The United Kingdom will provide US$1.2 billion to Peru to finance infrastructure projects in favor of development, British Ambassador to Lima Anwar Choudhury announced on Friday.
Resources will be provided by UK Export Finance (UKEF), the bloc's export credit agency, to finance exports of UK products and services in infrastructure, energy and sanitation sectors, among others.
In addition, UKEF will provide an additional US$200 million in funding for the development of projects carried out in cooperation with the Development Bank of Latin America (CAF).
In this sense, UKEF and CAF will articulate efforts to identify investment projects in Peru and Latin America, putting special emphasis on infrastructure, energy and sanitation sectors, from which they might get UK experience, products and services.
This cooperation points to Latin America as a priority region for UKEF, which provides significant potential for UK exports.
"I am pleased to announce that UK Export Finance, in cooperation with CAF, will finance at least US$200 million for infrastructure, energy and sanitation projects; we will ease the joint work of Peruvian and UK firms," Anwar Choudhury said.
On the other hand, CAF representative in Peru Eleonora Silva expressed her satisfaction with this partnership, which will enable to work with UKEF and UK suppliers in order to finance projects through 19 CAF member countries.
"CAF pledged to continue building trade ties with the United Kingdom within the long term. The UK export credit agency's support will be essential," she underlined.
Remarks were made in the conference "Working with CAF: Infrastructure Opportunities in Latin America," organized by the British Embassy in Lima, the United Kingdom Department for International Trade and CAF.
Local currency financing
UKEF guarantees a loan to a Peruvian buyer that is purchasing products or services from a UK exporter, financed in a local currency.
Bilateral trade of goods between Peru and the United Kingdom totaled more than US$783 million in the first 11 months of 2016, up by 44% from the same period in 2015.
The value of new opportunities for British businesses is estimated at US$375 million only in mining. Other areas, such as health, infrastructure, ports and railways account for about US$1.2 billion over the next five years.