NEWS
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 A GUIDE TO DRAW INVESTMENT IN ENERGY PROJECTS IS PRESENTED 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 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

PROINVERSIÓN EXPECTS TO AWARD PROJECTS AMOUNTING TO US$ 2.5 BILLION THIS YEAR

Lima, January 21, 2021.- This year the Private Investment Promotion Agency (PROINVERSIÓN) expects to award around 11 PPP projects and Projects in Assets for an estimated investment amount of US$ 2.5 billion and to obtain the Declaration of Interest of other nine projects under the form of private initiative, which will amount to an investment of approximately US$ 3.7 billion.

This was announced by PROINVERSIÓN’s Executive Director, Rafael Ugaz, during the webinar “Investment Opportunities in PPP and Works for Taxes, and Investment Promotion Mechanisms,” aimed at investment funds, consulting firms, banks, construction companies and operators in Latin America related to the development of infrastructure and energy projects.

The representative of PROINVERSIÓN stated that the government is committed to promoting PPPs, which is key for the economic recovery and the reduction of gaps.

“In Peru, the promotion of PPPs is a State policy. There is not only a strong legal framework, but also a system made up of different entities with specific roles, and a strong mature project portfolio,” stated Ugaz.

He also pointed out that the project portfolio’s status and the feasibility of achieving these milestones have been reviewed in coordination with the different entities participating in the private investment promotion system. In that sense, “we are of the opinion that this year will be the best of the last three years in terms of awarding of contracts, which will boost the economy in the following years,” he emphasized.

In the event, 53 projects amounting to S/ 659 million with a high level of progress were presented, prioritized by public entities for their implementation through Works for Taxes, which seek financing from private companies.

AWARDS FOR 2021

As for the award of contracts this year, during the virtual event it was specified that in the first semester three projects in energy and hydrocarbons for approximately US$ 410 million have been awarded. These are the Natural Gas Massification projects, 500 kV Transmission Line of Piura Nueva-Frontera Substation, Puerto Maldonado-Iberia Transmission Line and Valle Chira Substation.

As for the transportation sector, the award of Huancayo-Huancavelica Railway (US$ 260 million) is expected. The award of Puerto Maldonado Wastewater Treatment Plant (US $ 55 million) in the sanitation sector and Ancón Industrial Park (US $ 750 million) in the productive-logistics sector is expected.

Likewise, for the second semester the award of key projects such as Head Works and Conduction Works for the Drinking Water Supply in Lima (US$ 480 million) is expected: Radio Spectrum Bands (US$ 291 million) and two new Essalud hospitals in Piura and Chimbote (US$ 286 million).

In the current situation, the social infrastructure projects are considered especially urgent. Thus, various private initiatives with investments estimated at US$ 611 million are also expected to be declared of interest so as to conduct educational infrastructure projects in different places of the country in favor of more than 80 thousand students.

Furthermore, the award of Works for Taxes projects, which comprise 417 projects amounting to more than S/ 5.4 billion, has accelerated due to the hard work deployed by public entities at the national level, with decentralized technical advice from PROINVERSIÓN.

In this regard, it is expected that, in 2021, public entities will award 49 projects amounting to S/ 487 million through Works for Taxes.

PROMOTION TOOLS

In turn, PROINVERSIÓN’s Director of Investor Services, Alejandro Prieto, explained the scope and benefits of the entity’s private investment promotion tools, such as the VAT Early Recovery Regime, Tax Reimbursement, and Legal Stability Agreements.

He emphasized that, between 2007 and 2020, 208 projects have been accepted under the VAT Early Recovery Regime, which represents an investment commitment of US$ 49.950 million, mainly in the electricity sector.

Finally, he emphasized that Legal Stability Agreements have been entered into for more than US$ 29 billion, mainly with national investors
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