Peru 2014 tax swap program lines up US$205mn for infra projects

Friday, December 19, 2014

Peruvian infrastructure investments through the tax swap program Obras por Impuestos jumped 48% this year as companies in the mining, banking and telecommunications industries invested in 88 projects, the government said.

The program, operated by private investment promotion agency Proinversión to cover infrastructure needs, lined up 609mn soles (US$205mn) in projects this year compared with 411mn soles in 2013, the agency said in a statement.

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The program has lined up investments totaling 1.481bn soles in 151 projects since the program's implementation in 2009, benefitting 8mn Peruvians, according to Proinversión.

The program has involved 13 of the country's 25 regional governments, 74 local government offices and 53 companies, the agency said. Arequipa, Moquegua, Tacna, La Libertad, Pasco and Piura regions led investments.

Companies leading investment in the program include miners Southern Copper, Volcan and Antamina, banks Banco de Crédito del Perú and Interbank, and telephone company Telefónica del Perú, Proinversión said.

About 44% of infrastructure investment has been allocated to transport, 22% for water and sewerage, and 20% in health and education, according to the agency.