olmos irrigation project

Proyecto
Proyecto de
deIrrigación
IrrigaciónOlmos
Olmos
Proyecto de Irrigación Olmos
Detalles
de la
Gran Subasta
Detalles
Detallesde
delalaGran
GranSubasta
Subasta
Chiclayo,
9 de Diciembre
del 2010
Chiclayo,
Chiclayo,99de
deDiciembre
Diciembredel
del2010
2010
OLMOS IRRIGATION
PROJECT
Alfonso
Pinillos
Alfonso
AlfonsoPinillos
Pinillos
PROYECTO DE IRRIGACIÓN OLMOS
Opportunity to Acquire Farmlands
with Irrigation Rights in Peru
PROYECTO DE IRRIGACIÓN OLMOS
1. The Olmos Project
2. Land Opportunity
3. Odebrecht
THE OLMOS PROJECT
The Olmos Project consists in the diversion of
Atlantic-based Huancabamba river waters into
the Pacific basin through a 20-km tunnel
across the Andean mountain range for its use
in the irrigation of arable land and power
generation.
Project Objectives:
 Economic development and improvement of
the living standards in Lambayeque region and
northern Peru.
Project Stages:
Diversion: In June 2004 the Regional
Government of Lambayeque (GRL) signed the
agreement with Concesionaria Trasvase
Olmos (CTO), for the construction and
operation of the Limon dam and the
Transandean tunnel.
Energy: In October 2010, Sinersa S.A. Was
awarded with the development of the
hydroelectric power generation project.
Irrigation: In June 2010 H2Olmos S.A. signed
the Concession Agreement with GRL for the
construction and operation of the Irrigation
Project.
Irrigation and Hydroelectric Power Generation
IRRIGATION
ENERGY
DIVERSION
REGIONAL MAP:
STRATEGIC LOCATION
PAITA
PORT
Distance to Olmos Land:
ANDEAN
MOUNTAINS
115 km from Chiclayo
200 km from Paita Port
35 km from Panamericana highway
55 km to Pacific Ocean
670 km to Equatorial Line
Highway
Airport
Port
TRASANDEAN
TUNNEL
ACCESS ROAD
30km
PERU
LAND
SOUTH
AMERICA
WATER DIVERSION
COMPONENT
Includes the uptake and regulation of
Huancabamba river waters for subsequent
diversion towards the Pacific basin.
Main Works Completed:
The Limon Dam:
 43 m high
 Total dam volume 44 Hm3
Trasandean Tunnel:

20 Km long

4.8 m diameter.

Excavation works were completed in
December 2011.:
>
Tunnel Boring Machine (TBM). (The
Robbins Company).
>
Drill & Blast (D&B)
5
DAM & TUNNEL
LIMON DAM
TOTAL CAPACITY 44 Hm3
TRANSANDEN TUNNEL
DIVERSION CAPACITY 2,050 Hm3 PER YEAR
VIDEO
OLMOS IRRIGATION
PROJECT
Irrigation Component
H2Olmos S.A., an Odebrecht company,
is the concessionaire in charge of
construction, operation and maintenance
of the Project.
Self-sustainable concession without
financial resources of the Peruvian
Government.
Total Investment of US$ 280 MM, 100%
privately funded.
Irrigation of 43,500 hectares:
 5,500 ha of Olmos Valle Viejo and the
Rural Community (small farmers).
 38,000 ha of new land, previously
owned by GRL, that were auctioned to
private investors.
CLIMATE AND SOIL
CONDITIONS
 CLIMATE:
Ideal
climate
conditions with average minimum
temperature of 15.2 ºC and
maximum 33.9 ºC. There is no
frost and rain is scarce (100 -150
ml. year).
40.0
35.0
30.0
25.0
MAX
20.0
MIN
15.0
10.0
5.0
0.0
ENE FEB MARABR MAY JUN JUL AGO SEP OCTNOV DIC
 SOIL: Pampas and arid plains.
Certain areas are covered by light
tree and bush vegetation. The
predominant soil texture is sandy
to sandy loam and loamy sand at
greater depth, with an elevation of
50 to 120 m.a.s.l..
CROPS AND WATER
CONDITIONS
 CROPS:
 Fruit: table grapes, avocado, berries,
mango, citrus, pomegranate, passion
fruit, banana, others.
 Vegetables: asparagus, paprika, peppers
and others.
 Industry: sugarcane, cotton and corn.
Surface Water Supply: 10,400 m3 / net ha / year of pressurized
water diverted from the Huancabamba river.
 Water Reserve guaranteed by Peruvian State.
 Water License Certificates.
 Good quality.
Underground Water Supply: Six exploratory and one production
well were constructed: Good water at a depth of 100 m. with a
static level of 30 m, and a 42 lts/sec flow.
Huancabamba River
INFORMATION AVAILABLE
Studies and Reports
 Surface and Underground Water
Surveys (Exploratory and production
wells)
 Edaphological (soil) Studies for
agricultural purposes
 Topography
 Archeological Assessment, including
CIRA certificates
 Environmental Impact Study - EIS
 Agro-economic Studies
 Climate Report
 Tax treatment of agricultural and other
investments
APRIL 2014: 90%
WORKS ADVANCEMENT
Main Works:
Miraflores Uptake: Located on Olmos River
near Miraflores Hill. Water uptake and
conduction will start from this structure over the
left bank of Olmos River.
Sand Trap: Purge structure located 3 km
from Miraflores Uptake, will remove sand
particles.
Main Conduction Channel: 15km, concretelined trapezoidal channel, with a side service
road.
Tunnel: 2km-long and 5m-wide tunnel will
connect the Main Channel and Palo Verde Dam.
Palo Verde Dam: 800,000m3 useful volume. Its main functions include:
•Uploading Chamber for pressurized distribution pipelines.
•Time Compensation Reservoir, to cover for potential variations in the conduction flow.
•Settler, to settle particles which cannot be held by the Sand Trap, thus improving the quality of water to be supplied to the
Users.
•Control Structure for the main conduction channel, enabling operation with flows circulating at speeds that allow sediment
dragging and also dampening and/or removing emergency flows which may occur in the system.
Distribution System: GRP pipes of various diameters, with a discharge valve to each plot.
System Automation: It will enable efficient water operation and distribution in accordance with User and Farmer requirements.
VIDEO
IRRIGATION WORKS COMPLETION
EXPECTED NOVEMBER 2014
Miraflores Uptake
Distribution System
2-km tunnel
Distribution power lines
Roads
CONCESSION STRUCTURE
The Olmos Irrigation Project is a Self Sustainable Concession
Land
Auction
Transfer of lands in
Fiduciary domain
GRL
- Grantor -
$ Lands
Transfer of Property
Fideicomiso
Land Trust
Tierras
$ Lands
(Fideicomitente:
(Trustor: GRL)
GRL)
Users
Usuarios
(Agribusiness
investors)
$ Irrigation Capacity
Rights
Capacity proceeds
With financing
and shareholders
contribution
Concessionaire
Concesionario
Service of water collection,
transport and distribution
(H2Olmos)
Fee for Service of water collection,
transport and distribution
INVESTOR’S 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.
 The algorithm for water distribution of Huancabamba river.
 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 has been contracted with Odebrecht Peru through an EPC turn-key lump-sum
contract. Odebrecht is a world-class international contractor with more than 70 years of experience and
35 years operating in Peru in the execution of large infrastructure projects.
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 buyers of the land 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 land investors in case of termination of the Concession
Agreement. Covered in the agreement and supported by the Security and Guarantee Contract.
1. The Olmos Project
2. Land Opportunity
3. Odebrecht
LAND CHARACTERISTICS
Opportunity:
For national and foreign investors
Total Land:
38,000 Hectares (Ha), in lots of 250, 500 and 1000 Ha
Lots Available:
1 lots of 250 Ha (B6c)
3 lots of 1000 Ha (B1, C2, C5)
Price:
250 Ha lots: US$ 8,500 / Ha
1000 Ha lots: US$ 7,500 / Ha
Average Water Supply :
10,400m3 / net Ha /year
Property Deed:
Title of land with no time limit
Service Fee:
Flat service fee of US$0.07/m3 of pressurized water, equivalent to a Total Fix
fee of US$ 632 per hectare year, to be paid by the owners of the land under a
take or pay contract.
Other Benefits:
Each lot will be provided with access roads and a power outlet connected to
the national electricity grid.
LOT MAP OF THE IRRIGATION PROJECT
AUCTION RESULTS
AVAILABLE
OLMOS PROJECT
INVESTMENT OPPORTUNITY
Diversification and Windows for Market Access
 Counter-seasonal harvesting, which allows diversification of the offer in the Northern Hemisphere.
 Favorable weather conditions allow for timely access to markets.
 Geographical window to export to the West coast markets in the United States and Asia.
Quality of Lands and Attractive Admission Conditions
 Attractive agricultural lands for diversity of
crops.
 Continuous and ample plots of non-developed
lands, not available in other areas.
 Experiences of neighboring farmers in irrigated
lands Show above average yields.
 Competitive cost of acquisition per hectare
 Water provision.
Project Quality
 Odebrecht's Background and Experience.
 Detailed technical information available.
 Transparent auction process.
 Property deed with no time restrictions.
1. The Olmos Project
2. Land Opportunity
3. Odebrecht
ODEBRECHT IN PERU
Track record and expertise of Odebrecht, with 70 years as a leading engineering and construction firm in Latin
America and active investor in infrastructure projects in the country and the region.
Odebrecht has been involved in the main works including roads, water treatment and drain plants, sewage systems,
hydro electric stations, irrigation works, tunnels, dams, marine ports, metro trains, etc.
Has developed 15 major irrigation projects in several countries providing water resources to more than 250,000 Ha.
 Started in Peru in 1979.
 Led the construction of the Chavimochic Irrigation
Project in the 90s, benefiting more than 50,000 Ha.
 Works in Peru:
 100 km tunnels.
 3 water uptakes.
 242 km irrigation channels.
 5 sewage treatment plants.
 3 fresh water treatment plants
 142 km fresh water and sewage networks.
 2 dams for water storage.
 2000 km paved routes.
 4 hydro electric power stations (342.5 MW).
 3 mining development projects.
ODEBRECHT ORGANIZATION:
70 YEARS OF HISTORY
 Leader in Engineering and Construction in Latin America,
with presence in North America, Europe and Africa.
 Leader in Thermoplastic Resins in Latin America and the
18th Largest Producer in the World.
FINANCIAL INDICATORS
(2012)
 Investment in Bioenergy in Brazil.
 Gross Income
US$ 43.1 bn
 Investment in energy and Infrastructure in Latin America
and Europe.
 EBITDA
 Engineering
US$ 4.2 bn
Integrated Services in the Oil and Gas
Segment.
 Largest Private Operator in Brazil in Waste and Water
Treatment.
 Real Estate Development and Construction.
 Total Assets
US$ 59.5 bn
Posición MEF vs. H2OLMOS
THANK YOU !
For additional information visit:
www.h2olmos.com