Peru looks to attract Chilean infrastructure investors

Peruvian officials are looking to attract Chilean investment to infrastructure and water projects outside of capital Lima.

“There’s an infrastructure and development gap in all departments,” Julio Polanco, economy and commerce adviser to the Peruvian embassy in Chile, said at a conference in Chilean capital Santiago that was organized by export and tourism promotion agency PromPerú.

“Most Chilean firms that have visited Peru have been involved in connectivity issues, highways, water treatment, mining equipment and more,” Polanco told BNamericas.

One of the main incentives touted by PromPerú is a tax refund system for projects above US$5mn that are completed within a 24-month period. These projects get an anticipated refund of the country's 18% general sales tax (IGV).

Polanco said hotel projects have benefited the most from the refund system, but the country wants to expand it to other sectors. 

“We want Peru to be seen not only as a destination market, but also as a platform to access other markets,” said Polanco.

Financial services, ICT and call centers are sectors where Chilean firms have competitive advantages, he told BNamericas.

When asked how the investment promotion agenda fits in with the anti-corruption agenda of President Martín Vizcarra, Polanco said that PromPerú recently went through a restructuring process.

“We have reinforced the structuring mechanism, we have improved project structuring and control mechanisms in order to facilitate information sharing,” he said.