Peru's municipalities opting for asset projects to promote private investment

Peru is committed to the development of so-called asset projects – a type of public-private partnership developed on state-owned land – to promote private investment at the provincial and district level.

This mechanism does not involve any disbursements by the State and it enables works to be carried out in jurisdictions that do not necessarily have sufficient budget for such developments.

There are some 18 projects identified by authorities that can be carried out under this concept in five municipalities in the short term. These municipalities are Ancón, Surquillo and San Bartolo in the Lima region, Alto Selva Alegre in the Arequipa region, and Chiclayo in the Lambayeque region, and the initiatives would involve just over 1bn soles (US$271mn). 

The possible projects include the creation of financial centers, malls and sports complexes, among others.

“ProInversión maintains active technical assistance for various municipalities and there are plenty of lands [available for projects] in which the team has led an inspection. We have to get even closer to the private sector," Emerson Castro, project portfolio director of private investment promotion agency ProInversión, said at an event hosted by the agency.

According to the executive, the 18 projects involve a total of 432ha and all have been supported by ProInversión for the preparation of technical profiles.

Larger entities such as the culture ministry (Mincul) and national superintendency of public registries (Sunarp) will also promote up to nine projects on land they own, but the developments have not yet been defined.

According to representatives of the state bodies, the projects are open to proposals from the private sector according to pre-established requirements.

The municipality of Ancón, north of capital Lima, has the greatest expectations for developing asset projects. Mayor Samuel Daza said that it has a portfolio of five initiatives involving 450mn soles.

“We will have a direct and rapid influence on the [Peruvian] economy due to the proximity to important projects that will be developed in the short term, including the Chancay megaport," said Daza.

In addition to these projects, the Ancón industrial park (PIA) will also be built in the municipality, a US$762mn initiative that is expected to be awarded this year.

According to ProInversión, the 27 identified projects are a "first provision" of the potential portfolio of asset projects and it will continue to seek possible initiatives focused on Peru's provinces.