NEWS
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 EXPECTS TO AWARD EIGHT ELECTRICITY PROJECTS FOR US$ 700 MLL IN THE FIRST HALF OF 2024 WORKING WITH OTHER STATE ENTITIES TO ENSURE SUSTAINABLE PPP PROJECTS THE AGREEMENT UNITED AGAINST ANEMIA AND CHILD MALNUTRITION THROUGH WORKS-FOR-TAXES WAS SIGNED PROINVERSIÓN IS THE NATIONAL CONTACT POINT FOR THE RESPONSIBLE BUSINESS CONDUCT OF THE OECD PROINVERSIÓN: MINDEF PLANS TO EXECUTE 12 PROJECTS FOR MORE THAN S/ 780 MILLION THROUGH OXI PUNO BETS ON PUBLIC-PRIVATE INVESTMENT AND PRESENTS 23 PROJECTS FOR MORE THAN S/ 4,000 MILLION PROINVERSIÓN: VIETTEL PERU WILL EXTEND 4G MOBILE SERVICES TO MORE THAN 3,800 RURAL LOCATIONS PROINVERSIÓN PROMOTES ANCON INDUSTRIAL PARK PROJECT IN BEIJING WORKS FOR TAXES: GORE MOQUEGUA AND SOUTHERN PERÚ WILL IMPROVE SCHOOL WITH S/ 76.8 MILLION THIS MONTH MTC WILL CALL FOR TENDER FOR THE SANTA ROSA BRIDGE THAT WILL CONNECT TO THE JORGE CHÁVEZ MODERNIZATION OF THE HIPÓLITO UNANUE HOSPITAL TO BE DECLARED VIABLE IN THE FIRST QUARTER OF 2024 PROINVERSIÓN EXPECTS TO AWARD EIGHT PPP PROJECTS FOR UP TO US$ 5,700 MILLION. IN THE NEXT SIX MONTHS PROINVERSIÓN WILL AWARD TWO ELECTRICITY PROJECTS FOR ABOUT US$ 800 MILLION IN OCTOBER PROINVERSIÓN SIGNS AGREEMENTS TO PROMOTE PROJECTS IN ASSETS IN AREQUIPA RESOURCES FROM GORES, LOCAL GOVERNMENTS AND PUBLIC UNIVERSITIES FOR OXI GROW TO MORE THAN S/ 25,000 PROINVERSIÓN STRENGTHENS ACTIONS TO ATTRACT INVESTMENT ABROAD FOR PPP PROJECTS IN PERU 10 MTC PROJECTS PER S/ 2,000 MILLIONS ARE READY TO BE FINANCED BY COMPANIES THROUGH OXI PROINVERSIÓN ORGANIZES ROADSHOWS IN MEXICO AND CHILE TO ATTRACT INVESTORS TO PPP PROJECTS PROINVERSIÓN ACHIEVED OVER US$ 1,000 MILLION INVESTMENT IN SIX AWARDS IN I SEMESTER 2023 VIETTEL PERU WILL INVEST AROUND US$ 600 MILLION TO CONNECT RURAL AREAS WITH 4G SERVICES PROINVERSIÓN MANAGED AND AWARDED 103 PROJECTS IN ASSETS FOR MORE THAN US$ 7,500 MILLION METRO LINE 1 WOULD PROPOSE TO INCREASE DAILY TRANSPORT CAPACITY TO ONE MILLION PASSENGERS LIMA PROVINCES REGION HAS S / 370 MILLION TO EXECUTE INVESTMENTS VIA WORKS FOR TAXES PROINVERSIÓN: 2023 WOULD BE A RECORD YEAR OF AWARDS THROUGH WORKS FOR TAXES PORTFOLIO IN PROMOTION THROUGH OXI CONSISTS OF 371 INVESTMENTS FOR MORE THAN S/ 13,000 MILLION PROINVERSIÓN WILL AWARD THE CONTRACT FOR THE ESSALUD HOSPITALS IN THE SECOND QUARTER OF 2023 CAPITAL EXPENDITURE IN THE LA GRANJA MINING PROJECT GROWS TO MORE THAN US$ 2,400 MILLION PROINVERSIÓN WILL AWARD 10 ELECTRICITY TRANSMISSION PROJECTS FOR US$ 1,100 MILLION IN 2023 PPP INVESTMENTS IN PORTS WILL EXCEED US$ 3,500 MILLION PROINVERSIÓN PROMOTES THE DEVELOPMENT OF THE CAJAMARCA WWTP PROJECT WITH AN INVESTMENT OF US$ 58 MIL PROINVERSIÓN: MORE THAN S/ 620 MILLION WILL BE AWARDED IN 2023 IN WORKS FOR TAXES PROINVERSIÓN: UNSOLICITED PROPOSALS PRESENTED TO MODERNIZE THE PORT OF CHIMBOTE ACCIONA CONCESIONES WAS AWARDED THE TWO ELECTRICITY PROJECTS PROMOTED BY PROINVERSIÓN

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

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