The World Bank has approved a $200 million, 10-year program to help Peru improve wastewater management and promote circular economy strategies in the water sector. The initiative aims to upgrade water and sanitation systems in Lima and Puno, expand access to clean water, and support the country's efforts to reuse and conserve water.
The program will fund projects such as advanced wastewater treatment for energy cogeneration and nutrient recovery, aquifer recharge, and measures to reduce water pollution and losses. In Puno, a key focus is protecting Lake Titicaca by building new wastewater treatment plants and expanding water supply networks. These actions are intended to address risks from climate change, including floods, droughts, landslides, and glacier loss.
Both Lima and Lake Titicaca face ongoing threats from untreated wastewater and water shortages that impact agriculture, fisheries, and local communities.
Durich Whittembury, Peru's Minister of Housing, Construction and Sanitation said: "Our commitment is to close the water and sanitation gap, while strengthening the country's water security. This program, in partnership with the World Bank, will allow us to promote the implementation of the circular economy roadmap for the sector, thus strengthening the sustainability of investments, for the benefit of the health and development of Peruvian families."
Water-intensive industries like manufacturing, mining, construction, agriculture, electricity generation are important contributors to Peru’s economy. Mining accounts for most exports at 63 percent; agriculture makes up 16 percent of exports and employs nearly a quarter of Peru’s workforce—a vital factor in rural areas where poverty remains high.
Issam Abousleiman, World Bank Regional Director for Bolivia, Chile, Ecuador and Peru stated: “In partnership with Peru, we are strengthening water security while catalyzing a circular economy that turns wastewater into a resource—supporting cleaner rivers and lakes, more reliable services, and new jobs. This program will help utilities plan and both public and private investment, scaling up water reuse and energy recovery, and improving service delivery where the needs are greatest.”