Peru's US$600mn education infra sector seen as increasingly attractive

Peru’s US$600mn educational infrastructure sector has attracted large companies because, among other reasons, the projects are not as complex as those in the port, electricity or road infrastructure sectors.

Mexican construction company Mahrnos was awarded a US$59mn PPP contract to build three high-performance schools in the regions of Pasco, Huancavelica and Cusco. While awarding took place in March, contract signing is expected for Q4.

A representative of miner Southern Peru said during the recent Perumin event that the company will build five high-performance schools in Tacna, Moquegua, Arequipa, Apurímac and Cajamarca under the works-for-taxes model, which allows companies to finance infrastructure projects instead of paying certain taxes.

Total investment is 500mn soles (US$125mn) and the schools will be completed in the next two years. Work has started in Tacna and Moquegua, with Arequipa to follow next. Work on the school in Apurímac will start at the end of the year.

The works-for-taxes mechanism is especially popular for high-performance schools in the regions of Madre de Dios, Loreto and Lambayeque, where investments of US$19mn, US$19mn and US$16mn are being made.

OTHER PROJECTS

Private investment promotion agency ProInversión plans construction and maintenance tenders for at-risk schools in Lima worth US$554mn next year. The projects are in the structuring stage and contracts expected to be valid for 20 years.

One project involves maintenance of 13 schools in the districts of Villa El Salvador and San Juan de Miraflores in Lima and investment of US$255mn.

The Villa María del Triunfo project demands US$68mn and covers five schools, while the Ate-San Juan de Lurigancho and Comas-San Martín de Porres projects will demand US$140mn and US$90mn for 14 and nine new schools.