250 THOUSAND HECTARES ARE EXPECTED TO BE INCORPORATED THROUGH PUBLIC-PRIVATE PARTNERSHIPS

Lima, May 6, 2024.- A new boost to agriculture. The Private Investment Promotion Agency (PROINVERSIÓN) identified a potential of 250 thousand hectares of land for cultivation that could be developed through the Public-Private Partnership modality, with an estimated investment of more than US$ 4.3 billion.

These four projects would double to 500 thousand hectares the amount of land devoted to modern agriculture of traditional and non-traditional products for export, i.e., Peru could become the agro-export hub of the world since the incorporation of some 250 thousand hectares would double agribusiness exports from US$ 10 billion (2023) to more than US$ 22 billion and increase direct and indirect employment by 1.1 million at the national level.

The executive director of PROINVERSION, José Salardi, confirmed that Peru could become the agribusiness hub of the world, guaranteeing the country’s food security and boosting the economy.

He specified that “these projects will also allow the development of productive clusters, articulating small and medium-sized enterprises with large agribusiness companies at the regional and national level,” he said.

It should be considered that the country has an agricultural area of 11.6 million hectares, of which 250 thousand are used in modern agriculture of traditional and non-traditional export-oriented products.

Sustainable Portfolio

According to PROINVERSIÓN, the increase in hectares for modern agriculture will be supported by four projects called Chavimochic III Stage (111 thousand hectares), Majes Siguas II Stage (38.5 thousand hectares), Chinecas (83 thousand hectares) and Chancay – Lambayeque (20 thousand hectares).

Currently, the irrigation project “Comprehensive Water System of the Chancay Valley – Lambayeque” (Chancay – Lambayeque) is in the process of being structured by PROINVERSIÓN.

In the case of Chinecas, a specialized consulting firm is conducting studies to define the investment mechanism (it could be a PPP) and, in the case of Chavimochic III Stage, the agency is about to sign an inter-institutional cooperation agreement with the Regional Government of La Libertad for the development of a new concession, which will involve the financial and legal structuring, as well as the preparation of the project’s engineering studies.

Regarding Majes Siguas II Stage, the agency’s expectation is that the project will be developed through a Public-Private Partnership to give it sustainability and development towards a modern and high-productivity agriculture.

The event was also attended by the Congresswoman of the Republic, Nilza Chacón; the Director of Decentralized Investments of PROINVERSIÓN, Denisse Miralles; the provincial mayors of Huaraz and Yungay, David Rosales and José Romero, respectively, among other officials.

Elaboration: PROINVERSIÓN

Long-term

On the other hand, PROINVERSIÓN also identified another 168 thousand hectares of land that could be incorporated into modern agriculture with the development of the Olmos II Stage (50 thousand hectares), Pampas Verdes (50 thousand hectares), Majes I Optimization (8 thousand hectares), Alto Piura (20 thousand hectares) and Chira – Piura (40 thousand hectares) projects.

In this case, the potential is more long-term but will result in the productive development of modern national agribusiness.

Source: Press Release – PROINVERSIÓN