Peru govt survives vote of confidence and unveils major infrastructure plans

Peru’s government unveiled plans for the reactivation of infrastructure projects and pending tenders, with a strong focus on investments to recover from the economic blow of the latest and deadly protests. 

The project announcements were made in congress late Tuesday during a debate on a vote of confidence in the cabinet of President Dina Boluarte.

Former VP Boluarte became the country’s leader in December after congress removed former president Pedro Castillo, who had sought to dissolve the legislature. The ousting of Castillo has led to protesters blocking roads and occupying airports, with many killed in clashes with the police. Boluarte has refused to meet the protesters’ demands, which includes her resignation, calling for early elections and closing down congress.

Despite major questioning regarding the Boluarte administration's handling of the protests, congress gave its approval of the cabinet led by prime minister Alberto Otárola.

As part of the confidence vote proceedings, the ministers presented their plans and goals for resolving the current crisis - and the infrastructure sector is seen as key among these efforts.

BNamericas takes a look at the most important plans.

THE PLANS

The economy and finance ministry (MEF) recognized that many projects are paralyzed due to excessive red tape, corruption and public sector inefficiency. An “unblocking shock,” which includes rapid execution of regional projects, will be accompanied by a guide on how to reactivate the paralyzed public works.

MEF’s pledge for 2023 is to unblock 474 projects worth a combined 731mn soles (US$193mn) that can generate an economic impact in the short term. 

To support this goal, the government will submit a bill to restructure the debts of municipalities that have limited capacity to finance public services.

REGIONAL PROJECTS

The transport and communications ministry (MTC) said that the Chinchero international airport (AICC) project in Cusco region will see its main construction works kick off this year. With capex of US$427mn, it has obtained approval for the designs of the landing strip, taxiway, aircraft apron, passenger terminal and control tower.

In March, the government will disclose which company will be in charge of building the 7.5km road that will link Cusco city with the new airport. The contract is worth an estimated 450mn soles.

Regarding Puno region, which is one of the most affected by the recent protests, MTC unveiled an investment of 140mn soles to improve 193km of roads. The ministry is also preparing the tender call for the Vía Evitamiento Juliaca road project and the Checca-Mazocruz highway, whose estimated investments amount to 785mn and 205mn, respectively.

Last year an official from highways authority Provías Nacional told BNamericas that Vía Evitamiento Juliaca would be put out to tender in March or April this year.

Tender call preparations are also underway for the stretch 4 of the Longitudinal Sur highway. Contract awarding of the US$930mn PPP project was initially scheduled for 3Q23 but it is now set for 1Q24. 

In the airport sector, Otárola said rehabilitation works will be carried out at various regional airports with a combined investment of 141mn soles. The works will include terminals, parking lots and perimeter fences.