The Ministry of Housing, Construction and Sanitation announced on Mar. 24 that more than 110,000 residents in Ilo and Utcubamba now have increased access to potable water following the recovery and strengthening of local water companies. The ministry reported that EPS Ilo and EPSSMU have exited the Transitional Support Regime (RAT), marking a significant milestone in Peru’s sanitation policy.
This development is important because it reflects improvements in public utility management and service delivery for communities previously facing unreliable or limited water supply. The ministry said these changes are the result of coordinated technical and financial support, capacity building, and ongoing monitoring to ensure sustainable improvements.
During a symbolic ceremony, transfer documents were handed over to the provincial mayors of Ilo and Utcubamba, officially returning administration of both companies to their respective municipalities. “This is the reflection of good actions and the harvest of what has been sown. It is not only work by OTASS but also by the municipalities. Today we see impressive results: companies that went from negative equity to positive, improving service and reaching more people. That shows when the State is present and works together, real changes can be achieved. This is the path we must follow as a country,” said Minister Wilder Sifuentes Quilcate.
For EPS Ilo, intervention by OTASS helped reverse its financial situation from negative equity of S/56 million to positive equity exceeding S/96 million after an investment over S/44 million. Service continuity improved from 15 hours per day to nearly 20 hours daily for more than 80,000 residents through operational upgrades such as new connections and rehabilitated pipelines.
In Utcubamba’s EPSSMU company, an investment totaling S/14.9 million—of which over S/11 million was allocated specifically for optimizing potable water systems—raised average daily service from one hour to seven hours for over 33,000 people while increasing company assets significantly.
The exit from RAT demonstrates that state intervention can restore troubled utilities so they return under municipal management with enhanced capacity for continued improvement.
