Financing in the pipeline for Peru electromobility build-out

Efforts to advance with electromobility in Peru are expected to receive a boost with a potential injection of multilateral funds.

IDB Invest, the private lending arm of regional development bank IDB, is reviewing a financing request from Andes Motor and Diveimport for the import of electric vehicles and charging infrastructure.

The operation would consist of a revolving financing facility for up to US$20mn.

“It is expected that electric vehicles will gradually replace traditional diesel and gas vehicles, reducing carbon emissions. This initiative is aligned with Peru's commitment under the 2015 Paris Agreement and the 2020 Climate Ambition Summit,” according to IDB Invest.

The IDB Invest board is scheduled to review the financing package next month.

In its latest report, local automobile association AAP highlights that sales of hybrid and electric vehicles in January-September rose 56% to 5,010 units which surpassed the total sold last year.

The association adds, however, “that the pace of this growth could be accelerated if there were public policies to promote this market.”

In September, Peru’s transport minister Raúl Pérez Reyes met with China’s industry and information technology deputy minister Shan Zhongde in Beijing, where electromobility was among the areas discussed.

The talks included the possibility of establishing a sovereign fund or financing lines through Chinese financial institutions for the acquisition of public transport vehicles.

In the current congressional period, 10 electromobility promotion bills have been introduced since 2022, all of which continue under debate at the committee level.

One point of contention would be tax breaks, which some argue would have a fiscal impact.

Also read Repsol inaugurates its first electric car charging station in Peru

Source: AAP