Snapshot: Peru's paralyzed infrastructure works

There are 1,746 works representing 22bn soles (US$5.95bn) pending in Peru, mostly due to lack of resources, contractual breaches, discrepancies and arbitrations, according to a report by the comptroller general.

Of the total, 1,250 are carried out by local administrations.

To finish the works, 10.7bn soles are needed, according to the report.

While the government has been promoting higher public investment to boost the economy, 292 works restarted in Q1 – but 159 stopped, the figures show.

Cusco concentrates 297 paralyzed works for 415mn soles and Puno 220 worth 523mn.

While only 63 are paralyzed in La Libertad, they represent 2.91bn soles. In the region, the national government is responsible for the 759mn soles rehabilitation of the Pallasca-Santiago de Chuco highway, but works stopped without a reason given.

In Cajamarca, 107 works for 1.11bn soles are halted, the biggest representing 1.05bn, relates to broadband infrastructure and was stopped due to breach of contract.

Piura concentrates 89 works for 908mn soles. One of them is the 575mn rehabilitation of the Huancabamba highway, carried out by Provías Nacional.

In Ancash, 102 works for 769mn soles are halted and in Tacna 37 worth 647mn.

ENTITIES

Stopped works overseen by local governments represent 2.14bn soles, by regional governments 2.06bn (181 projects) and by the national government 6.53bn (313).

The transport and communications ministry is responsible for 49 projects nationally, 50 regionally and 373 locally. The housing, construction and sanitation ministry accounts for 69, 22 and 312, respectively.

Some 120 paralyzed works for 3.08bn soles belong to the Authority for Reconstruction with Changes, which was created in 2017 to deal with the aftermath of El Niño. Mostly preventive works for 1.62bn are pending.