Snapshot: The new projects in ProInversión's portfolio

Peru’s investment promotion agency ProInversión updated its portfolio of PPP projects, and has incorporated 24 new initiatives requiring US$2.54bn.

ProInversión looks to award four groups of electricity transmission projects, a port terminal, maintenance of a hospital, and various sanitation and irrigation projects in 2024-26. In parallel, work is being done to incorporate another seven projects for more than US$1.1bn, and a mining concession for US$512mn in the north of the country.

Agency head José Salardi outlined the projects in a presentation before mining engineers institute IIMP. According to the executive director, meetings will continue to be held with local authorities to incorporate new initiatives.

“Although there is an interesting portfolio for this year and next, we must think about the future from 2025 onwards. There is a lot of work with regional, municipal and district governments to build a future portfolio of projects and see which ones can be promoted by these mechanisms,” Salardi said.

NEW ONES

The transport and communication ministry commissioned ProInversión to award the national transmission plan 2023-32 at the beginning of the year. The agency has divided the projects into four groups, and these will be awarded in Q2 and Q3 next year. The first two – with three and five projects, respectively – will be awarded in Q2 and involve US$597mn, while the third and fourth groups – five projects in each group – are due be put out to tender in 3Q24 and involve a total of US$273mn.

Regarding water and sanitation, the Paita and Talara desalination plant (US$150mn) will be awarded in 4Q26; while the Lambayeque desalination plant (US$49mn) will be tendered in 3Q25 with the feasibility study scheduled for 2Q24.

There are also two water supply projects in the northern area. The first is the Chinecas project, an irrigation project that seeks to ensure water supply in Áncash region (Chimbote, Nepeña, Casma and Sechin provinces). The total cost amounts to US$500mn but its award date is yet to be defined, according to ProInversión.

There is also the Chancay Valley comprehensive water system project in Lambayeque region with a cost US$619mn and which is expected to be awarded directly in 1Q26.

Finally, the Chimbote port terminal (US$172mn) in Áncash region, and the operation and maintenance of Cajamarca hospital (US$176mn) were officially incorporated into the portfolio. The former is expected to be awarded directly in 3Q24 and the latter in 1Q25.

IN PROGRESS

The agency also has other initiatives that will soon be incorporated into the plans. The one that stands out the most is the concession of 18 road conservation projects for US$1.07bn, which ProInversión wants to be put out to tender in 2024.

There is also a project to boost domestic gas connections in the southern zone for US$60mn, the construction of a cable car in Puno region (US$20mn), and operation and maintenance services for the a children’s health center (US$16mn). For these projects there is still no defined award date.

EL ALGARROBO

Lastly, there is the possible concession of El Algarrobo, a copper and zinc mining deposit that will be awarded via the Proyectos en Activos mechanism – with private investment awarded on the basis of assets owned by public entities. According to Salardi, the the project in Piura region is estimated to need US$512mn, and a mining company has already shown interest.

“Proyectos en Activos generally have a shorter route than [the award] of a PPP. First you have to pass the social evaluation stage … and on that basis the project could easily be awarded next year. It will depend on how we publicize it,” added the official.