Peru's pension funds to invest US$1bn in infrastructure projects

Bnamericas Published: Wednesday, January 28, 2015

Peru's four private pension fund managers aim to invest at least US$1bn in five infrastructure projects, state news agency Andina reported.

The funds – AFP Integra, Prima AFP, Profuturo AFP and AFP Habitat – are looking to invest this year in projects including Line No. 2 of the Lima metro, central Andean railway Ferrovías Central Andina and the southern Peru natural gas pipeline, AFP Integra investment manager Renzo Castellano said.

The pension funds, which invested US$500mn infrastructure in 2012, may increase the US$1bn depending on the availability of projects, Castellano said. They previously invested in the Taboada water treatment plant, the Vía Parque Rímac highway and the Huascacocha-Rímac tunnel.

"The fund seeks to finance major projects that the AFPs couldn't handle alone," Castellano told Andina. "At first we were thinking of investing 20% in each project, but that amount could be increased to finance major projects or lowered for smaller constructions."

Peru's pension funds managed a total fund of 114bn soles (US$38bn) as of January 16, according to banking and insurance regulator SBS. At least 11% of total funds have been invested in infrastructure to date, a figure that could rise to 16%, Castellano said.


In other infrastructure news, the government plans to invest 2.26bn soles through 2016 in transport and telecommunications infrastructure in the central Andean Junín region, transport and communications minister José Gallardo said.

The government has allocated 1.76bn soles to repairs and upgrades of 2,029km of roads and 280mn soles for the national fiber-optic network, Gallardo said. Another 201mnn soles will be invested in 75 bridges, the minister told state television channel TV Perú after meeting with regional government officials and local mayors.

The transport ministry has set an 8.68bn-sol budget for 2015, including a plan to pave 85% of the country's road network and build the longitudinal highland highway.

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