Financial Analysis and Tariff Increase Review to Enable Strategic Investment Planning under Sedapal’s Optimized Master Plan (2027–2031)
Latin America and the Caribbean
June 11, 2026The International Finance Corporation (IFC) contracted K&M to support Sedapal, the water and sanitation utility responsible for providing service in Lima, in preparing a single, coherent, and financially viable investment plan for the 2027–2031 regulatory period. This plan will form part of Sedapal’s PMO and serve as the basis for its tariff-setting application to SUNASS. In this assignment, K&M: (i) consolidated and validated all relevant information required for the tariff application, including regulatory parameters, financial statements, operational indicators, and project portfolios; (ii) updated and refined Sedapal’s financial planning model to evaluate investment affordability, cash availability, and financing requirements; (iii) assessed investment scenarios, incorporating SUNASS tariff rules, Sedapal’s proposed project pipeline, and feasible financing strategies; (iv) is preparing a prioritized and executable investment plan that SEDAPAL can both finance and implement within the regulatory period; (v) is preparing tariff sensitivity analyses to ensure the investment plan aligns with potential tariff paths generated through SEDAPAL’s own tariff model; and (vi) supported Sedapal in preparing the PMO input for submission to SUNASS, ensuring regulatory alignment and internal institutional ownership.


