Spotlight: Peru infrastructure plan's progress

Even though progress has been slow going for Peru's national infrastructure plan (PNIC), the economy and finance ministry has said it will update the plan with new projects focused on sustainability as part of its economic recovery push.

The PNIC was launched in 2019 and by the end of that year had advanced 25%. By the second quarter of this year, nearly 40% was complete, according to a report from foreign trade group ComexPerú and private-sector competitiveness council CPC.

What follows are the main takeaways about PNIC progress from both entities:

PORT SECTOR

The sector had an average progress of 55% for the four projects in PNIC.

• Muelle Sur container terminal: Progress of 57%. with a total investment of 2.74bn soles (US$706mn). Execution in the second quarter was 32mn soles.
• Salaverry multipurpose terminal: Progress at 45%. The project’s investment amounts to 1.01bn soles, with 39.7mn soles being executed in Q2.
• General San Martín Paracas multipurpose terminal: Progress of 73% and without any execution in the quarter. Total investment estimated at 933mn soles.
• Muelle Norte multipurpose terminal: Progress at 48%, with an execution of 25mn soles in Q2. The project’s investment is around 3.36bn soles.

ROADS AND TRANSPORTATION

The highways - many of which had seen their works started at the time of being included in PNIC – saw little progress in the second quarter. Some are close to being finished.

• Autopista del Sol: Progress at 89%. The project’s investment is 1.85bn soles, with 13mn soles executed in the quarter.
• Longitudinal de la Sierra - stretch 2: Progress of 83%, with no execution in the quarter. The investment of the works amounts to 1bn soles.
• Red Vial No. 4: Progress at 85%. The project’s investment is 1.07bn soles.
• Casma-Tingo María: Completed.

Regarding line No. 2 of the Lima metro, MEF said progress reached 43% as of June, with 199mn soles being executed in the quarter. The total investment is estimated at around 20bn soles.

ELECTRIC SECTOR

The sector, whose projects mostly started from scratch, has showed an uneven advance. The 500kV Mantaro - Nueva Yanango - Carapongo transmission line, with its investment of 1.03bn soles, stands out with 83% progress.

• 500kV La Niña - Piura line: Progress at 10%. Total investment is 467mn soles.
• San Gabán III hydroelectric plant: Progress of 48% at the end of Q1 (figure not available for Q2). The project’s investment is 1.68bn soles.

AGRICULTURE

Peru’s agricultural sector is known for the wide range of fruits and vegetables that it exports.

Its growth potential could be much greater if large projects that have been in the pipeline for years could advance at a faster pace, especially the third stage of the Chavimochic irrigation project, in La Libertad region, and the second stage of Majes Siguas irrigation project (Arequipa).

• Chavimochic III: Progress reached 26.2% from 25.9% at the end of 2019. The project’s investment is 3.15bn soles, with 2.4mn soles executed in the second quarter.
• Majes Siguas II: Progress was 27.3% compared to 26.5% at end-2019. The investment is 2.02bn soles, with 4.4mn soles executed in the quarter.

NO ADVANCE

Although the updated PNIC will include new projects, it is also key to unblock those that have not made any advance. CPC confirmed to BNamericas that there are 22 projects with zero progress, totaling around US$19bn.

Representing more than 60% of the pending investments, these are the projects that CPC sees as most urgent to start.

• Line No. 3 of the Lima metro: Its estimated investment is 23.3bn soles and the transport and communications ministry (MTC) is heading the project.
• Integrated system of gas transport-South Zone (Sitgas): The public-private partnership project will cost around 16.1bn soles, with the energy and mines ministry being in charge.
• Lima peripheral ring road: MTC is in charge of the PPP project that has an estimated investment of 9.53bn soles.