Peru grapples with rising number of paralyzed infra projects

Peru registered a rising number of stalled infrastructure projects, despite regular announcements and optimism from public entities.

A recent report by the comptroller general showed that 2,476 projects with associated investment of 43.1bn soles (US$11.8bn) were paralyzed at the end of 2024, with 22.6bn soles still to be executed.

In 2023, the entity reported 2,298 halted projects, with 27bn soles in investments and 13.8bn soles not spent.

See the report in the Documents box in the top-right corner of the screen.

Although megaprojects overseen by regulator Ositran, like Lima's metro line No. 2 or the Muelle Sur port terminal expansion, have been unblocked, medium-scale projects are facing trouble.

There has been no clear reduction in the outstanding portfolio, as projects with higher capex have been suspended.

Quarter	Number works paralyzed	Value of the works (billion soles)	Amount to be executed (billion soles)
1Q24	2,324	33.1	16.2
2Q24	2,256	36.1	17.2
3Q24	2,648	43.6	19.2
4Q24	2,476	43.1	22.6

 

Source: Comptroller general data compiled by BNamericas

The rising value of investments yet to be executed is the main issue and suggests a need for stricter government oversight.

According to the report, 628 projects involving 15.9bn soles were paralyzed due to contract breaches, and lack of resources affected 526 (2.14bn soles), technical deficiencies 271 (3.22bn soles), and legal disputes and arbitration 225 (14.9bn soles). Around 800 were abandoned, caught up in social conflicts or lacked permits, among other reasons. 

Local administrations oversaw 1,877 of the paralyzed projects, involving investments of 10.6bn soles, of which 3.88bn soles were not executed, while regional governments were responsible for 335 worth 15.7bn soles and 7.91bn soles not spent and the national government for 436 worth 17.2bn soles and 7.39bn soles not executed.