Peru's ProInversión avoids political instability and pushes ahead with key tenders

Peru's investment promotion agency, ProInversión, is emerging as one of the country's most efficient and trusted institutions, seemingly unaffected by general political instability.

Between January and August, it awarded PPPs worth US$6.08 billion, compared with US$2.33bn in 2023 and US$710 million between 2019 and 2022. In 2014, it awarded a record US$6.30bn, with Lima's US$5.35bn metro line No. 2 accounting for the biggest chunk.

ProInversión expects to award another US$2bn this year, with projects involving higher capex than before and of more interest to investors, who have been participating more actively in the agency's meetings and events.

Furthermore, many of the projects to be offered are well known by investors, sparking optimism that they can advance more easily due to simplified and streamlined processes and confidence in ProInversión's ability to launch tenders for projects exceeding US$1bn.

MILESTONES  

Of the 12 projects that were awarded so far this year, the US$3.8bn Peripheral ring road, the US$405mn Marcona port terminal, and the US$565mn modernization of the Huancayo-Huancavelica rail line stand out because they all faced long delays.  

The tender for the ring road was launched after it was in the portfolio for 12 years. It was the second biggest tender ProInversión ever launched, after Lima's metro line No. 2.

But the tender was at risk in September 2023, when the transport and communications ministry said it wanted to develop the project under a government-to-government contract.

The rail modernization covers a 129km route in the central mountains and was awarded after 17 years, being the project that has remained in the portfolio for the longest period without progressing. Argentine-Ecuadoran consortium Ferroviaria del Centro, comprising Hidalgo e Hidalgo and Benito Roggio, won the contract.

A tender for Marcona port was launched in March, although the initiative was first proposed in 2017. It was won by Terminal Portuario Jinzhao Perú, which will be responsible for the design, financing, construction, operation and maintenance.

ProInversión will also award or declare of public interest various wastewater treatment plants, such as one in Puerto Maldonado.

The agency aims to award 23 projects in total this year. The biggest ones are the US$1.18bn Longitudinal de la Sierra section 4, the US$762mn Ancón industrial park, the US$171mn transmission groups 3 and 4, the US$154mn contract to operate and maintain the Villa el Salvador hospital and the US$98mn Maldonado wastewater treatment plant.