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  3. PROINVERSIÓN WILL AWARD 10 ELECTRICITY TRANSMISSION PROJECTS FOR US$ 1,100 MILLION IN 2023
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BALANCE 2024: TRANSPORT SECTOR LED AWARDS WITH THREE PROJECTS FOR US$4,366 MILLION PROINVERSIÓN AWARDED 21 ELECTRICAL PROJECTS FOR MORE THAN US$2.2 BILLION IN THE LAST 24 MONTHS WORKS FOR TAXES EXCEEDED S/ 4 BILLION THROUGH 124 AWARDS IN 2024 AWARD OF THE CHINCHA WASTEWATER TREATMENT PLANT IN THE FINAL STAGE ENGIE ENERGÍA PERÚ S.A. WAS AWARDED THREE ELECTRICAL PROJECTS THAT WILL BENEFIT ANCASH, JUNÍN AND UC MORE THAN US$660 MILLION OF PRIVATE INVESTMENT FACILITATED SPECIAL REGIME OF EARLY RECOVERY OF IGV PROINVERSIÓN REGISTERED PROGRESS IN THE PROCESS OF PERU 'S ACCESSION TO THE OECD DURING 2024 PROINVERSIÓN WINS THE 2024 BUSINESS CREATIVITY AWARD WITH AN INNOVATIVE PROGRAM IN WORKS FOR TAXES FIRST BUSINESS ROUNDTABLE FOR PROJECTS IN ASSETS ATTRACTS INTEREST FROM INVESTORS SANITATION PORTFOLIO WILL BENEFIT 7 MILLION INHABITANTS WITH AN INVESTMENT OF US$ 2.6 BILLION AWARDING OF WORKS FOR TAXES EXCEEDS S/ 3 BILLION SO FAR IN 2024 PROINVERSIÓN WILL AWARD THREE ELECTRICITY PROJECTS WORTH OVER US$ 100 MILLION IN DECEMBER NEW MARCONA PORT WILL BENEFIT 29 PROVINCES OF ICA, AYACUCHO, APURIMAC, AREQUIPA AND CUSCO EXECUTION OF THE PERIPHERAL RING ROAD BEGINS, A MEGAPROJECT THAT WILL BENEFIT 4.5 MILLION PEOPLE CHINCHA WWTP: INVESTORS HAVE UNTIL DECEMBER 30 TO SUBMIT EXPRESSIONS OF INTEREST WORKS FOR TAXES WOULD EXCEED S/ 3.5 BILLION IN AWARDS BETWEEN 2023 - 2024 PROINVERSIÓN WOULD AWARD PROJECTS FOR MORE THAN US$11 BILLION IN THE PERIOD 2023 - 2024 MORE THAN 6200 KILOMETERS OF THE NATIONAL ROAD NETWORK WILL RECEIVE OPERATION AND MAINTENANCE IN 11 SPAIN: PROINVERSIÓN PROMOTES PORTFOLIO OF 63 PROJECTS FOR MORE THAN US$ 15.6 BILLION EL ALGARROBO PROJECT WILL PRIORITIZE SOCIAL MANAGEMENT AND THE WATER SOLUTION IN FAVOR OF AGRICULTUR SEVEN WASTEWATER TREATMENT PROJECTS WORTH MORE THAN U$S 1.1 BILLION TO BE AWARDED IN 2025 ALUPAR PERÚ WAS AWARDED FIVE ELECTRICAL PROJECTS WITH AN ESTIMATED INVESTMENT OF US$ 441 MILLION PROINVERSIÓN OBTAINS THREE CERTIFICATIONS OF BEST PUBLIC MANAGEMENT PRACTICES PROINVERSIÓN AWARDS THE HUANCAYO - HUANCAVELICA RAILWAY MODERNIZATION PROJECT AWARD PORTFOLIO WILL EXCEED US$ 15.8 BILLION IN 2025 - 2026 PUBLIC-PRIVATE PARTNERSHIPS ARE KEY TO CLOSING GAPS IN SANITATION, EDUCATION AND HEALTH BETWEEN JANUARY AND AUGUST, 58 WORKS WERE AWARDED THROUGH WORKS FOR TAXES OF S/ 2,351 MILLION IN EIGHT MONTHS, PROINVERSIÓN AWARDED 12 PROJECTS WORTH FOR MORE THAN US$ 6 BILLION PROINVERSIÓN WILL PROMOTE THE MODERNIZATION OF THE TACNA-ARICA RAILWAY PROINVERSIÓN SHARES EXPERIENCE IN PUBLIC-PRIVATE PARTNERSHIPS WITH ECUADORIAN OFFICIALS PROINVERSIÓN PROMOTED THE FIRST OXI PROJECT OF THE MINISTRY OF DEFENSE FOR S/$49.8 MILLION PROINVERSIÓN WILL DECLARATE FOUR PRIVATE INITIATIVES OF INTEREST FOR US$ 527 MILLION BEFORE OF 2024 PROINVERSION WILL AWARD 12 ELECTRICITY PROJECTS FOR US$ 676 MILLION BETWEEN AUGUST AND DECEMBER 2024 IN SEPTEMBER, THE INITIATIVE TO IMPROVE WASTEWATER TREATMENT IN CHINCHA WILL BE DECLARED OF INTEREST OECD EVALUATES PERU ON RESPONSIBLE BUSINESS CONDUCT AS PART OF ACCESSION PROCESS PROINVERSIÓN STRENGTHENS WORK WITH MINISTRIES AND REGIONAL GOVERNMENTS TO DEVELOP PPP PROJECTS PROINVERSIÓN WILL PROMOTE THE MODERNIZATION OF 44 SCHOOLS IN LIMA AND CUSCO THROUGH PPP OPERATION AND MAINTENANCE OF THE VILLA EL SALVADOR EMERGENCY HOSPITAL INTERESTS NINE COMPANIES PROINVERSIÓN EXPECTS TO AWARD 17 PROJECTS FOR MORE THAN US$ 3 BILLION IN THE SECOND HALF OF 2024 PUBLIC ENTITIES WILL AWARD SOME 54 AWARDS THROUGH WORKS FOR TAXES (OXI) ÁNCASH: PROINVERSIÓN AWARDS MODERNIZATION OF THE HOSPITAL OF HUARAZ FOR MORE THAN S/ 1 BILLION PROINVERSIÓN AWARDED SIX PROJECTS FOR MORE THAN US$ 5 BILLION IN THE FIRST HALF OF 2024 PROINVERSIÓN AWARDED THREE ELECTRICITY PROJECTS FOR THE BENEFIT OF ICA AND AREQUIPA PROINVERSIÓN AND INEN PROMOTE THE CONSTRUCTION OF A PEDIATRIC ONCOLOGICAL TOWER FOR MORE THAN S/ 900 PROINVERSIÓN PROMOTES SIX PPP PROJECTS IN THE HEALTH SECTOR FOR US$ 860 MILLION CAJAMARCA HAS A POTENTIAL OF S/ 1.45 BILLION TO EXECUTE WORKS FOR TAXES PROINVERSIÓN WILL AWARD FOUR PROJECTS IN THE NEXT TWO MONTHS FOR MORE THAN US$ 1.7 BILLION PROINVERSIÓN STARTS STRUCTURING TWO BAND PROJECTS FOR 5G MOBILE SERVICES PROINVERSIÓN AND THE REGIONAL GOVERNMENT OF TACNA PRESENT 35 PROJECTS WORTH MORE THAN US$ 800 MLLS CONSORTIUM WILL START STUDY THAT WILL DEFINE THE INVESTMENT MECHANISM OF THE CHINECAS PROJECT PROINVERSIÓN: JUNÍN HAS MORE THAN S/ 1.3 BILLION TO CARRY OUT WORKS FOR TAXES PROINVERSIÓN INCORPORATES IN ITS PORTFOLIO THE EXPANSION OF BAYÓVAR PHOSPHATE FOR US$ 940 MILLION PROINVERSIÓN WILL PREPARE TECHNICAL STUDIES AND A NEW CONCESSION PROCESS FOR THE CHAVIMOCHIC PROJECT 250 THOUSAND HECTARES ARE EXPECTED TO BE INCORPORATED THROUGH PUBLIC-PRIVATE PARTNERSHIPS REGIONAL GOVERNMENTS HAVE MORE THAN S/ 16 BILLION FOR WORKS FOR TAXES LONDON: PROINVERSIÓN PRESENTED WATER AND SANITATION PORTFOLIO FOR MORE THAN US$ 1.8 BILLION PROINVERSIÓN PREQUALIFIED 5 BIDDERS FOR THE TENDER OF 3 ELECTRICITY PROJECTS FOR US$ 329 MILLION PROINVERSIÓN: THREE BIDDERS WILL COMPETE TO MODERNIZE THE HUANCAYO - HUANCAVELICA RAILWAY PROINVERSIÓN: ANCASH PROMOTES A PORTFOLIO OF 40 PROJECTS IDENTIFIED FOR MORE THAN S/ 5.6 BILLION PROINVERSIÓN IS ABOUT TO CONCLUDE THE TECHNICAL STUDY FOR THE CHIMBOTE PORT TERMINAL CONSORTIUM WILL START STUDY THAT WILL DEFINE THE INVESTMENT MECHANISM OF THE CHINECAS PROJECT THREE STAKEHOLDERS PRESENT CREDENTIALS TO MODERNIZE THE HUANCAYO - HUANCAVELICA RAILWAY PROINVERSIÓN PROMOTES PPP PORTFOLIO IN SANITATION FOR MORE THAN US$ 2.2 BILLION THE NEW MARCONA PORT WOULD BOOST INVESTMENTS OF MORE THAN US$ 15 BILLION IN THE SOUTH OF THE COUNTRY MTC COMMISSIONS PROINVERSIÓN A STUDY TO PROMOTE THE SUSTAINABLE BACK NETWORK MTC COMMISSIONS PROINVERSIÓN 20 ROAD AND TWO PORT PROJECTS FOR MORE THAN US$ 3.5 BILLION EIGHT BIDDERS PRESENT CREDENTIALS TO PREQUALIFY FOR THE LONGITUDINAL DE LA SIERRA HIGHWAY SECTION 4 USERS OF THE VILLA EL SALVADOR EMERGENCY HOSPITAL WILL RECEIVE QUALITY SERVICES PROINVERSIÓN INCORPORATES THE TRUJILLO AND CHEPÉN WWTP PROJECT TO THE PROMOTION PROCESS PROINVERSIÓN PROMOTES PERIPHERAL RING ROAD TO POTENTIAL INVESTORS IN EUROPE MINDEF WOULD ENTRUST PROINVERSIÓN WITH THE AWARD OF A SPACEPORT IN TALARA FOR MORE THAN S/ 1 BILLION PROINVERSIÓN CALLS FOR BIDS ON FOUR ELECTRICITY PROJECTS FOR US$ 137 MILLION PROINVERSIÓN PROMOTES THREE INVESTMENT ATTRACTION MECHANISMS TO STRENGTHEN CONFIDENCE IN PERU THE MINISTRY OF TRANSPORT AND COMMUNICATIONS ENTRUSTED PROINVERSIÓN WITH A NEW PORTFOLIO OF PPP PROJ PROINVERSIÓN: PPP PORTFOLIO IN HEALTH 2024-2025 AMOUNTS TO US$ 700 MILLION 1071 LEGAL STABILITY AGREEMENTS FOR US$ 16,000 MILLION HAVE BEEN SIGNED SINCE THEIR IMPLEMENTATION PROINVERSIÓN STARTED FOURTH UNIVERSITY EXTENSION COURSE IN PPP PROINVERSIÓN: 10 PROJECTS FOR US$ 433 MILLION ACCESSED TO THE SPECIAL REGIME FOR RERAIGV IN 2023 PUBLIC ENTITIES PLAN TO AWARD MORE THAN S/ 1,000 MILLION IN WORKS FOR TAXES IN 2024 PROINVERSIÓN OBTAINS ISO ANTI-CORRUPTION CERTIFICATION

PROINVERSIÓN WILL AWARD 10 ELECTRICITY TRANSMISSION PROJECTS FOR US$ 1,100 MILLION IN 2023

Lima, March 13, 2023.- The Private Investment Promotion Agency (PROINVERSIÓN) announced that in 2023 it will award 10 electricity projects for more than US$ 1,100 million to support the country's economic growth. These projects will benefit 10 million people in 10 departments in its area of influence.

After the awarding of the Ica - Poroma Link and Cáclic - Jaén Link ITC electricity projects last January (US$ 132 million), the following projects will be the Piura Nueva - Frontera transmission line (US$ 217 million), Huánuco-Tocache-Celendín-Trujillo Link and Celendín-Piura Link (US$ 611 million), and two groups comprising five (5) projects for US$ 164 million (see table Nº 1).

In addition, the Ministry of Energy and Mines (MINEM), within the framework of the 2023 - 2032 Transmission Plan, has entrusted PROINVERSIÓN with 18 electricity transmission projects that will require an investment of more than US$ 900 million, and whose awards are scheduled for 2024.

"The development of these electricity transmission projects will strengthen the National Electric Interconnected System (SEIN) and will allow to take energy from the production centers (generation plants) to the consumption centers (companies and families) in an efficient way (lower costs) and with service quality (without interruptions)", commented PROINVERSIÓN's director of Project Portfolio, Emerson Castro.

These investments will increase the reliability and capacity of the national electricity system, which today has almost 30,000 kilometers of transmission lines, of which 16,000 kilometers are high-voltage networks (including 3,500 kilometers of 500 kV lines), necessary to minimize electricity losses and bring low-cost energy to areas where cheap energy is less available.

From 2001 to 2022, PROINVERSIÓN has carried out 37 concession processes for electricity projects (generation and transmission) through Public-Private Partnerships (PPP), generating investment commitments of more than US$ 9,000 million; in the case of transmission lines, it has developed 32 processes, executing investments of more than US$ 3,800 million.

The greatest boost was given since 2006 after the enactment of Law 28832 "Efficient
Development of Electricity Generation", which implemented the Transmission Plan as a mechanism for planning transmission investments with a 10-year outlook and is binding for investment decisions made during its validity.

ATTRACTIVE PROJECTS

PROINVERSIÓN's 2023 - 2024 electricity transmission PPP projects in its portfolio are expected to continue to attract the interest of investors in line with what has been observed in the last six (6) years, where in each process an average of five (5) bidders submitted their technical and economic offers. This attractiveness would be due, among others, to the predictability of the Peruvian market for this type of investment, since the costs of investment, operation and maintenance in electricity transmission projects are recognized through tariff charges paid by SEIN users, eliminating the demand risk for investors participating in the bids.

Secondly, the concession terms, which are generally 30 years, and the fact that the execution risks (definitive technical studies, financing, easements, permits and licenses, environmental certifications, among others) are assumed by the investors.

Thirdly, the technical quality and predictability of the private investment promotion processes developed by PROINVERSIÓN and that the projects to be tendered come from their previous evaluation in the Transmission Plan, which is updated every two (2) years with a 10-year outlook by the System Economic Operation Committee (COES) and approved by MINEM, prior opinion of OSINERGMIN.

Fourth, but not least, concessionaires can enter into legal stability agreements with the State, reducing their financial risks.

All of the above, in a context of continuous growth of the Peruvian economy -which has advanced at an average rate of 4.5% in the period 2000 - 2022, according to BCRP- has made these projects very attractive for private investment. In this regard, a positive performance of the electricity PPP project portfolio is expected for 2023 and 2024.

Table 1: ELECTRICITY TRANSMISSION PROJECTS 2023

N° PROJECT AMOUNT (in millions of US$) AWARD
1-2 220 kV Ica - Poroma Link - 220 kV Cáclic - Jaén Link ITC 132 Awarded: I Quarter 2023
3

550 Kv Piura Nueva - Frontera Transmission Line

 217 III Quarter 20233
4-5 500 kV Huanuco - Tocache - Celendin - Trujillo Link & 500 kV Celendin - Piura Link. 611 III Quarter 2023
6-10 220 kV Belaunde Terry - Tarapoto Norte Link; 500 kV San José - Yarabamba Link; 220 kV Piura Nueva - Colán Link ITC; 220 kV Lambayeque Norte ITC Substation with division; Piura Este Substation. 163.5 III Quarter 2023
 

Source: Press Release - PROINVERSIÓN