Investors Protection Mechanisms

Government Guarantee Contract

A Security and Guarantee Contract has been subscribed with the Peruvian State, through which the latter will guarantee all statements, securities and guarantees assumed by the Grantor (the GRL) under the Concession Agreement.

Likewise, the Peruvian State guarantees:

• The Water Reserve required for the development of the Olmos Irrigation Project, which has been extended through Administrative Resolution N°331-2010-ANA (June 3, 2010) ,and
• The algorithm for water distribution of Huancabamba river as per Administrative Resolution N°244-2011-ANA.
• Continuity of water distribution services upon and after termination of the Concession Agreement is ensured by Law .

Lump-sum Construction Agreement

The execution of works will be contracted with Odebrecht Peru through an EPC turn-key lump-sum contract. Odebrecht is a world-class international contractor with more than 30 years of experience in Peru in the execution of civil and electromechanical works.

Supervision

“Special Project Olmos-Tinajones” (PEOT), technical branch of the Lambayeque Regional Government,  will conduct supervision works including Control of Construction, Maintenance and Operation of the Works, pursuant to the Concession Agreement.

Land & Proceeds Trust

Established to manage the land and proceeds contributed by the customers as Capacity Payment. The Trust Fund is La Fiduciaria S.A., organization regulated by the SBS (Peruvian Bank and Insurance Regulatory  Entity).

Compensation

Compensation structure established for investors in case of termination of the Concession Agreement. Covered in the agreement and supported by the Security and Guarantee Contract.