Inter-American Development Bank (IDB) representative in Peru Viviana Caro on Wednesday announced the financial institution's interest in supporting the Peruvian Government's reconstruction efforts in northern disaster-hit areas.
"We are ready and willing [to do so]. We already have a number of projects in some affected regions," Caro told Andina news agency.
"And we are certainly hoping to accompany them [affected regions] within this positive view, a long-term view," she added.
The economist noted investment in Peru's northern areas, the hardest hit by "Coastal El Niño" phenomenon disasters, represents 17% of the country's GDP.
"It [northern Peru] accounts for a major share of agricultural exports and will have an important impact within the economy," she pointed out.
In this sense, Caro underlined investment will be essential to achieving the economic expansion projected for the short-term.
"We agree with the Economy-Finance Ministry in that public investment, in this case in infrastructure, along with private capitals will be essential to achieving expected [growth] rates."
Likewise, the IDB representative highlighted the many attributes of infrastructure investment, as it covers different sectors like energy, services and transport that boost productive investment.
"It [infrastructure investment] enables connections and the development of services, thus helping chain values maximize their potentialities," she noted.
Public investment efficiency
On the other hand, Caro underscored President Pedro Pablo Kuczynski's administration has taken on a key institutional modernization agenda that facilitates private investment.
Similarly, she recognized the Economy-Finance Ministry's "intensive" work with sub-national governments, as evidenced by the Executive Branch and Regional Governors Meetings (GORE).
Lastly, she reiterated the role of private investment in the country's infrastructure development and gap-closing.
"Investment goes beyond the public investment system; it also covers joint work with the private sector. Works for Taxes and Public-Private Partnerships [PPPs] catalyze investments, and the private sphere is a key element in closing infrastructure gaps," she concluded.