Irrigation projects could generate US$9.2bn through public-private partnership

By ProInversión

This is a machine translation of the original press release issued in Spanish.

Promising future. Private Investment Promotion Agency - PROINVERSIÓN reports that irrigation projects being developed through the Public-Private Partnership (PPP) modality could promote investments in infrastructure and agricultural development for US$ 9.2 billion.

These are the Chavimochic III Stage irrigation megaprojects, Majes Siguas II Stage, Chinecas and Chancay-Lambayeque, which will jointly promote investments in infrastructure for US$ 2,630 million and private investments in agricultural development for US$ 6,560 million.

In total, they will incorporate 340.5 thousand hectares of land for agricultural export crops. Of this total, 171.5 thousand hectares are new lands that will allow doubling agro-industrial exports from US$10 billion (2023) to US$22 billion, as well as increasing direct and indirect employment by 1.1 million.

In this way, private investment in agriculture will boost the country's economic development and promote new investment opportunities through legal stability.

Currently, the country has 250 thousand hectares dedicated to modern agriculture and with the incorporation of new lands, Peru could become an agro-industrial hub, guarantee the country's food security and boost the economy. Likewise, the irrigation projects to be developed through PPPs will facilitate the creation of productive clusters, linking small and medium-sized companies with large agro-industrial companies in the country.

PROJECTS

The irrigation project “Chancay-Lambayeque Valley Integrated Water System” (Chancay-Lambayeque) is being structured by PROINVERSIÓN and includes the construction of two dams (Montería and Sicán) and the execution of conduction and distribution works to irrigate 20,000 new hectares and improve irrigation and productivity of another 88,000, with an estimated investment of US$580 million.

Meanwhile, the Chinecas project is being studied - by a specialized consulting firm - to define the investment mechanism (it could be a PPP). With an investment of US$700 million in infrastructure, it will allow the incorporation of 50 thousand hectares of new land and the improvement of 33 thousand hectares.

Private investments for the agricultural development of the new lands in China would be US$1.9 billion and would generate annual exports of US$1.5 billion.

Regarding the Chavimochic III Stage project, PROINVERSIÓN was commissioned by the Regional Government of La Libertad to contract and prepare the technical studies, evaluation report and new promotion process for the process that requires an estimated investment of US$700 million to incorporate 63 thousand new hectares and improve 48 thousand hectares, which will facilitate investments of approximately US$2.4 billion in agricultural development.

Regarding Majes Siguas II Stage, the agency expects that this project will be developed through a PPP to give it sustainability and the development of modern and highly productive agriculture.

In addition to the four irrigation projects described, PROINVERSIÓN mentions that nearly 270 thousand hectares have been identified that can be incorporated into modern agriculture through the following projects: Olmos II Stage (50 thousand hectares), Pampa de Concón Topará (20 thousand hectares), Pampas Nazca and Caravelí (100 thousand hectares), Majes I optimization (8 thousand hectares), Alto Piura (20 thousand hectares), Chira-Piura (40 thousand hectares) and the Water Strengthening of the Valley of Ica, Pisco and Huancavelica (30 thousand hectares improved).