Av. Enrique Canaval Moreyra Nº 150, Piso 9, San Isidro, Lima Telf.: (511) 200-1200, Fax:(511) 442-2948 www.proinversion.gob.pe

Dirección de Promoción

de Inversiones

CO-FINANCED UNSOLICITED PROPOSAL

“CHANCAY VALLEY — LAMBAYEQUE, LAMBAYEQUE REGION COMPREHENSIVE WATER SYSTEM”

Information to be published on PROINVERSIÓN’s web portal, pursuant to subsection 27.3 of article 27 of the regulations of Legislative Decree 1012, approved by Supreme Decree 127-2014-EF and its amendments:

1. Private investment participation proposal. Concession Contract.

2. Name and type of project, indication of public infrastructure, public service and/or

services connected to those required to be provided by the government, or which comprise applied research and/or technological innovation and are the responsibility of the government, and upon which the project will be developed, as well as references on the owner of the assets upon which the project or the legal their situation rests.

Name of Project:

Chancay Valley – Lambayeque, Lambayeque Region Comprehensive Water System.

Type of Project

The project consists of the design, building, installation and operation of a Comprehensive water system in the Chancay Valley-Lambayeque, with the construction of primary infrastructure for two dams (La Monteria and Sican) and the execution of accessory water canals and piping . The project also includes the operation and maintenance of the existing infrastructure (the Tinajones System) currently under management of PEOT — the Olmos Tinajones Special Project.

The competent authorities are the Lambayeque Regional Government and The Ministry of Agriculture and Irrigation.

3. Project Scope of Influence

The scope of influence of the project includes the Chancay — Lambayeque hydrographic basin, department of Lambayeque.

4. Objectives, includes the characteristics of the service , and if applicable, the level of service to be rendered. The general objective of the Project is the expansion, operation and

maintenance of the hydraulic infrastructure of the Chancay Lambayeque water basin by implementing an innovative and comprehensive hydraulic model to increase water availability for agricultural, industrial and urban use .

Av. Enrique Canaval Moreyra Nº 150, Piso 9, San Isidro, Lima Telf.: (511) 200-1200, Fax:(511) 442-2948 www.proinversion.gob.pe

Dirección de Promoción

de Inversiones

Specific Objectives:

Improve distribution and use of water in the farmland currently used for crop production in the Tinajones System (87,800 Ha with irrigation to be improved and 37,700 Ha for the issuance of new permits and second cropping season).

Expand the agricultural frontier, adding 33,200 Ha of new idle lands by implementing the Montería and Sicán dams.

Establish a water harvesting method through the recovery and improvement of the horizontal drainage system.

Improve efficiency in the harvesting, distribution, supply, us e measurement, billing of water in farmland that is currently under production and in the newly incorporated lands.

Expand water availability for urban use, as well as the integration of the distribution system for the cities of Chiclayo, Lambayeque, Ferreñafe and others.

Improve farming and irrigation technologies for the agro-exportation and agroindustry.

Establish a comprehensive hydraulic system to prevent damages that could be caused by weather events like El Niño and droughts

5. Project Benefits

Increase of farmland: new farmland areas (33.2 thousand Ha.) plus

improvement of irrigated areas (87.8 thousand Ha). New crop mixes. Areas without permits and second cropping 37.7 thousand Ha. Water supply for urban use. Permanent direct Jobs: 114 thousand. Private investments in agricultural development for over US$ 900 MM. Expected increase of agro-exportation production US$400 MM. 172 thousand direct permanent jobs. Mitigation of flood damages caused by El Niño phenomenon and droughts.

Important notice: This is an unofficial translation. In case of divergence between the English and Spanish text, the version in Spanish shall prevail