PROINVERSIÓN MANAGED AND AWARDED 103 PROJECTS IN ASSETS FOR MORE THAN US$ 7,500 MILLION
Lima - May 29, 2023.- The Private Investment Promotion Agency (PROINVERSIÓN) has managed and awarded 103 projects under the Project in Assets modality, with an estimated transaction and investment amount of US$ 7,502 million. These correspond to projects with contractual modalities of sale of assets, real estate development, transfers, usufruct, financing, among others, carried out in the period 2002 - 2023.
Among the sectors that have benefited most from this investment modality are communications, with 25 projects awarded for an aggregate amount of transactions and estimated investment of US$ 1,753 million; mining with 17 projects awarded for a total amount of US$ 4,281 million; agriculture with 13 projects awarded for US$ 33 million; real estate with 10 projects awarded for US$ 261 million; and electricity with 9 projects awarded for US$ 553 million (see Annex).
Projects in Assets is a modality of public-private investment that is carried out on assets owned by public entities, that is, the National Government, regional governments or local governments, or another public entity authorized by law. The asset can be movable or immovable, tangible or intangible. The objective is that the project is of public utility, that means, that it benefits the population.
Among the most important awards made by the entity through this modality are in mining: Las Bambas, Magistral, La Granja and Michiquillay; as well as 25 telecommunications projects where the majority correspond to public tenders for broadband installation projects for integral connectivity and social development of the various regions of the country.
With respect to contractual modalities, of the 103 projects awarded, the 55 asset sale contracts stand out, representing US$ 994 million in transactions; also, 25 financing contracts with a number of transactions and investments of US$ 1753 million, 14 transfer contracts for US$ 4112 million, and another 9 projects with other contractual modalities with an amount of US$ 643 million.
In relation to the sphere of influence of the 103 projects awarded under this modality, the Lima region is in first place with 26 projects and an aggregate amount of transaction and estimated investment of US$ 742 million. Therefore, it is followed by those of national scope with a total of 24 projects with an aggregate amount of US$ 636 million. The other 53 projects awarded have a decentralized sphere of influence focused particularly on a specific region. Thus, for example, 7 projects have been awarded in Ancash for an aggregate amount of US$ 561 million, 7 projects in La Libertad with an aggregate amount of US$ 168 million, 6 projects in Piura with an aggregate amount of US$ 43 million, 3 projects in Cajamarca with an aggregate amount of US$ 3508 million, among others.
On the other hand, the titular entities that have commissioned PROINVERSIÓN to develop processes through Projects in Assets are the Ministry of Energy and Mines with 29 projects with a total transaction and investment amount of US$ 4,848 million; the National Telecommunications Program – Pronatel (successor to the Telecommunications Investment Fund – Fitel) with 19 projects with a total amount of US$ 1240 million, and the Ministry of Agrarian Development and Irrigation with 12 projects with an aggregate amount of US$ 35 million. Other entities that stand out are the National Fund for the Financing of State Business Activity and the Ministry of Transport and Communications 9 and 6 projects awarded with an estimated amount of US$ 252 million and US$ 512 million, respectively.
Projects in Assets have particular characteristics: They do not commit public resources; do not transfer risks to the public entity; The development of Projects in Assets occurs through a more simplified process than the Public-Private Partnership modality.
Through the modality of Projects in Assets, projects can be developed in sectors such as mining, telecommunications, real estate and several others.
Source: Press Release - PROINVERSIÓN