Peru approves US$370mn plan to tackle energy-mining shortfalls

Peru’s energy and mines ministry has approved its 2024-26 investment program (PMI) which looks to close infrastructure gaps and widen access to priority public services.

The PMI consists of 300 priority actions for a combined 1.40bn soles (US$370mn).

The bulk of planned spend will be for rural electrification and environmental remediation and recovery, according to the three-year roadmap.

The PMI diagnostic highlights that “it is increasingly difficult to expand the coverage of the [rural electrification] service because the remaining homes are located in isolated areas and difficult to access.”

Geographic location also is a challenge to advance with natural gas transport infrastructure, principally in the south, which the southern zone integrated gas transport system (SITGAS) would help address.

Social conflict further stymies work on the two fronts.

Regarding remediation, the ministry points to the difficulty in identifying those responsible for abandoned mines and the “complexity” of required investment.

In other sector news, the ministry granted Hidroeléctrica América a definitive concession for the 19.8MW Pachachaca 2 hydro project in Apurímac region.

And energy and mining investment regulator Osinergmin greenlighted natural gas distributor Contugas’ 2023 plan, which includes the installation of 42km of polyethylene piping.