ProInversión: '15 companies have registered interest in the Ancón industrial park'

The Peruvian government has struggled to unlock and carry out large infrastructure projects throughout the country despite the efforts of state investment promotion agency ProInversión.

The agency did manage to award six projects worth over US$1bn in the first half of this year, but that figure represents only a fraction of the projects it has in its portfolio.

The agency's goal for the second half of the year is to award 12 projects that involve investments of more than US$2bn, including the Ancón industrial park (PIA), which involves creating a 715ha industrial hub in the Lima metropolitan area, within 40km of Callao port, Jorge Chávez international airport and the new Chancay mega port.

BNamericas speaks with José Rogger Incio, who heads ProInversión's PIA project, to learn more.

BNamericas: The project was scheduled to be awarded in September. Is that schedule still in place?

Incio: Both the schedule and the capex of the project remain the same at present, which is estimated at US$762mn. The inflationary effect on construction costs in the last two years is currently being reviewed. The latest adjustments to the project are related to the requirements of the tender and contractual conditions.

BNamericas: What adjustments did you make to the requirements for the bidding process?

Incio: The companies that will be bidding have been asked to prove that they have developed industrial projects during the last 15 years – before it was only 10 – for a total area of at least 100ha (previously 142.9ha). On the financial side, their income statements for 2020 and 2021 are now being requested, and they must demonstrate that the company has shareholders' equity of US$56mn as of the end of 2021.

Likewise, they have to demonstrate sales levels of at least US$23.3mn must be demonstrated during the two fiscal years prior to the current one. Before, that amount was put at US$32mn. Lastly, the bid guarantee was lowered from US$3mn to US$2.5mn, and the guarantee of faithful compliance was cut from US$30mn to US$23.6mn.

BNamericas: What changes were made to the contractual bases?

Incio: Now the investment commitment is for 22 years (previously 16), the company capital is at least 85% of the value offered for the award of the land – at the closing date at least 25% must have been paid – and the investment plan was changed from having to be submitted in the 10th month to the 14th month after signing the contract.

On the other hand, the contract now includes periodic monitoring by the production ministry and there are four investment periods (previously 3): for years 1-6, years 7-12, years 13-17 and years 18-22. These periods are counted from signing the contract.

BNamericas: The mechanism to develop the initiative will be via projects in assets. What is the reason for that decision?

Incio: For the PIA, a public-private partnership can't be used – the mechanism most often used by ProInversión – because this is a project that involves developing infrastructure that isn't for public service. The park is a project that does not involve public funds or transfer risks to the State, which are essential characteristics of a project in assets.

BNamericas: Are there any obstacles and/or any other factors that could delay the progress of the project?

Incio: New companies interested in the project might request more time to present their prequalification credentials. That could lead to an extension in the established deadlines. On the other hand, the social and political climate is important and significantly influences the decisions of every investor.

BNamericas: What makes the PIA attractive compared with other projects?

Incio: The project is being considered within the PNISC 2022–25 [national plan for sustainable infrastructure for competitiveness] prioritized by the government, and has the support of the district council authority. The latter has expressed its commitment to support the investor who is awarded the work with granting permits and licenses.

Likewise, another important factor is that the project has all the conditions to be considered a special economic zone – an area for the installation of companies that develop industrial activities with benefits in tax, customs and logistics – which we are promoting and it would be the first industrial park with a private operator to acquire this status.

BNamericas: Are there any companies interested in developing the project yet?

Incio: Yes. 15 companies have registered, of which at least five have reiterated their interest in the project. We can't mention them at this stage of the process until after the pre-qualification has been carried out.