REGIONS, MUNICIPALITIES AND UNIVERSITIES NOW HAVE MORE SPACE TO INVEST IN WORKS FOR TAXES

Lima, July 17, 2023.- Public entities together had S/ 16,237 million for this private-public investment mechanism in 2022, for this year this amount increased.

The Private Investment Promotion Agency (ProInversión) reported that the resources of regional governments (Gores), local governments and public universities to implement projects through the Works for Taxes (OxI) mechanism total S/ 25,613 million this 2023.

This amount represents an increase of 58% over the amount set in 2022 (S/16,237 million). According to ProInversión, the increase has been established by S.D No. 138-2023-EF, which approves the maximum annual capacity ceilings for regional governments (GOREs), local governments and public universities to issue Regional and Local Public Investment - Public Treasury Certificates (CIPRL).

By group

Based on the adjustment proposed by the SD of the Ministry of Economy and Finance (MEF), the budget increases for OxI between GOREs, local governments and public universities differ.

The most pronounced was at the level of public universities. By the MEF measure, these institutions now have S/ 1,775 million, an increase of 75% compared to the S/ 1,017 million established in 2022.

It is followed by the GOREs, with an increase of 72% compared to the ceiling established in 2022 (S/ 4,119 million). They now have S/ 7,094 million for the execution of public-private investment modality.

For local governments, they had S/ 11,101 million in 2022 for OxI. Now, its portfolio totals S/ 16,745 million, a growth of 51% compared to the previous year.

“The substantial increase in the annual capacity ceiling for the issuance of CIPRL certificates from regional governments, local governments and public universities will allow these entities to develop more high-impact projects and interventions through Works for Taxes, contributing to closing infrastructure and public services gaps in a decentralized manner,” said José Salardi, Executive Director of ProInversión.

By department

According to ProInversión, Cusco’s public entities (GOREs, local governments and public universities) have the most resources for OxI. In total, they have S/ 6,563 million to execute such projects, an increase of 55% over the amount they had in 2022 (S/ 4,230 million).

In second place is Ancash, with a ceiling of S/ 3,748 million, a growth of 42% compared to the figure of S/ 2,667 million in 2022.

The podium is closed by the public entities of Arequipa. In the southern region, they have S/ 2,943 million to execute OxI, an increase of 47% compared to what was set in 2022 (S/ 1,996 million).

Source: Gestión