Lima 2019's economic impact will total around S/5 billion (about US$1.5 billion), or 0.7% of the country's GDP, according to estimates by the
Organizing Committee of the Games (COPAL), said on Tuesday Scotiabank's Department of Economic Studies.
"This amount includes
infrastructure investment (US$1 billion, excluding road works) as well as tourism expenses," stated Assistant Manager of Real Economy at Scotiabank Pablo Nano.
"Investment started in 2016, with the execution of pre-investment studies in major infrastructure works, and will continue until the beginning of
the Games," he said.
According to COPAL, the executed budget in final infrastructure (construction and remodeling), temporary infrastructure, and operational expenses will average US$1 billion, less than the original budget of S/4.3 billion (about US$1.280 billion).
"This would represent a saving of 21%, in contrast to Toronto 2015 and Guadalajara 2011, where executed investment exceeded the initial one by 81% and 300%, respectively," Scotiabank pointed out.
"It must be noted the Project Management Office (PMO) mechanism was implemented for the delivery of Lima 2019," it added.
In a PMO, the designated identity does not execute the works itself but provides technical assistance and manages the project.
According to Scotiabank, most of the investment was concentrated in 2018 (S/1.714 billion or US$520.8 million) and in the first half of 2019, but its contribution was small on an annual basis.
"COPAL estimates that Lima 2019-related works have generated nearly 517,000 jobs between 2016 and 2019. Likewise, through the MYPEru purchase program, acquisitions —worth S/23 million (about US$6.98 million)— were made from 302 micro and small-sized companies in the textile, metal-mechanic, and building finishes sectors," the bank stated.
(END) CNA/RMB/MVB
Published: 7/2/2019