Legislator submits bill to restrict port concession investment

Peruvian congressman Jacques Rodrich Ackerman has submitted a bill that would block investment from border countries in Peru's port concessions, according to information from Peru's congress. The bill follows the passage earlier this month of Peru's national port development plan (Plan Nacional de Desarrollo Portuario), which outlines development projects for port modernization and private sector participation. Rodrich highlights that one area that deserves special attention is competition that exists today with other ports in the region, principally with border countries that have Pacific coast ports (Chile and Ecuador). Investment from these competing countries would not guarantee that Peru's ports could develop at the same rate as their Chilean and Ecuadorian counterparts. Investment from the two countries would be biased, responding to nationalistic aspects such as their own competitive strategies and national security, according to the legislator. Rodrich adds that the ports become strategic entry and exit points, and are important for Peru's economy and a key national security element. He cites article 72 of Peru's constitution that states: "The law can, only for reason of national security, establish temporarily specific restrictions and prohibitions for the purchase, possession, operation and transfer of determined goods." The bill would affect only Chile and Ecuador, restricting investment from these countries in Peruvian port concessions for 40 years. Rodrich is from the Perú Posible party - the same party President Alejandro Toledo belongs to - that holds 47 of 120 congressional seats. He is president of the transport and communications committee. Peru's national port plan calls for spending some US$1bn through 2012, of which US$224mn would be spent in 2005-2006. Of the latter amount, US$193mn should be invested in Callao port, which is due to be the first port to be put out to concession. GOVERNMENT RESPONSE Investment that helps develop Peru has "no colors or flags," transport and communications minister José Ortiz said in response to the bill. "Chilean investments exist in many areas of our business activity. We are a country that requires development and, in this aspect, investments are welcome. Nevertheless, we should analyze the legislative initiative and determine its reaches," news service Andina quoted Ortiz as saying.