So far in 2024, the State-run Private Investment Promotion Agency (ProInversion) has awarded two mega investment projects in road and port infrastructure worth US$3.805 billion —a result that exceeded by 65% that of all of 2023 (US$2.3 billion).
The amount proves the commitment to promoting and attracting private investments for the development of infrastructure and public services, as well as to enhancing the country's productivity and competitiveness, ProInversion Executive-Director Jose Salardi said.
He added that this result reflects private sector confidence in the Public Private Partnership (PPP) mechanism as long-term investments.
At the end of March, ProInversion awarded the New San Juan de Marcona Port Terminal to the Jinzhao Peru Port Terminal, for the design, financing, construction, operation, and maintenance of the project worth US$405 million.
Similarly, the port project will reactivate mining investments worth US$15 billion in the country's southern area and will impact economic growth, generating jobs, improving income and quality of life for the population in Ica, Ayacucho, Apurimac, Cusco, and Arequipa regions.
Likewise, it will promote the development, by the Peruvian State, of the Andahuaylas-Marcona Railway, worth approximately US$5 billion, with the purpose of energizing the southern mining corridor. It could also reactivate the development of the petrochemical industry thanks to an investment of more than US$2 billion.
Last Thursday, the Peripheral Road Ring —which entails a total investment of US$3.4 billion, including property management costs— was awarded to the Spanish consortium Cintra, Acciona, and Sacyr. It will be in charge of the design, financing, construction, operation, and maintenance of the megaproject for 30 years.
The Peripheral Road Ring will connect 12 districts of Lima and Callao, benefiting 4.5 million people. It is the largest road project awarded by ProInversion over the last 10 years.
Prime Minister Gustavo Adrianzen highlighted this awarding process, because it reflects a concrete case of the economy starting to become reactivated.
"A US$3.4 billion project is being awarded, and investors around the world must get to know that Peru is a reliable and stable country, with safe rules (for investments). There is little left to reach 50% of ProInversion's investment portfolio planned for 2024, and we will continue undertaking efforts," he indicated.
The Peripheral Road Ring considers the construction of a modern 34.8-kilometer-long freeway that will facilitate the interconnection of users with the Northern and Southern Pan American Highway and the Central Highway, plus access to the Port of Callao, Jorge Chavez International Airport, the Port of Chancay, and the future Ancon Industrial Park.
According to projections, it will reduce travel time and will be interconnected with the main urban transport systems of Metropolitan Lima and Callao: Lima Metro Line 1 and Line 2, branch of Metro Line 4, the Metropolitan bus system, and the future Lurigancho – Independencia cable car system.
The Road Ring's positive impact will be such that it will create approximately 70,000 direct and indirect jobs in the construction phase, plus 20,000 jobs in the operation and maintenance phase in the industry linked to construction, commerce, and services sector in Lima and Callao. It will also lower the transportation infrastructure gap in Peru by 13%.
Portfolio of projects
In 2024, ProInversion expects to award 26 projects under the Public Private Partnership (PPP) and Projects in Assets modalities, thanks to an investment of US$8 billion.
Of the portfolio, 15 projects are in the energy sector (US$900 million); four in transportation and communications (US$5.3 billion), and five in water-sanitation (US$800 million).
A health project is also considered: Operation and Maintenance of the New Villa El Salvador Emergency Hospital (US$154 million) and the Ancon Industrial Park (US$762 million).