PROJECTS / Financial Analysis and Tariff Increase Review to Enable Strategic Investment Planning under Sedapal’s Optimized Master Plan (2027–2031)

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, 2026

The 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.

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