Peru's Reconstruction with Changes: Final plan anticipates investment of US$7.9 billion

LIMA,PERÚ-MARZO 20. Trabajos de descolmatación del río Rímac. Foto: ANDINA/Vidal Tarqui

LIMA,PERÚ-MARZO 20. Trabajos de descolmatación del río Rímac. Foto: ANDINA/Vidal Tarqui

18:11 | Lima, Sep. 6.

The Reconstruction with Changes Plan will see an investment of S/25.655 billion (about US$7.923 billion) —accounting for 11% of regional economies' GDP and 4% of national GDP— as well as the creation of more than 150,000 jobs in 2018.

Speaking at a press conference, reconstruction process Head Pablo de la Flor informed the final plan budget shows a 10% increase from the August budget proposal of S/23.538 billion (about US$7.25 billion).

The plan includes three lines of action. The first one is related to restoration and reconstruction of Coastal El Niño stricken infrastructure, which entails an investment of S/19.759 billion (about US$6.102 billion) and makes up 77% of the budgeted amount.

As is known, Peru was hit hard by Coastal El Niño phenomenon in the January-March period. The weather event was characterized by heavy rains, landslides and floods, which destroyed infrastructure and crops, leaving many citizens homeless.  

Another factor to be considered is prevention, for which the Government budgeted S/5.446 billion (US$1.681 billion), accounting for 21% of the total.

In third place, the plan seeks to boost capabilities of public entities in charge of the Reconstruction with Changes investment portfolio.

Investment by sectors

For instance, the transport sector will receive S/9.760 billion (about US$3.014 billion) to restore most of the national road network and bridges in the ravaged northern region.

Education, on the other hand, will benefit from a S/2.670 billion (about US$824 million) boost.

The plan intends to mobilize slightly more than S/2 billion (about US$617 million) for sanitation and S/1.480 billion (US$457 million) for roads and sidewalks.

As per health, the Government will invest S/1.345 billion (about US$415 million), and a similar amount will be spent on agriculture.

The housing sector will receive S/1.114 billion (around US$344 million).

Finally, some S/400 million (about US$123 million) will be spent on capacity-building.


Published: 9/6/2017
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