Peru to offer more investment sweetners - minister

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Tuesday, January 6, 2015

The Peruvian government, which has passed four economic stimulus packages, plans to announce another set of investment incentives in its drive to spur the economy, a senior official said.

"We'll shortly be making announcements about private initiatives and the new round of initiatives that will be presented this month and in February," finance minister Alonso Segura told state gazette El Peruano.

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ProInversión, the state agency in charge of promoting private investment, has already lined up 80bn soles (US$26.7bn) in infrastructure investment projects, not including line No.3 of Lima metro, Segura added.

The agency has awarded 54bn soles in infrastructure concessions since mid-2011.

"The government is providing incentives for investment and to close gaps," Segura said. "We're also entering into private-public partnerships (PPPs) for schools, hospitals and water projects."

Peru's economy is on track to expand 5% in 2015 on the back of the global economic recovery and a series of government economic measures aimed at speeding up permitting and cutting taxes, he said. Tax breaks, which will benefit 1.2mn people, are designed to inject 4bn soles into the economy, adding 2 percentage points to growth in 2015, Segura said.

GDP growth slowed to an estimated 2.7% in 2014, compared with 5.1% in 2013, according to the ministry.

"The outlook is better for 2015," Segura said. "Some of the impacts from last year were temporary and will fade."

Concessions awarded in 2014 included the US$6bn line no.2 of Lima's metro system, the US$4.3bn Gasoducto Sur Peruano (GSP) natural gas pipeline, the US$634mn Chinchero airport, the US$152mn upgrade of the port of Pisco, the US$21mn Kuélap cable car system, thermal power plants and the US$589mn Moyobamba-Iquitos, US$46mn Fríaspata-Mollepata and US$35.4mn La Planicie power lines.