Good status,
preventive. Calibration
model 15E HAC/SHELL operating. It was
Heterotrophic 1 Incubator for 1990 Regular status, service. Need to buy an
bacteria heterotrophic bacteria.
1 automatic autoclave operating
Regular status, incubator and a Maria
1998
Incubator with 80L
1model
manual EAGLE TEN
autoclave, 1990
operating with some
Not operating capacity with multiple
model:
Stove metal
for incubator 1990 Regular status, but tubes
mode:
Stove for215 F, Brand:
heterotrophic 1990 being evaluated
Regular status to
Microscopic bacteria incubator
Trinocular simple 2011 Good status, Buy: Inverted trinocular
observation
Free and total microscope
3 digital colorimeters, 2010 operating
Operating status Need:microscope
calibration and
residual chlorine brand HACH pocket II maintenance service
Turbid 1 porTABLE turdimeter 2006 Good status, Buy: 1 turdimeter, 1
model: 2100P brand operating multiparameter with
pH 1 porTABLE 2006 Good status,
sound field. 1 TABLE
Conductivity, peachmeter
3 porTABLEmodel 2010 operating
Operating status peachmeter. Need:
total dissolved
Sulfates conductivity meter
Magnetic shaker, 2010 Good status,
Dissolved brand oxygen
Dissolved IKA 1998 operating Out
Not operating. Buy new equipment
oxygen
Arsenic meter, model DO 175
Spectrophotometer 2003 of phase
Operating status. In Training for chemist.
UV/visible brand: standby until the gas Purchase and
CURRENT COMPLEMENTARY EQUIPMENT
Water distiller. Mode: FI-STREEMM II - 2 S. 1998 Regular status, Need to buy new
brand:distiller,
Water BARNSTEAD
model/ A1011-B
THERMOLYNE
brand 1990 lacking of resistance equipment
Regular status
SYBRON/BARNSTEAD
Digital balance model SL - 600 brand 1998 Good status,
SCIENTECH Good operating
status, Balance calibration of
Scientific fisher balance 1990
operating service
Drying and sterilization stove, mode: 1998 Good status,
Drying and sterilization stove, MEMMERT 1990 Good status,
Maintenance and
brand brand PHILIPPS-
Pitch test equipment, Good operating
status,
1998
BIRD(*) operating
Regular status,
Two port refrigerator MAGIC CHEF brand 1998
operating Buy a new one

Quality control plan

There is currently the D.S. N 031-2010 “Approve the Regulation of the quality water or human
consumption.” The Health entity will approve with the ministerial resolution of the normative
documents such as regulations and technical standards. Reference of the formulation and
application of the Quality control plan (PCC). So far the normative documents were not
approved nor emitted. The current PCC has provisionally considered the current regulations as
well as the control base of the characteristics of our systems. These are the followings:

 Resolution of the Directing Council N 015-2012-SUNASS-CD. “Approval of the sampling

frequency of the parameter that should be controlled by the Sanitation Service
providers. –EPS regarding the quality of drinking water”.
 D.S N 031-2010 – SA. “Approval regulation of the quality of water for human
consumption”
 Directing Council resolution N 011-2007-CD. “Regulation of Quality of the Provision of
Sanitation Service”
 Supreme Decree N 002-2008-MINAM. “National Environmental Quality Standards of
Water”
 WHO Guidelines for Water Quality. 2004
 Internal criterion of the specialist supervisor of Quality Control of SEDACHIMBOTE S.A
considering parameters problem and process of laboratory implementation.

The details about the programmed controls are found in the control quality panel 2014.

The EPS SEDACHIMBOTE S.A. is considered as a national big company for administrating a
population of 100,000 habitants

Quality parameters that fail the D.S. N 031-2010-SA

According to the evaluations, such as the quality water evaluation in each system component.
The parameter control has been determined where the LMP exceed.

In North of Chimbote, the drinking water system counts with underground water exceeds the
LMP in the conductivity parameters.

In New Chimbote, it does not exceed in any quality parameter that supplies by the surface
water.
In Casma, selenium was detected in 2 wells (which was reported to SUNASS, however. It will
confirm results in parallel evaluations in two different accredited laboratories).

In Huarmey, the Manganese parameter exceeds the LMP.

You can visualize the % that fails in period IV trimester 2013

TABLE 65. Number of samples that fail the LMP of the quality water for the human
consumption in SEDACHIMBTE S.A

Local Component Parameter # of samples Total of % failure of

that fails
Conductivit that fails the analyzed LMP
y 57.00 207.00 27.54
Distribution
network Total 2.00 207.00 0.97
dissolved
Total
(includes 4.00 33.00 12.12
sectors 1-5) hardness
Chlorides 17.00 34.00 50.00
Sulfates 21.00 25.00 84.00
Conductivit
y 15.00 124.00 12.10
Chimbote
Chlorides 4.00 10.00 40.00
Reservoir Sulfates 10.00 10.00 100.00
Conductivit
y 21.00 59.00 35.59
Undergroun Total 6.00 59.00 10.17
d source dissolved
Total 19.00 20.00 95.00
hardness
Chlorides 7.00 28.00 25.00
Sulfates 6.00 27.00 22.22
Distribution Manganese 5.00 5.00 100
Huarmey network
Reservoir Manganese 2.00 2.00 100
Undergroun Manganese 2.00 2.00 100
d source
Inside the annual Quality of Planning control, the number of minimum samples for the analysis
of each parameter is programmed.

For the determination of the parameters, the compliance of the current regulation was
considered as well as the criteria of Quality Control. Therefore, the parameters considered as
mandatory control (PCO) and the additional mandatory control parameters (PACO) are included
in the Quality Control Plan.

The Quality Control is also evaluating others parameter controls as well as to verify impacts on
the source by anthropic activities. The summary TABLE show the minimum number of samples.
The number of samples indicated may be increased by field evaluation criteria such as
identification of a high quality hazard to water quality, loss of water quality, verification, re-
sampling, research, etc. We can also add some control parameters if necessary.

1.3.6 Continuity service

The continuity of the drinking water service in 3 local areas administered by the EPS varies. In
case of Chimbote and New Chimbote, the average annual continuity in 2013 is 11.84 hours per
day. In Casma, it’s 16.52 hours per day and in Huarmey, 9.1 hours per day.

TABLE 66.

CHIMBOTE
Product (Avg. per active
Month Continuity(hr.) Active connectors
connectors)
January 11.57 64,744 749,140.50
February 11.56 64,975 750,992
March 11.55 65,056 751,603
April 11.54 65,205 752,410
May 11.52 65,506 754,829.50
June 11.39 65,478 745,758.50
July 11.59 66,950 776,011
August 12.27 67,726 830,904
September 12.3 67,969 835,845.50
October 12.27 68,249 837,423
November 12.2 68,391 834,400
December 12.19 68,619 836,702
TOTAL 798,868 9,456,019.00
WEIGHTED AVERAGE ANNUAL 11,84
THE WIEGHT AVERAGE CONTINUITY OF CHIMBTE IN 2013 IS 11,84 HR/DAY

TABLE 67
CASMA
Month Continuity(hr.) Active connectors Product (Avg. per active
January 20.73 5,979 connectors)
123,939.00
February 20.73 5,982 123,996
March 21.46 5,981 128,367
April 13.86 5,987 82,956
May 13.50 6,002 81,007.00
June 13.60 6,007 81,666.00
July 13.59 6,018 81,781
August 13.60 6,024 81,902
September 13.60 6,034 82,037.00
October 10.07 6,048 60,890
November 21.81 6,041 131,769
December 21.81 6,048 131,917
TOTAL 72,151 1,192,227.00
WEIGHTED AVERAGE ANNUAL 16.52
THE WIEGHT AVERAGE CONTINUITY OF CASMA IN 2013 IS 16,52 HR/DAY

TABLE 68.

HUARMEY
Month Continuity(hr.) Active connectors Product (Avg. per active
January 9.56 4,211 connectors)
40,248.00
February 9.58 4,231 40,527.00
March 9.61 4,267 40,992.00
April 9.65 4,295 41,461.00
May 9.47 4,296 40,692.00
June 8.76 4,302 37,691.25
July 8.97 4,308 38,656.00
August 8.72 4,351 37,947.75
September 8.73 4,377 38,194.7500
October 8.71 4,388 38,199.25
November 8.75 4,402 38,498.50
December 8.75 4,415 38,633.50
TOTAL 51,843 471,741.00
WEIGHTED AVERAGE ANNUAL 9.1
THE WIEGHT AVERAGE CONTINUITY OF HUARMEY IN 2013 IS 9.10 HR/DAY

In the following charts (TABLE 69) we will see the continuity of supply sectors:

WEIGHTED AVERAGE CONTINUITY 2013 - CHIMBOTE AND NEW CHIMBOTE

Sector Annual weighted avg. Average active Product (Average x active
Sector 1 continuity (hr/day) 7.00 connectors 5,725 connectors) 40,266
Sector 2 6.33 8,535 54,066
Sector 3 6.68 10,483 70,039
Sector 4 19.81 3,935 77,964
Sector 5 13.34 8,476 113,060
Sector 6 12.65 7,182 90,870
Sector 7 23.33 3,256 75,944
Sector 8 22.69 5,361 121,626
Sector 9 9.230 5,357 49,463
Sector 10 11.50 8,235 94,703
TOTAL 66,545 788,001
WEIGHTED AVERAGE CONTINUITY OF CHIMBOTE/NEW CHIMBOTE 11.84
(HR/DAY)

TABLE 70
WEIGHTED AVERAGE CONTINUITY 2013 - CASMA
Sector Annual weighted avg. Average active Product (Average x active
Sector 1 continuity (hr./day) 16.52 connectors6,013 connectors) 99,328
TOTAL 6,013 99,328
WEIGHTED AVERAGE CONTINUITY OF CASMA (HR/DAY) 16.52

TABLE 71
WEIGHTED AVERAGE CONTINUITY 2013 - HUARMEY
Sector Annual weighted avg. Average active Product (Average x active
Sector 1 continuity (hr./day) 9.10 connectors4,320 connectors) 39,312
TOTAL 4,320 39,312
WEIGHTED AVERAGE CONTINUITY OF CASMA (HR/DAY) 9.10

1.3.7 Service pressure

The average pressure services vary and are done daily, taking in consideration the readings in
the faucets against fire and water connections. In 2013, the average annual pressure in
Chimbote, New Chimbote, Casma and Huarmey satisfy the Law OS.050 of the National Building
Regulations (RNE) with 10 mca. Chimbte is 13.07 mca, Casma is 14.53 mca, and Huarmey 11.88
mca. The average minimum annual pressures during 2013 in Chimbote and New Chimbote was
12.23 mca. Casma 9.99 mca and Haurmey 9.49 mca

The following chart shows the average annual service in 2013:

TABLE 72
CHIMBOTE
MONTH Average pressure (mca) Average active Product (Average x active
January 12.46 connectors
64,744 connectors)
806806.0738
February 12.23 64,975 794953.0928
March 13.15 65,056 855331.1289
April 12.39 65,205 807777.6913
May 13.39 65,506 877320.5474
June 12.92 65,478 845821.3735
July 13.01 66,950 871288.6504
August 12.76 67,726 864171.803
September 13.53 67,969 919910.3116
October 13.93 68,249 950526.6437
November 13.50 68,391 923157.3697
December 13.43 68,691 921835.1714
TOTAL 798,940 10438899.86
ANNUAL WEIGHTED AVERAGE 13.07
THE WEIGHT AVERAGE PRESSURE OF CHIMBOTE 2013 IS 13,07 MCA

TABLE 73.

CASMA
MONTH Average Average active Product (Average x active connectors)
January pressure
16.78 connectors 5,979 100331.4536
February 9.99 5,982 59771.17668
March 11.89 5,981 71136.23000
April 18.41 5,987 110202.8613
May 18.44 6,002 110685.6395
June 15.72 6,007 94427.11389
July 15.72 6,018 94602.37943
August 14.29 6,024 86067.42862
September 13.68 6,034 82539.61467
October 10.75 6,048 64991.84584
November 17.72 6,041 107018.4793
December 10.96 6,048 66285.74353
TOTAL 72,151 1048059.966
ANNUAL WEIGHTED AVERAGE 14.52
THE WEIGHT AVERAGE PRESSURE OF CASMA 2013 IS 14.53 MCA
MAXIMUM PRESSURE 18.44 MAY
MINIMUM PRESSURE 9.99 FEBRUARY

TABLE 74.

HUARMEY
MONTH Average Average active Product (Average x active connectors)
January pressure
14.24 connectors 4,211 59978.4216
February 17.76 4,231 75134.22
March 17.77 4,267 75820.10
April 9.49 4,295 40778.39008
May 10.10 4,296 43387.13502
June 11.17 4,302 48042.77273
July 10.40 4,308 44812.56507
August 10.40 4,351 45266.24153
September 10.40 4,377 45538.28874
October 10.40 4,388 45651.0661
November 10.40 4,402 45800.11029
December 10.40 4,415 45936.76992
TOTAL 51,843 616146.0811
ANNUAL WEIGHTED AVERAGE 11.88
THE WEIGHT AVERAGE PRESSURE OF HUARMEY 2013 IS 11.88 MCA
MAXIMUM PRESSURE 9.49 APRIL
MINIMUM PRESSURE 17.77 MARCH

In the following chart you can see the weighted average pressure by sectors:

TABLE 75

Weighted average pressure - 2013 - Chimbote

Annual Average Product Min. Pressure (MCA) Max. Pressure (MCA)
Sector weighted active (Average x MONTH PRESSURE MONTH PRESSURE
SECTOR avg. connectors active
1 12.65 5752 72754 January 11.217 October 13.9847
SECTOR
2 13.65 8535 116498 April 11.9379 October 16.3269
SECTOR
3 10.94 10483 114706 April 9.92 December 11.655
SECTOR
4 11.39 3935 44832 January 8.354 May 13.51
SECTOR
5 12.99 8476 110084 February 11.21 May 14.79
SECTOR
6 13.99 7182 100510 January 11.33 May 14.97
SECTOR
7 13.22 3256 43053 April 12.34 January 15.65
SECTOR
8 12.92 5361 69258 April 11.13 October 15.31
SECTOR
9 11.11 5357 59497 April 9.9 September 12.21
SECTOR
10 16.84 8235 138715 August 14.49 January 18.89
TOTAL 66572 869907
TABLE 76

Weighted average pressure - 2013 - CASMA

Annual Average Product Min. Pressure (MCA) Max. Pressure (MCA)
Sector
weighted active (Average x February May
SECTOR avg. connectors active
1 14.53 6013 87363 9.99 18.44

TABLE 77

Weighted average pressure - 2013 - HUARMEY

Annual Average Product Min. Pressure (MCA) Max. Pressure (MCA)
Sector
weighted active (Average x April March
SECTOR avg. connectors active
1 11.88 4320 51325 9.49 17.77

The drill of new wells in the second five-year term increased the coverage of the micro
measurement. A lost control program will improve the continuity and average annual pressures
in those three locals scope, as shown in TABLE 78

Average continuity 0 1 2 3 4 5
Chimbote and New Chimbote Hr/day 11.84 11.84 11.85 11.85 11.87 11.89
Casma Hr/day 16.52 16.55 18.3 20.3 22 23
Huarmey Hr/day 9.1 11.28 11.66 13.01 13.83 14.53
Average pressure 3
Chimbote and New Chimbote m.c.a 13.07 13.17 13.27 13.37 13.47 13.57
Casma m.c.a 14.53 14.63 14.7 14.8 14.9 15
Huarmey m.c.a 11.88 11.95 12.1 12.25 12.35 12.45
Minimum average pressure 3
Chimbote and New Chimbote m.c.a 12.23 12.33 12.43 12.53 12.63 12.73
Casma m.c.a 9.99 10.1 10.2 10.3 10.4 10.5
Huarmey m.c.a 9.49 9.6 9.7 9.8 9.9 10

1.3.8 Unbilled water (ANF)

At the moment the Unbilled Water data (ANF) of SEDACHIMBOTE are not reliable because they
do not allow to accurately distinguish the actual percentage of technical and commercial loss.

The unbilled water results to relate with the billed volumes with the production reports of
drinking water in 2013. The ANF has been 38.19% in EPS level. This illustrates that the company
has a high unaccounted water leading to a technical system loss.

The drinking water production reports are not reliable because some tubular tubes are not
registered and those tubes are old and needs to be renewed. For example, the electromagnetic
macro measurer of the Treatment Plant “San Antonio” it’s in a bad location since it was installed
in 2006 with the project PE-P25.

In terms of the technical losses, it has been estimated that the distribution and conduction
networks were the ones with highest contribution percentage because the pipes have not been
renewed and are still on service.

Recently a technical cooperation agreement has been signed between the EPS SEDACHIMBOTE,
the German Government’s Financial Cooperation Agency KFW and the Ministry of Housing,
Construction and Sanitary. The agreement should be valid in 2015 to implement a Water Loss
Reduction program to improve the management of Water Resources in the provision of drinking
water and sanitation services.

The contribution of the KFW consists of 10 million euros for the EPS of Chimbote and Tacna with
a counterpart of the MVCyS of 2.6 million euros.

The participation of SEDACHIMBOTE and its staff is required to comply with the program.

The programs are meant to improve the commercial aspects, removal or plugging of old pipes,
invest in new improvement works, increase in the micromeditor coverage, control of the
clandestine connections. The active or inactive connectors generate a reduction of unbilled
water to 35.2% when the 5th year finishes.

TABLE 79

Invoiced volume 2013

Local Difference Average historical By consumption Invoiced volume
Chimbote Lectures
7,057,468 difference of lectures
3,250,041 allocation
4,097,491 (m3/year)
14,405,000
Casma 932,394 349,976 22,261 1,304,631
Huarmey 575,317 82,806 212,485 870,608
SEDACHIMBOTE S.A 8,565,179 3,682,823 4,332,237 16,580,239
TABLE 80 (Please see Excel attached)

TABLE 81

0 14,444,821 1,370,271 892,828 16,707,920

1 13,718,870 1,241,871 840,056 15,800,797
2 14,091,703 1,252,039 862,458 16,206,200
Billed water
3 14,482,200 1,261,074 885,543 16,628,817
4 14,888,189 1,268,943 909,419 17,066,551
5 15,331,518 1,279,059 934,742 17,545,319
TABLE 82

0 23,942,869 1,944,176 1,121,102 27,008,147

1 21,629,014 1,781,217 1,036,532 24,446,763
2 22,248,883 1,777,400 1,065,156 25,091,439
Produced water
3 22,723,184 1,787,216 1,102,946 25,613,346
4 23,417,347 1,779,401 1,141,738 26,338,486
5 24,125,446 1,789,277 1,172,166 27,086,889

TABLE 83

0 39.70% 29.50% 20.40% 38.10%

1 36.60% 30.30% 19.00% 35.40%
2 36.70% 29.60% 19.00% 35.40%
ANF
3 36.30% 29.40% 19.70% 35.10%
4 36.40% 28.70% 20.30% 35.20%
5 36.50% 28.60% 20.30% 35.20%

TABLE 84. SUMMARY OF THE TECHNICAL LOSSES SEDACHIMBOTE

TREATMENT PLANT 4.7

DRIVING LINE 5
STORAGE 0.5
DISTRIBUTION 15
25.2

TABLE 85.

LOSSES IN CASMA
CATCHMENT 0
DRIVING LINE 2
STORAGE 1
DISTRIBUTION 17
20

TABLE 86.

LOSSES IN HUARMEY
CATCHMENT 0
DRIVING LINE 0
STORAGE 1
DISTRIBUTION 14.5
15.5

TABLE 87. ANF IN %

Item 1 2 3 4 5
Technical losses 24,6% 24,6% 24,6% 24,6% 24,6%
Commercial losses 10,8% 10,8% 10,5% 10,6% 10,6%
ANF 35,4% 35,4% 35,1% 35,2% 35,2%

TABLE 88. ANF IN M3

Item Year 0 Year 1 Year 2 Year 3 Year 4 Year 5

Technical losses 6,648,813 6,015,964 6,177,185 6,306,241 6,487,412 6,673,979
Commercial losses 3,651,415 2,630,003 2,708,053 2,678,288 2,784,523 2,868,591
ANF 10,300,228 8,645,967 8,885,238 8,984,529 9,271,935 9,542,570

Situational status of macromeditors in the tubular wells, treatment plant and reservoirs

In the following chart we will observe the tubular wells relations, the treatment plant of
drinking water and reservoirs that have macromeditors and the current situation that is
functioning.

TABLE 89. Situational status of macromeditors in pumping stations of the tubular wells in
August 2014

TECHNICAL CHARACTERISTICS
STATION OBSERVATIONS
BRAND Ø TYPE SERIE STATUS
WELL N3A MCCROMET 6'' TURBINE 05-07695-6 REGULA Needs to be changed.
ER R
OUT-OF- The Macromeditor
Needs to be changed.
WELL N4A ZENNER 8'' TURBINE WPH-ZF
WELL N5 SIEMENS 8'' ELECTROMAGNE 420902H ORDER
GOOD The Macromeditor
Operating and
WELL N7A FLOWRAM 8'' TIC
ELECTROMAGNE 151
122709 GOOD trustworthyInstalled
Operating.
TIC in
TheMarch 11th,
station 2013.
is out of
WELL N8
service. In 2014, a
WELL N10 ZENNER 8'' TURBINE WPH 2000 REGULA Needs to be changed.
ELECTROMAGNE R The Macromeditor
Operating. Installed
WELL N11 FLOWRAM 8'' 122711 GOOD
TIC
ELECTROMAGNE OBSERVE in March
When the21st, 2013.
installation
WELL N12 FLOWRAM 8''
TIC D finishes, the meditor
WELL N13 FLOWRAM 8'' ELECTROMAGNE 122713 GOOD Operating. Installed
TIC
ELECTROMAGNE N1BN02342 in October Installed
Operative. 2013. The
WEL N14A SIEMENS 8'' GOOD
TIC 5 REGULA May 28th,to2012
Requires be
WELL N15 ZENNER 8'' TURBINE WPH 2000
R changed. The
WELL N16 FLOWRAM 8'' ELECTROMAGNE 122712 GOOD Operative. Installed
TIC REGULA in March 4th,
Operating, but2013.
not
WELL N18 ZENNER 8'' TURBINE WPH 2000
R trustworthy. In 2014,
WELL N19 FLOWRAM 8'' ELECTROMAGNE 122708 GOOD Installed in
MCCROMET TICTYPE
HELICE November
Requires to2013,
be
WELL N20 8'' BAD
ER BRACE 05-07-697- changed. The in Jan
Out-of-service
WELL N21 FLUOMETER 8'' TURBINE BAD
8 2014. Installed in
WELL N22 The well is out of
service because of
PTA ENDRESS 28' ELECTROMAGNE 84070A190 REGULA Installed in 2006 with
TREATME ' TIC 00 R the project PE-P25,
TABLE 90.

Casma
Well N1 SIEMENS 6'' ELECTROMAGNETIC GOOD Operative, installed in
Well N5 ZENNER 6'' TURBINE REGULAR Maymore
For 14th,trust,
2013it needs
to change for the in
Operative, installed
Well N6 SIEMENS 6'' ELECTROMAGNETIC 35205H 432 GOOD
December 13th, 2013
Well N7 ZENNER 6'' TURBINE REGULAR For more trust, it needs
to change for the
TABLE 91.

Huarmey
Well N1 FLOWRAM 8'' ELECTROMAGNETIC GOOD Installed in April 26th,
2013. Equipment

TABLE 92.

Repumping (from the reservoirs to other reservoirs of highest levels)

Chimbote
RESERVOIR FLOWRAM 8'' ELECTROMAGNETIC EMFM/HFD3000 GOOD Operative, installed
R-IIA to R-
RESERVOIR SIEMENS 8'' ELECTROMAGNETIC 8480405H292 GOOD inInstalled
May 2013in
RI-IIB to R-
RESERVOIR FLOWRAM 4'' ELECTROMAGNETIC 161044 GOOD December 23th,
Operative, installed
R-IV to R-V
RESERVOIR SIEMENS 14'' ELECTROMAGNETIC 07905H224 GOOD in December
Used only 13th,
in
R-III to R-
Contact 0500907/e 700- repumping by
Installed by the
McCrometer 8'' TURBINE REGULAR
with
Contact EUROMAG 8'' ELECTROMAGNETIC 002
MC 608 REGULAR Special Project
Installed PE-
in 2011
with
Cisterna ZENNER 8'' TURBINE 0820695/wph BAD This pumping
Garatea - 2000 station will be
1.4 Diagnosis of vulnerability of the EPS system SEDACHIMBOTE

The drinking water system and the sewerage in Chimbote, New Chimbote, Casma and Huarmey
they face vulnerabilities either natural influence or human influence. The system is vulnerable
because of earthquakes, floods, power outages, inadequate system and infrastructure.

A. Possible reduction of water source capacity

The groundwater sources that supply Chimbote, New Chimbote, Casma and Huarmey do not
present any reduction of capacity, which we do not consider vulnerable to these events.

B. Possible pollution sources

The water coming from the Santa River supplies the southern cone (New Chimbote) is exposed
to organic and inorganic remains of the population settled along the course of the river. For
example, there is a discharge of wastewater, solid waste, animal waste and fertilizers used for
cultivation. These results to an increase in nutrients or toxic substances in the water. Both not
only threaten the water quality but also aggravate the eutrophication process by activating or
accelerating it. Likewise, there is a risk of waste pollution that can be thrown by the mining
companies located in the upper part of the river.

The groundwater sources may also be affected by polluting fertilizers and pesticides in
agriculture. Similar contamination in the surface body water can infiltrate the subsoil and
pollute the sources. It is important to monitor the quality of water at distances before the
pumping stations.

C. Structure and installations of earthquake zone

Chimbote, New Chimbote, Casma and Huarmey are located in an earthquake zone, which most
of their facilities are vulnerable to be damaged in a major earthquake. This could also affect the
water and sewer service.

The location of the infrastructures is a major factor of the vulnerability of the system such as
Chimbote sewage pumping station on the seashore.

The raw water pipeline (Irchim Canal and Carlos Leigh Canal) from the Santa River constitutes a
vital line that would affect the feeding to the Potable Water Treatment Plant that supplies New
Chimbote.

The earthquakes that occurred in previous years such as the earthquake in May 31 st, 1970 had a
magnitude of 7.7 on the Richter scale at a distance of 25km from Chimbote.
The seismic risk of the hydraulic structures of distribution and the urban drainage is high and it
could increase by the greater vulnerability generated by the urban growth. This occurs more
often locations in hills, steep slope or unstable slopes areas.

Based on the magnitude, the earthquakes can lead to a total or partial destruction of the
catchment, conduction, treatment, storage, distribution and drainage structures. They may
cause breakage of piping, distribution and drainage and damage to joints, between pipes or
tanks, with consequent loss of water or infiltration of undesirable substances.

The electrical power can be interrupted, which would result in the shutdown of the equipment
that works with electricity. It can also generate shortages of drinking water to the population
and flood of sewage because of the lack of adequate evacuation.

D. Location of facilities in flood areas due to tsunami phenomenon

The installations of the water and drainage systems of the EPS SEDACHIMBOTE S.A are also
vulnerable in some hydraulic conditions. The main risk is generated when the phenomenon “El
niño” warms the sea water and increase the Lacramarca river flow. The rainwater from the
upper basin produce torrential rains and overflows on the Panamericana North highway, which
floods population areas in New Chimbote.

In Chimbote there’s 6 drains that cross the city, and evacuate the surpluses of irrigated waters to
the sea and some occasions they have overflowed. This is because of the bad management of
the floodgates.

The Irchim and Carlos leigh channels are vulnerable to the extreme floods of the Santa River,
which brings water throughout the year. According to the data Maxima-Maximorum, the daily
discharge consists of 1,500 m3/s, which can produce breaks that generate shortage of raw water
to the portable water treatment plant.

In Chimbote there are facilities located on the seashore such as the 5 Sewage Pumping Stations.
If a Tsunami occurs, it could collapse their structures and seriously affect the service. It could
also interrupt the drainage and cause the upwelling and flood of these waters of the streets.

In Casma and Huarmey, these events are almost not present since the rivers Casma and
Huarmey only bring water for 4 months per year.

E. The location of facilities exposed to landslide risks

Since Chimbote, New Chimbote, Casma and Huarmey are located in the Coast Zone, do not
have issues of landslide that affect the installations.

F. The possibility of power cuts

The vulnerability of the electrical system arises from the existence of danger and between these
there is an overload system that can cause fire. Another vulnerability risk is due to sabotage or
vandalism, lack of maintenance in the system, etc.

The electric energy trading company can suspend the electric fluid because of unforeseen and
other scheduled causes. In the last case scenario, the absence of supply is communicated with
anticipation and allows to take precautionary measurements of the case.

The EPS SEDACHIMBOTE is vulnerable to prolonged power outages because it does not have
100% electricity-operated generators.

Only in Chimbote and New Chimbote have 2 generators: one in the Treatment Plant of drinking
water and the other one in the Chamber of sewage “Villa Maria”

In Casma and Huarmey have no generating sets, so they are also vulnerable to electric power
cuts.

G. Negligence or vandalism

Drinking water and sewerage systems can also be vulnerable to negligence or vandalism such as
theft of meters and mailbox tops.

The pipelines from the well reach through the farmland and are targets of vandalism and can be
out-of-order.

Negligence might be found in the treatment and storage of water because there is no inspection
of the treatment plant. This can also aggravate the water quality and affect users.

The distribution sewerage networks are vulnerable to inefficient maintenance. Pipelines need to
be inspected constantly and the malfunctions must be fixed immediately. Other negligence
problems include excavation of minor surface culverts, unregulated discharge, incorrect
filtering, etc.

Some consequences that might emerge are diseases because of leaks of waste water. Need to
repair in the collectors.

H. Preventive measures, mitigation, preparation and response to disasters and

emergencies.
Through the application of prevention and mitigation measures. The infrastructure of the EPS
SEDACHIMBOTE S.A is prepared for disaster situations in order to reduce the system
vulnerability.

Some recommendations are to construct preventive works, to prevent throwing trash, to clean
rivers and water periodically and to create local emergency committee.

The correct prevention and mitigation measures require a greater commitment of the company.
It provides greater support in the area of planning to deal with emergency situations. Reducing
the effects of a threat requires allocation of resources.

The mitigation measurements will allow better preventive planning actions to reduce the
threats on the system. With that said, we can make more agreements with other institutions,
preparation of training courses, allocation of resources and reinforcement of the components of
the system.

Currently the EPS SEDACHIMBOTE S.A has an Emergency Committee chaired by the General
Management. The Emergency Committee action is framed with an emergency action plan to
mitigate the emergency or disaster that may arise. SEDACHIMBOTE has Emergency Plans to
guide whenever there’s an emergency or disaster that can occur in drinking water system and
the sewage system.

I. Existing action plans to confront emergency situations

The EPS SEDACHIMBOTE counts with Emergency Plans for earthquakes, floods and tsunamis for
Chimbote and New Chimbote. A basic inspection and evaluation is done to see if the preventive
actions are functioning.

Likewise, the current institutional organization of our company has considered to administrate
the vulnerability and responsiveness with the following objectives:
 Analyze the impact of SEDACHIMBOTE drinking water and sewerage systems. It includes
Chimbote and New Chimbote.
 Determine the measurements and works that must be implemented to respond to the
threat impact in order to reduce vulnerability of the system.
 Determine the procedures, instructions and information necessary for the company to
prepare and mobilize during and after the threat.
 Reduce or minimize the interruption period of drinking water and sewerage services.

At the end, the following documents are available: Vulnerability Analysis and Mitigation Plan.
The plans are taken in consideration by the methodological guidelines and planning standards
to attend these emergency situations. The efficiency of this plan has discounted an appropriate
participation of the staff of SEDACHIMBOTE at all levels.

IMMEDIATE ACTIONS:
  Once an emergency is declared, the Emergency Operation Committee of the EPS will be
installed immediately and will be declared in permanent session until it exceeds such
status.
 If a disaster occurs in a non-working-schedule, the COE members and their partners will
be formed in the shortest time possible to their Emergency Operation Center.
 According to the Company’s policy and the procedures established in the Emergency
Plan, the first COE provision is to avoid major damages. It will immediately suspend the
drinking water supply in the jurisdiction.
 The COE will immediately arrange technical staff of the EPS to evaluate the infrastructure
damages.
 The construction of the pumps will be arranged.
 Depending on the COE capacity of primary and secondary networks, it could implement
a rationing and/or restricted distribution program.
 The COE will prioritize the gradual rehabilitation of drinking water and sewerage
networks for victims, hospital, health centers, police, fire and others.

2.1 Estimated population:

 The company provides drinking and sewerage service in Chimbote, New Chimbote,
Casma, Huarmey located in Ancash.
 The estimated population and projection is based on the estimated results of the
national census: XI Population Census and VI housing. (FINISHED UNTL PAGE 102 XI
Censo de Población)