Peru's US$12bn love affair with PPPs

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Wednesday, December 31, 2014

Peru's government said it awarded US$11.8bn in public-private partnership (PPP) infrastructure investment projects in 2014, more than double the previous year's total.

The government, which awarded US$5.02bn in PPPs in 2013, has established a total US$18.0bn in joint investment projects since 2011, the agency in charge of promoting private investment, ProInversión, said in a release this week.

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"The PPPs awarded by ProInversión this year will help modernize infrastructure and make the country more competitive," agency director Carlos Herrera (pictured) said in the statement. "In addition to the major amounts of investment involved, the PPP projects that were awarded generate development opportunities for suppliers and create direct and indirect employment."

PPPs awarded in 2014 include the US$5.99bn line No.2 of Lima's metro system, the US$4.3bn, 1,000km Gasoducto Sur Peruano (GSP) natural gas pipeline, the US$634mn Chinchero airport in Cusco, the US$152mn upgrade of the port of Pisco and the US$20.8mn Kuélap cable car system, ProInversión said.

Other concessions include thermal power plants and the US$589mn Moyobamba-Iquitos, US$45.8mn Fríaspata-Mollepata and US$35.4mn La Planicie power lines. ProInversión also awarded a concession to block mobile phone and Wi-Fi signals in prisons and for the management of the children's hospital in San Borja and four areas of land within the Chavimochic irrigation project.

Peru, in 2015, plans to award infrastructure concessions including rail and road projects, the Callao logistics hub (ZAL), hydro and thermal power plants and liquefied petroleum gas distribution in the capital.

BNamericas will host the 2nd LatAm & Caribbean Ports & Logistics Summit on January 28-29 in Panama. More information.