Snapshot: Paralyzed infra works in Peru

Although Peru registers an infrastructure deficit worth 363bn soles (US$98.4bn) by 2039, 2,324 works remain paralyzed, totaling investments of 33.2bn soles, with 16.2bn soles still to be executed.

Of the total, 553 works are paralyzed due to lack of financial resources, 531 for breach of contract, 159 due to discrepancies and arbitrations, 106 because of social conflicts and the balance for reasons such as technical deficiency, climate events or abandonment, according to a report the comptroller general recently published.

See the report in the Documents box in the top right corner.

In March 2023, the comptroller registered 1,746 paralyzed projects worth 22bn soles.

The comptroller said that 596 works were unblocked between September 2023, when the previous report was published, and March 2024, but 1,174 projects for 15.7bn soles were paralyzed during the period.

And since unblocking is slow, the situation is unsustainable.

Of the paralyzed works, 217 register progress of 20-30%, with 4.9bn soles to be executed and 467 are at least 80% finished, involving around 800mn soles to be executed and which could be easily unblocked if associated controversies are resolved.

According to the report, 545 blocked works are 50-70% complete. They are valued at 7.37bn soles, with 3.01bn soles to be executed.

In La Libertad region, 75 projects valued at 5.23bn soles are paralyzed, with 3.58bn soles to be executed. The most important paralyzed project is the rehabilitation and improvement of the Pallasca-Mollepata highway, involving 754mn soles and carried out by the national government.

Arequipa reports 112 paralyzed projects for 4.24bn soles and 2.28bn soles to be executed. The most important project is the 228mn-sol expansion of a prison complex.

In Cusco region, 302 works are paralyzed, with 477mn soles pending execution, Puno has 288 with 753mn soles pending and Lima 180 and 976mn soles pending.

Of the total, 633 works valued at 9.39bn soles are in the transportation and communications sector, 47 of which correspond to the national government, 69 to regional and 517 to local governments.

The construction and water sector has 547 works for 6.12bn soles paralyzed, 83 associated with the national and 34 with the regional government, and 430 with local governments.

The balance in other sectors is as follows:

• Education: 367 projects for 1.93bn soles;
• Agriculture: 282 for 8.08bn soles;
• Energy and mines: 67 for 310mn soles;
• Health: 59 for 3.98bn soles;
• Others: 369 for 3.35bn soles.