OLMOS IRRIGATION PROJECT

Updated at 10.14.2011

Characteristics of the area

Climate

Weather conditions in Olmos New Lands are dry and subtropical. Weather observations with longer series have been taken at the Lambayeque Station (installed in 1929), located 20 km south of the lands involved. Six weather stations were set up in 1964 in the same area and, in the mountain basins of the rivers flowing across the region under study, ten rainfall metering posts were created in 1963-1964.

Rainfall

Rainfall is quite scarce in the area, at less than 100 mm per year.

Temperatures

The mean annual temperature varies between 23.8°C in the north and 22.1°C in the south of the Project area. The average temperature varies between 19°C in August and 27°C in February.

Relative Humidity

The point closest to the Pacific Ocean is 55 km to the southwest of the land polygon, which causes the humidity level to be lower than other croplands in the Peruvian coast.
Relative humidity fluctuation is quite narrow (between 66% and 71%) during the year; however, variations during the day are significant: the maximum relative humidity occurs at 7 a.m. (70% - 80%) and the minimum at 1 p.m. (40% - 60%).

Evaporation

Winds blow homogeneously over the whole irrigation area, with predominance of those coming from the northwest, west and southwest. Maximum wind speeds reach 20 m/s to 15 m/s. Evaporation from water surface, according to data from observations in an atmometer at ground level, attains values between 2,500-3,100 mm/year.

Soil

Suelo

The New Lands present hills, pampas and arid plains.  Certain areas are covered by light tree and bush vegetation. In rain time, the ground is also covered by grass.

The predominant soil texture is light, sandy with a trend to sandy loam and loamy sand at greater depth.  Sample analysis reveals soils with neutral reaction, the average pH of which is 7,40, which favors high macro- and micro-element absorption.

Laboratory results return low soluble salt levels and an electrical conductivity fluctuating between 0.20 to 2.05 mmhos/cm, which would make the land suitable for a large variety of crops.

Parties interested in acquiring the auction terms and conditions will be delivered supplementary information in due course.

Water

Presa Limón - Trasvase Olmos

Surface waters available to the Project will come from the diversion of the Huancabamba river, in the basin of which rainfall varies between 1,500 mm in the higher areas, to 500 mm in the lower areas.  Own-basin surface resources coming from the Olmos river are scarce and rare, with an average flow rate of 0.81 m3/s and, therefore, they are not considered a significant contribution to this Project.

The current water reserve for the Olmos Irrigation Project amounts to 406 million cubic meters per year (Mm3) originating from the Huancabamba river.  This water availability for the development of the 38,000 hectares of New Land is comprised and guaranteed through the water reserve to be maintained in effect during the life of the concession, according to Article 6 of the Regulation of the Water Reserve and Hydrographic Basins Act N° 28029, the term of which was extended under resolution RJ 331-2010-ANA of June 3, 2010.

Surface water supplied per plot:

An average of 9,032m3 gross Ha/year be supplied through the irrigation infrastructure to be constructed.

Underground water:

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