Peru to Advance Wastewater Management and Circular Economy strategies with $200 Million World Bank Program

WASHINGTON, September 30, 2025 - The World Bank's Board of Executive Directors approved a new multi-phase 10-year program to support Peru in strengthening wastewater management, advancing a circular economy strategy in the water sector, and improving the reliability of water and sanitation services, fostering opportunities and jobs in the country.

The $200 million program will upgrade water and sanitation systems in Lima and Puno, focusing on improving infrastructure and expanding access to clean water. It will also support Peru's national circular economy roadmap that promotes water reuse, recovery and conservation. The program will include water reuse projects, aquifer recharge, reduce water pollution and losses as well as investments in energy cogeneration and nutrient recovery through advanced wastewater treatment. 

In Puno, the program focuses on protecting Lake Titicaca by developing new wastewater treatment plants and expanding water supply and sanitation networks, while also upgrading Peru's infrastructure to address water-related risks from climate change-including floods, droughts, landslides, and glacier loss. Both Lima and Lake Titicaca face significant threats from untreated wastewater, water shortages, and droughts, which endanger agriculture, fisheries, and local livelihoods.

"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," said Durich Whittembury, Minister of Housing, Construction and Sanitation of Peru.

Water-intensive sectors such as manufacturing, mining and hydrocarbons, construction, agriculture, and water and electricity, are central to Peru's economy and jobs, contributing nearly two fifths of GDP. Mining and agriculture account for 63 percent and 16 percent of total exports, respectively, while agriculture-highly dependent on irrigation-employs almost a quarter of the workforce, a critical factor for rural development where poverty rates remain high.

"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," said Issam Abousleiman, World Bank Regional Director for Bolivia, Chile, Ecuador and Peru. "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."