Peru pushing ports, airports, railways through 2021

Peru’s President Martín Vizcarra aims to get as many infrastructure projects underway as possible until his mandate ends in 2021.

The government is pushing 11 co-financed infrastructure initiatives totaling US$3.7bn in investment, part of a long-term US$26.8bn project portfolio, Carlos Lozada, head of state highway agency Provías, said at the Peru Infrastructure Summit in Lima.

Infrastructure association AFIN has estimated Peru’s infrastructure gap at US$160bn, with US$58bn of that amount required for the transport sector.

A priority for the government is to finish 4,500km of road paving and build 806 bridges set as a goal from 2016-2021, Lozada said. The government aims to pave 91% of the country’s 27,064km highway network by 2021, up from 80% currently.

Other projects include the US$700mn, 970km fourth stretch of the longitudinal highway and Lima’s US$2.05bn, 34.7km Anillo Vial ringroad.

Under a long-term plan the entire 2,634km Pan American highway is converted into a dual-carriageway road, up from just 827km, Lozada at the event. Provías' highway construction and maintenance budget will dip slightly to 6.40bn soles (US$1.9bn) in 2019 from 6.76bn soles last year.

PORTS, AIRPORTS

Peru, which awarded the Salaverry port contract last year, has lined up projects to build new ports in Chimbote, Marcona and Chancay, while the concessionaires operating piers in the port of Callao also plan expansions, according to deputy transport minister Carlos Estremadoyro.

Denmark’s Moller-Maersk is working on studies for a US$800mn project to add four additional docks at the Muelle Norte pier, while DP World plans a US$600mn expansion of Muelle Sur, he said.

The government also seeks to promote a US$1.3bn logistics hub to link the port of Callao with Lima’s Jorge Chávez airport, where Lima Airport Partners is working on a US$1.5bn expansion, according to the ministry.

The government is also reviewing bids for a US$600mn contract to modernize a packet of eight regional airports, while Spain's Sacyr will handle a US$50mn upgrade of Chiclayo airport, Estremadoyro said at the infrastructure summit.

RAIL

A US$276mn contract for the Huancayo-Huancavelica railway upgrade, is also scheduled to be awarded in Q4, while studies are underway for the 324km coastal railway.

Studies are also underway to look for ways to reduce the cost of lines No. 3 and No. 4 of the Lima metro, according to Carlos Ugaz, head of electric train authority AATE. Line No. 4 (21.5km) could cost US$2.8bn, while line No. 3 (24.2km) would have a US$4.5bn price tag, he said.