PROINVERSIÓN: 2023 WOULD BE A RECORD YEAR OF AWARDS THROUGH WORKS FOR TAXES
Lima, May 16, 2023.- The Private Investment Promotion Agency (PROINVERSIÓN) organized the event "WORKS THAT UNITE US: 15 years of Works for Taxes in Peru", in which was recognized the effort and commitment of public and private entities in the promotion of this important investment mechanism that celebrates 15 years of creation.
At the event, the executive director of PROINVERSIÓN José Salardi, announced that 2023 is shaping up to be a year in which a record number of investment project awards could be achieved through the Works for Taxes mechanism.
Although the initial estimate for this year is that public entities will award 19 projects for approximately S / 620 million, the head of PROINVERSIÓN foresees – with high probability – that this goal can be exceeded by a long time taking into account the large projects in the portfolio. Among the major projects in the portfolio are: the Improvement and expansion of the drinking water and sewerage systems of Pucusana (S/ 276 million), the COAR of Chalhuanca in Apurimac (S/ 77 million), the COAR of Cajamarca (S/ 79 million), the Santa Rosa Bridge (S/ 348 million) and the Improvement and Expansion of the Services of the Regional Hospital of Huaraz, private initiative close to having viability in Invierte.pe (for an approximate amount of S / 1,000 million).
It should be remembered that the current award record dates from 2016 when public entities awarded 49 projects for S / 1,086 million.
Also, in the framework of the event, the Minister of Economy and Finance, Alex Contreras, announced the creation of the Executive Board of Works for Taxes in order to strengthen credibility and confidence in the Works for Taxes mechanism and the execution of public investment projects and IOARRs (Optimization Investments, Marginal Expansion, of Rehabilitation and Replenishment) aligned with the Punche Peru Plan. The objective is to improve the technical quality of the projects executed, accelerate the award processes, encourage the creation of consortia and packages with a territorial and multiannual approach, the issuance of certificates on time and a continuous monitoring of the unlocking of the projects in execution.
At today's ceremony, PROINVERSIÓN recognized public and private entities in the following categories:
- Impact project in rural areas and native communities: (i) project Improvement of Educational Services of the Padre Abad Institute of Public Higher Technological Education, Padre Abad province, department of Ucayali, executed by GORE Ucayali and financed by Aguaytía Energy of Peru; and (ii) Installation of drinking water and rural sanitation services in the sectors of Nueva Cala Cala, Aspaex, Aspaex-I and Aspaex-III (Los Caribeños), Centro Poblado de Yacango, district of Torata, provincial of Mariscal Nieto, department of Moquegua, executed by the Ministry of Housing, Construction and Sanitation, and financed by Southern Peru Copper Corporation.
- Public entities with the highest amount committed in Works for Taxes: MINEDU, GORE Ancash, District Municipality of San Marcos and the National University of San Agustín.
- Company with the largest number of projects and amount awarded through works for taxes: Compañía Minera Antamina S.A.
- Public entity with greater efficiency in the technical-administrative procedures of works for taxes: Ministry of Transport and Communications (MTC)
- Private Association that supports and promotes works for taxes: ALOXI
The executive director of PROINVERSIÓN stressed that to date 149 companies have been financing projects through the Works for Taxes mechanism. "Although it is a remarkable advance, there are still spaces to grow and involve more companies," he said. He added that considering the 500 largest companies in Peru – identified by América Economía in 2021 – only 14% of them are financing projects through Works for Taxes, so he urged these companies to be part of the improvement of the quality of life of Peruvians through this modality of public investment.
He said that there are currently 371 Works for Taxes projects in promotion, for an amount exceeding S / 13,000 million. Of this total, 35 projects have already been prioritized by public entities for S / 502 million; 12 are in previous acts for S / 230 million; and 12 initiatives projects, with an estimated investment of S / 317 million, already have the previous reports in search of private companies that can finance their execution. The remaining projects (312) for S / 12,008 million are to be prioritized, in idea or formulation.
The event organized by PROINVERSIÓN was attended by Alex Contreras, Minister of Economy and Finance; Rohel Sánchez, governor of the Regional Government of Arequipa; Alfonso Bustamante, president of CONFIEP; Alberto Ñecco, Deputy Minister of Transport of the Ministry of Transport and Communications; Ivan Lucich, Deputy Minister of Sanitation, Ministry of Housing, Construction and Sanitation; Fátima Soraya Altabás, Deputy Minister of Institutional Management of the Ministry of Education; José Salardi, executive director of PROINVERSIÓN; among other representatives of the public and private sector.
It is worth mentioning that PROINVERSIÓN, as a State entity, provides free advice and technical assistance to national government entities, regional governments, local governments and public universities, articulating them with private companies interested in financing these projects.
Source: Press Release - PROINVERSIÓN