Lima, July 21, 2021.- The Ministry of Economy and Finance (MEF) gave its favorable opinion to addendum 13 for Majes Siguas II. The document implies a total budget increase of US$ 104 million for the agro-industrial project to finance the technological change. In other words, it will increase from US$ 550 million to US$ 650 million.
The announcement, which was already predicted by some ministers, was confirmed last Monday (July 19) afternoon after a meeting between the regional governor Elmer Cáceres Llica, the former head of the MEF, Waldo Mendoza, the Minister of Agricultural Development and Irrigation, Federico Tenorio and the executive director of ProInversión, Rafael Ugaz.
The legal advisor of the Regional Government of Arequipa (GRA, for its acronym in Spanish), Augusto Palaco Toro, said that for the approval it was vital to have the sovereign guarantee for the US$ 104 million and “the capacity” of the GRA for the fine-tuning of Majes I that will be linked to the infrastructure of the second stage. The entity will make loans already approved by the Regional Council.
The file will now have to be reviewed by the Office of the Comptroller General. There is a 10-day review term. Palaco said that there may be observations. Finally, it will go to the Regional Council for discussion.
For Jose Luis Hancco, regional councilman, there was haste on the part of the MEF. He stated that there are several points that are unknown in the final text of the addendum, such as the loans that will be made to finance the fine-tuning of Majes I. He also stated that the Office of the Comptroller General can observe the addendum because the increases to the project are higher than the 15% allowed for any project. He criticized that to date the councilmen do not know the implications of the document. Palaco said that with the final approved text they will be able to inform the councilmen about the addendum.