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  3. A GUIDE TO DRAW INVESTMENT IN ENERGY PROJECTS IS PRESENTED
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PERU APPROVES EXPANSION OF LAS BAMBAS COPPER MINE PERU APPROVES EXPANSION OF LAS BAMBAS COPPER MINE HOSPITAL PROJECTS OF THE SOCIAL HEALTH INSURANCE OF PERU (ESSALUD) CAPTURE THE INTEREST OF INVESTORS STREAMLINE PROCESSES TO APPROVE ENVIRONMENTAL IMPACT STUDIES IN INVESTMENT PROJECTS AGREEMENT BETWEEN PERU AND JAPAN TO AVOID DOUBLE TAXATION ENTERED INTO FORCE: WHAT DOES THIS IMPLY? SINGAPORE BECOMES THE FIRST PARTNER OF THE PACIFIC ALLIANCE CASTILLO SAYS THAT THE PERUVIAN GOVERNMENT IS COMMITTED TO HONORING OBLIGATIONS TO JOIN THE OECD SUSTAINABILITY OF PUBLIC FINANCES REQUIRES MORE THAN EVER PRIVATE INVESTMENT PUBLIC INVESTMENT WILL CONTRIBUTE TO THE ADVANCEMENT OF THE ECONOMY THIS YEAR CASTILLO REITERATES HIS INVITATION TO BUSINESSMEN TO INVEST IN PERU IN DAVOS 2022 JULIO VELARDE IS ELECTED AS CENTRAL BANKER OF THE AMERICAS 2022 BY FINANCIAL TIMES PPP PROJECT PORTFOLIO WAS PRESENTED TO CANADIAN INVESTORS THE PROMOTION OF PRIVATE INVESTMENT IN THE COUNTRY IS URGENT PROINVERSION PROMOTES PPP PROJECTS FOR US$ 6,300 MILLION TO INVESTORS FROM SINGAPORE, KOREA AND AUST INVESTMENT IN INDUSTRIAL SECTOR WILL GROW 26.9% THIS YEAR IN PERU THE PORT OF CHANCAY WILL HAVE A GREAT REGIONAL IMPACT AND WILL BE A HUB OF THE SOUTH PACIFIC MOODY'S: EXPORT SECTOR WILL BE THE ENGINE OF REACTIVATION OF THE PERUVIAN ECONOMY PERU RECORDED SURPLUS OF US$ 3,986 MILLION MEF RAISES PERU'S GROWTH PROJECTION TO 13% JOINING THE OECD IS A POLITICAL WILL OF THE STATE MEF AND ECLAC COORDINATE ON LITHIUM INVESTMENTS NET INTERNATIONAL RESERVES REACH US$ 75,358 MILLION AS OF OCTOBER 27 GOVERNMENT PLACED BONDS AMOUNTING US$ 4,000 MILLION IN THE INTERNATIONAL MARKET BCR: PUBLIC INVESTMENT WILL GROW 20% THIS YEAR AND 4.5% IN 2022 PERU ANNOUNCES PUBLIC TENDER OF TWO ELECTRICAL PROJECTS IN THE NORTH OF THE COUNTRY THROUGH PPP CASTILLO RATIFIES PERU'S INTEREST IN JOINING THE OECD CONFIRMED: JULIO VELARDE WILL REMAIN IN FRONT OF THE CENTRAL RESERVE BANK (BCR) FOR FIVE MORE YEARS PERSPECTIVES ON PERU'S GDP ARE FAVORABLE GLOBAL INVESTORS INTERESTED IN INFRASTRUCTURE WORKS IN PERU BCR: PRIVATE INVESTMENT WILL REACH US $ 41,700 MILLION THIS YEAR PROINVERSION PROMOTES TO INVESTORS ESSALUD HOSPITAL PROJECTS THE GOVERNMENT WILL ACCELERATE 52 INVESTMENT PROJECTS FOR S/ 114,000 MILLION The state will promote large Infrastructure Projects Peru in the Pacific Alliance San Juan de Marcona Port Project will be awarded next year Peru would lead regional growth There are 13 interested companies in participating in the tender for the Ancon Industrial Park Peru attracts great investments Gore Ancash promotes work for taxes projects for more than S/. 600 million Minister Francke met with the President of BCRP to coordinate economic and monetary policies President Pedro Castillo swears in his first Cabinet of Ministers Peru is on the right track in Fiscal Matters LT Puerto Maldonado-Iberia and Chira Valley Substation will boost Madre de Dios and Piura Arequipa: MEF approves addendum 13 to Majes Siguas II Project Agreement ratification gets the Go-ahead Mining exports already exceed Pre-pandemic levels MEF announces the unlock of the Majes Siguas Project Peru´s economic recovery is the highest in the region Foreign investment in Latin America will reach prepandemic levels in 2023 CCL: Peru has 921 investment megaprojects We seek to sign our first contract in Ports IMF: Peru Libre and Fuerza Popular in favor of maintaining a Macroeconomic soundness policy Agri Exporters seek to position Peruvian Organic Coffee in South Korea The rate of awarding of projects under the form of works for taxes returned the level prior to the p FITCH considers that Peruvian Companies maintain proper liquidity positions Mining investment totaled US$ 1,298 millon More than 1,561 new rural towns will have 4G mobile telephone and internet services LA LIBERTAD: THE MODERNIZATION OF THE PORT OF SALAVERRY IS 80% COMPLETE TOQUEPALA IS TAKING THE FIRST STEP TO ENTER 5G FOREIGN-OWNED COMPANY REINVESTMENT AMOUNTED TO US$ 2,310 MILLION BCR: RECOVERY OF PRIVATE INVESTMENT GDP TO GROW 34.4% IN THE SECOND QUARTER MOODY'S AGENCY ASSURES PERU'S A3 RATING US$ 340 MILLION IN LOANS FOR ROAD INFRASTRUCTURE PROINVERSIÓN CALLS FOR INTERNATIONAL BIDDING FOR PUBLIC TELECOMMUNICATIONS SERVICES ADDENDUM TO THE MUELLE NORTE CONCESSION WOULD ALLOW INVESTMENT OF US$ 1,050 MILLION FROM APMT. AMERICAN LITHIUM WILL PRIORITIZE LITHIUM PROJECT OVER URANIUM IN PUNO MEF KEPT 10% PROJECTED GROWTH FOR PERUVIAN ECONOMY FOR THIS YEAR RECORD IN THE EXECUTION OF PUBLIC INVESTMENT EUROPEAN UNION (EU) WILL SUPPORT TRANSPORTATION IMPROVEMENT COPPER NEARS 10-YEAR HIGH NATURAL RESOURCES MUST BE ENHANCED MONETARY FUND PROPOSES TO STRENGTHEN COUNTRIES' FISCAL RESPONSES TO THE CRISIS PROINVERSIÓN WILL RECEIVE BIDS FROM THE PRIVATE SECTOR FOR FOUR SANITATION PROJECTS SOUTHERN MINING CLUSTER WOULD ATTRACT US$ 14 BILLION IN INVESTMENTS BRITISH EMBASSY PRESENTS THREE CLIMATE ACTION PROJECTS TO BE IMPLEMENTED IN PERU PUBLIC INVESTMENT MARKS A RECORD RESULT IN THE FIRST QUARTER WB IMPROVES PERUVIAN GROWTH FORECAST FOR 2021 THE NEW CENTRAL HIGHWAY WILL BE CONNECTED WITH THE LONGITUDINAL DE LA SIERRA HIGHWAY PERU WILL HAVE THE LARGEST GDP EXPANSION IN SOUTH AMERICA THIS YEAR PERU RANKS SIXTH IN SOUTH AMERICA AS THE "MOST PREPARED" FOR STATE-OF-THE-ART TECHNOLOGIES LITHIUM ALSO FOUND IN CUSCO ANCON INDUSTRIAL PARK WILL HAVE 1,338 HECTARES FOR INDUSTRIAL, COMMERCIAL AND LOGISTICAL DEVELOPMENT PROJECTS FOR MORE THAN US$ 6 BILLION DRAW THE ATTENTION OF SPANISH INVESTORS THE GOVERNMENT PLACED BONDS AMOUNTING TO US$ 4,000 MILLION IN THE INTERNATIONAL MARKET PUBLIC INVESTMENT REACHED AN EXECUTION RECORD IN FEBRUARY CLARO AND ENTEL WILL DEPLOY 5G TECHNOLOGY FOR FIXED WIRELESS INTERNET COLOMBIA BETS ON INFRASTRUCTURE AND ENERGY PROJECTS AMOUNTING TO MORE THAN US$6 BILLION IN PERU CHINA WILL FURTHER ITS INVESTMENT IN PERU IMF INCREASES THE FORECASTED GDP GROWTH TO 9% IN 2021 MINING INVESTMENTS EXCEEDED EXPECTATIONS PORT MODERNIZATION INCLUDES NINE PROJECTS PROINVERSIÓN PROMOTES INFRASTRUCTURE PROJECTS TO EUROPEAN AND NORTH AMERICAN INVESTORS MEF MAINTAINS A 10% GROWTH RATE FOR 2021 PROINVERSIÓN HAS JOINED THE WORLD ASSOCIATION OF PPP UNITS AND PROFESSIONALS ELECTRICITY SECTOR PLANS AMOUNTING TO US$ 6,025 MILLION PROINVERSIÓN EXPECTS TO AWARD PROJECTS AMOUNTING TO US$ 2.5 BILLION THIS YEAR PROINVERSIÓN CALLS AN INTERNATIONAL BIDDING FOR THE ANCÓN INDUSTRIAL PARK PROJECT PERU WILL LEAD INVESTMENT IN THE NEXT THREE YEARS PROINVERSIÓN CALLS AN INTERNATIONAL COMPETITIVE BIDDING FOR THE ANCÓN INDUSTRIAL PARK PROJECT THE MTC WILL PROMOTE INVESTMENTS AMOUNTING S/ 1580 MILLION IN DIGITAL CONNECTIVITY PRIVATE INVESTMENT WILL GROW 17.5% THANKS TO MORE THAN 30 PROJECTS WB: PERUVIAN ECONOMY WILL GROW 7.6% IN 2021 PERU IS ONE OF THE COUNTRIES WITH THE GREATEST MACROECONOMIC STRENGTH

A GUIDE TO DRAW INVESTMENT IN ENERGY PROJECTS IS PRESENTED

Peru is a more than attractive country for investment in the hydrocarbon sector. Its sustained growth of 4.5% in the 2010-2019 period, in addition to establishing it as one of the fastest growing economies in the region, has also generated an important increase in its demand for electricity, which increased at an average rate of 6% per year in the last ten years.

However, the year 2020 has been particularly difficult. The impact of the pandemic in the sector was reflected, as in many others, in significant losses throughout the supply chain.

At the end of August 2020, for example, the sector generated US$ 296 million of revenue for the Government; of which US$ 281 million were related to license contracts and US$ 15 million to service contracts. This amount was lower by 46.4% than the amount registered in August 2019, which was mainly caused by the fall in international oil prices and lower demand, as a result of the pandemic. As for the “royalty” and “excess royalty,” as of August 2020, S/. 660 million were transferred to the regions of Ucayali, Piura, Huánuco, Tumbes, Loreto and Cusco; approximately 40% less than the amount transferred in August 2019.

Despite the fact that in 2020 the national economy registered a contraction, the IMF forecasts a growth of 9% by 2021, the highest rate in South America. This is thanks to the tax and monetary policy applied by the country to contain and reverse the adverse effects generated by the pandemic. For future years, the outlook is also favorable.

This is a clear sign that hydrocarbons will continue to play a fundamental role in the economic development and competitiveness of the country. According to PERUPETRO estimates, the northern jungle has resources and reserves with the potential to generate a value of US$ 44,000 million for the country. However, it also notes that if these resources and reserves are not exploited in the next 20 years, they will remain underground without generating any revenue.

“The increasing demand for energy in Peru during the last twenty years caused by the development of mining and industrial projects, and the growth of its main cities, have allowed to better position oil, gas and electricity activities. I believe this scenario is going to evolve as the economy grows and new sources of energy are considered. For this reason, I invite investors to review the Guide and find out about the great opportunities the country has for long-term investments in the energy sector,” states David Warthon, Tax Partner of EY Peru.

This and other information of interest may be found in the “Investment Guide in Energy Projects in Peru for 2021/2022,” presented together with the Ministry of Foreign Affairs, the Ministry of Energy and Mines, PERUPETRO, ProInversión and the professional service firms EY Peru; in order to join public and private efforts to pursue a better and greater investment in our country in this important sector. The content may be accessed for free at https://www.gob.pe/institucion/rree/informes-publicaciones/1755224-peru-guide-to-investing-in-energy-projects-in-peru-2021-2022.

Likewise, the Guide has been prepared in English and seeks to provide relevant information for investors who are looking for energy projects worldwide, so it will be a valuable instrument to help make well-informed decisions for the development of projects of the entire supply chain in our country: exploration, exploitation, transport, distribution of natural gas, etc.

The publication includes a summary of the Peruvian political structure, macroeconomic profile, main indicators of economic development, business climate, business environment and its outlook for future years, geological potential, sector trends and hydrocarbon operations in the country. It also provides important information to help foreign investors understand the regulatory framework governing investment and, in particular, the legal, tax and regulatory requirements for the development of such activities in the country.

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