Andina

GI Hub: Peru eyes US$327 bn in infrastructure investments

Estadio Nacional, Via Expresa, Ministerio de Defensa,Javier Prado, Centro Financiero, Viviendas, Construcción, Campo de Marte, Trebol de Javier Prado, Miraflores Surco

Estadio Nacional, Via Expresa, Ministerio de Defensa,Javier Prado, Centro Financiero, Viviendas, Construcción, Campo de Marte, Trebol de Javier Prado, Miraflores Surco

10:45 | Lima, Jul. 31.

The Global Infrastructure Hub (GI Hub), a G20 initiative to increase flow and quality of infrastructure, highlighted Peru's attractiveness to draw major international capitals for infrastructure thanks to its economic stability and increasing economic growth rates.

"Peru is in a great position to benefit from the vast amount of funds available in infrastructure markets, which total some US$152 billion at the moment," GI Hub CEO Christopher Heathcote told El Peruano official gazette

GI Hub's Global Infrastructure Outlook estimates Peru will meet 82% of its total infrastructure investment needs by 2040, standing at US$399 billion. 

That means the Inca country will need US$327 billion worth of investments in 23 years, a relatively narrow gap when compared to other countries in the region. 

GI Hub's report also revealed Peru's infrastructure gap is deeper in terms of railroads (additional 91% required), airports (79%) and ports (76%). 

The study also projects the South American nation's GDP will more than double by 2040, and its population will grow by 27% by then. 

In this sense, the GI Hub head noted the Peruvian Government is aware of the need to draw more infrastructure investment, and underscored the country's attractiveness to this end. 

"Peru offers a positive scenario for investors, so there are great opportunities for foreign financial resources to flow to the country," Heathcote pointed out. 

GDP impact

Lastly, Heathcote went on to address the role of infrastructure as "the system supporting economic growth."

"Investing 1% of GDP in infrastructure can raise the economy by 1.5%-2.5% in the next four years," he noted. 

Thus, the CEO advised Peru to choose the right infrastructure projects and to execute them in an efficient manner. 

(END) DOP/CNA/DHT/MVB

Published: 7/31/2017