Junín has a potential of S/ 2.1 billion to implement projects through the Works for Taxes mechanism
Lima, July 15, 2025.- The Private Investment Promotion Agency (PROINVERSIÓN) reports that the Junín region has significant potential—amounting to S/ 2.11 billion—for executing public investment projects through the Works for Taxes (OxI) mechanism, in accordance with the annual capacity limits set for public entities to issue Regional and Local Public Investment Certificates – Public Treasury (CIPRL).
Of the total amount, the Regional Government of Junín accounts for S/ 1.67 billion in potential, while local governments have S/ 410 million, and public universities hold S/ 30 million. These resources come from various sources such as the canon, overcanon, royalties, customs revenues, revenue-sharing, ordinary public budget funds, the Regional Compensation Fund (FONCOR), among others.
In the province of Huancayo, the district municipalities have the capacity to execute investments through the OxI mechanism for a total of S/ 38 million. Notable among them are the districts of El Tambo with S/ 11 million, Chilca with S/ 9.6 million, and Pilcomayo with S/ 2.6 million, among others.
“Junín is one of the regions with the greatest capacity to execute investments through the Works for Taxes mechanism. At PROINVERSIÓN, we are intensifying our work with regional and local authorities to ensure they take advantage of this mechanism, which has proven to be more efficient in terms of time, cost, and quality compared to traditional public works,” said Denisse Miralles, Director of Decentralized Investments at PROINVERSIÓN.
The official emphasized that the OxI mechanism significantly reduces the risk of corruption, as it does not involve the transfer of public funds and is subject to prior and continuous oversight by the Comptroller General of the Republic. It also enables faster execution, ensuring that projects reach the population in a timely manner.
Progress of Projects in 2025
So far in 2025, two (2) investments have already been awarded for a total amount of S/ 21 million: (i) an investment by the District Municipality of Pangoa aimed at improving and expanding citizen security services, with a value of S/ 10 million; and (ii) an IOARR by the Regional Government of Junín for the replacement of 12 ambulances across five healthcare facilities, with an investment of S/ 11 million, intended to strengthen the department-wide health system’s response capacity.
For the second half of 2025, four (4) additional investments are expected to be awarded, for a total amount of S/ 28 million. Among the most notable projects are: (i) the improvement of cultural services at the Youth Palace, with the District Municipality of Huay-Huay, for S/ 5 million; (ii) the improvement of the drinking water and sanitation system in the town of Yauli, with the District Municipality of Yauli, for S/ 5 million; and (iii) the acquisition of a compactor truck and a flatbed truck with the District Municipality of El Tambo, for a total of S/ 6 million.
Historical Balance
Since the implementation of the mechanism in 2009, Junín has awarded 18 investments through the OxI scheme, totaling S/ 148 million, of which nine were carried out in the province of Huancayo for a total of S/ 51 million.
The sectors with the highest accumulated investment in Junín are Transportation (S/ 45 million) and Education (S/ 21 million), which together account for nearly half of the total awarded through the OxI mechanism.
This significant potential highlights the opportunity Junín has to close infrastructure and essential public service gaps. PROINVERSIÓN reaffirms its commitment to effective decentralization and calls on regional and local authorities to actively use the Works for Taxes mechanism to promote the sustainable development of their communities.
Source: Press Release – PROINVERSIÓN