Peru to invest $3.1 billion in Lima water projects

LIMA, Feb 18 (Reuters) - Peru plans to invest $3.1 billion (8 billion soles) through 2016 to bring water to all residents in metropolitan Lima, officials said on Monday.

About $1 billion for the projects would be made available as concessions to private investors, Housing Minister Rene Cornejo said, while the rest would come from the government - financed in part by external debt and higher water fees.

The investments will fund 148 projects to broaden access to drinking water and sewage services across Lima and outlying neighborhoods, benefiting nearly 2 million of the capital's 9 million inhabitants.

"For every sol invested in sanitation, 7 soles are saved in health costs," said Cornejo. "This is part of our strategy."

(Reporting By Omar Mariluz and Terry Wade; Editing by Philip Barbara)