Spotlight: The progress of Peru's mega infrastructure projects

The progress of large infrastructure projects planned or being built in Peru is mixed, although 2025 will be a year in which various initiatives will make important advances.

While projects such as Lima’s Periférico beltway (US$3.4bn) and the Huancayo-Huancavelica railway (US$565mn) were put out to tender in 2024 and have contracts signed, projects that are in the home straight, such as the new Jorge Chávez airport in Lima (US$2bn), run the risk of new delays due to a lack of coordination with complementary works and road planning, as well as security, among other issues.

According to a report by Scotiabank, in 2023 and 2024 projects worth US$11.3bn were awarded, and the contracts for the design and construction of the works are expected to be signed in the near term. Of the figure, the Periférico or outer ring road is the one with the highest capex and is expected to be ready in 2034.

On the other hand, megaprojects such as line No. 2 of the Lima metro are progressing well after few interruptions in 2024, while the expanded Jorge Chávez airport – which was scheduled to be opened December 18 – is causing concern.

BNamericas reviews the status of recently tendered initiatives and other flagship projects.

Periférico beltway

The project was tendered last April and the contract was signed in November. According to Scotiabank, approvals have already been granted to carry out expropriations. Also, from this year the project will be under the supervision of transport regulator Ositran, and an update on progress will be available every month.

According to investment promotion agency ProInversión, the project will be built by a Spanish consortium comprising Cintra, Acciona and Sacyr and the capex will be divided into two: US$2.3bn for construction, operation and maintenance and another US$1.1bn for land clearance and other works. The project involves a 34.8km highway divided into three sections.

Huancayo-Huancavelica railway

The passenger-freight project to modernize the 128km line in Peru's central highlands was put out to tender last August and Scotiabank says the contract will be signed in the coming weeks since most of the land has already been cleared.

As this project will remodel existing infrastructure, it should be ready by 2030.

The company in charge of construction and operations under a 30-year concession is a consortium formed by Ecuador’s Hidalgo e Hidalgo and Argentina’s Benito Roggio e Hijos. The 128km route is divided into two sections of 78km and 50km.

Marcona port

The US$405mn Marcona port in Ica region was put out to tender in March 2024 and awarded directly to Jinzhao Peru port terminal, and has made significant progress.

The project will be carried out in three stages, and the first US$271mn stage, for studies, construction and operation of the terminal, has already received approval from environmental certifier Senace for its first technical sustainability report (ITS).

According to Scotiabank, the port will be designed during this year and next, while construction and installation of equipment will take place between years three and five. The project could be ready by mid-2029.

Megaprojects in progress

In parallel to the new tenders, projects currently in the pipeline, such as line No. 2 of the Lima metro and the new central highway, are moving forward and are expected to achieve important milestones this year.

In the case of the metro line, the US$5.35bn project registered overall progress of 62% at the end of 2024 with US$479mn spent during the year, the highest figure in the last six years, according to Ositran.

If there are no problems with land releases and progress is made in critical areas, it is likely that a similar or even higher amount will be recorded this year.

“The project is progressing on stage 1B…. Added to this is the construction of 4km between the Insurgentes station (E-04) to the Puerto del Callao station, and the construction of the Central station – with 39% progress in civil works – which already has a definitive engineering study…. The project as a whole could be ready by 2029,” says Scotiabank.

As for the new central highway – a project worth over US$6bn that is being built via a government-to-government agreement with France – the engineering study is projected to be ready in the second half of the year, and progress is being made with the release of land. It involves a 185km route that will link Lima with Junín region and the works could be completed in 2031. The company in charge is PMO Vías, the Peruvian representative of French companies Egis and Setec.

At risk

The new date to open the expanded Jorge Chávez airport, scheduled for the end of March, is questioned by specialists.

The works, which initially will only involve access for private vehicles to the new facilities, are causing concern for the majority of workers who use public transport, and for the underlying problems of congestion and public security.

Inside the airport, 99.1% of the works have been completed, although various operational tests are still pending, such as the fire alarms, water and electricity systems.

In the case of the complementary works for the project, the remodeling of Morales Duárez avenue is starting and is expected to be ready in the second half of March. However, the problems that persist are congestion, poorly judged detours and insecurity.