Peru lines up US$7bn in infrastructure projects through 2016

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Tuesday, January 13, 2015

Peru's government plans to award 22 infrastructure projects totaling 20.8bn soles (US$7bn) over the next 18 months, a senior official said.

Fifteen of the co-financed projects dubbed IPC by the state agency in charge of promoting private investment, ProInversión, involve the health and education sectors, including 54 schools and eight hospital projects, finance minister Alonso Segura said Tuesday, according to state news agency Andina

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Construction work should get underway on all 22 projects before President Ollanta Humala steps down in July 2016, Segura said. Proinversión will announce the projects in detail on January 19, he said.

"This is a system that hasn't existed for long, where investors propose to the public sector to build a highway as part of the public-private partnership (APP) model," Segura told Radioprogramas. "It's called co-financed because it involves both state and private spending."

The agency has awarded 54bn soles in infrastructure concessions since mid-2011, including the US$5.99bn Line No.2 of Lima's metro system, the US$4.3bn Gasoducto Sur Peruano (GSP) natural gas pipeline, the US$634mn Chinchero airport in Cusco, the US$152mn upgrade of the port of Pisco, the US$20.8mn Kuélap cable car, thermal power plants and the US$589mn Moyobamba-Iquitos, US$45.8mn Fríaspata-Mollepata and US$35.4mn La Planicie power lines.

ROAD REPAIRED

Humala on Tuesday opened 50.1km of highway in Huancabamba and Ayavaca, Piura, repaired at a cost of 18mn soles, according to state news agency Andina. The road will improve transit between Huancabamba, Olmos and Chiclayo.