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ProInversión and MVCS declare of interest, the execution and concession of the Cajamarca WWTP PROINVERSIÓN will call public tender in July to provide drinking water to 1.2 million Lima residents PROINVERSIÓN promotes new hospitals to decentralize health services PROINVERSIÓN, MINCETUR and MEF socialize Choquequirao Cable Car project in Cusco PROINVERSIÓN: PPP investments in ports helped to multiply exports by a factor of 10 Works for Taxes: Urban mobility in Apurimac will be improved for almost 1 million soles PROINVERSIÓN will award in July the Longitudinal de la Sierra Highway, Section 4 of 965 kilometers INPE plans to build and expand six penitentiary facilities for S/ 1,182 million through Work for Tax PROINVERSION calls a tender for the operation and maintenance of the San Borja Children's Hospital Cusco: PROINVERSIÓN trains institutions on PPPs, Projects in Assets and financial benefits PROINVERSIÓN and MINJUSDH present a portfolio of projects to strengthen the justice sector Public Entities have 124 lands for Projects in Assets for more than S/ 4 billion PROINVERSIÓN promotes investment opportunities of more than US$70 billion in USA PROINVERSION boosts the development of seven regional cable cars for more than US$ 460 million INVESTOR CONFIDENCE IN PERU REMAINS STRONG PERUVIAN ARMY OFFERS 30 PLOTS OF LAND FOR INVESTMENT PROJECTS IN THE FIRST QUARTER OF 2025, PROINVERSIÓN TRAINED AND PROVIDED TECHNICAL ASSISTANCE TO 412 PUBLIC E PROINVERSIÓN ASSESSES ECONOMIC AND SOCIAL IMPACTS OF PPP CONCESSIONS THERE ARE 11 PPPs WITH CURRENT CONTRACTS THAT COULD ADVANCE INVESTMENTS OF ALMOST US$12 BILLION PERU PROMOTES PROJECTS WORTH US$70 BILLION AT INTERNATIONAL PPP FORUM AWARDS OF WORKS FOR TAXES IN THE FIRST QUARTER SET A RECORD PROINVERSIÓN AND MINCETUR ADVANCE WITH THE SOCIALIZATION OF THE CHOQUEQUIRAO CABLE CAR PROJECT PROINVERSIÓN AND ATU SIGN AGREEMENT TO PROMOTE URBAN TRANSPORT PROJECTS IN LIMA AND CALLAO PROINVERSIÓN AND THE UNITED KINGDOM WILL PROMOTE THE DEVELOPMENT OF PPP IN PERU PROINVERSIÓN AND MINEDU WORK TO ENSURE SUSTAINABILITY OF EDUCATIONAL INFRASTRUCTURE IN THE COUNTRY PPP PORTFOLIO IS AN IMPORTANT INDICATOR OF PRIVATE SECTOR CONFIDENCE IN PERU PROINVERSIÓN AND THE REGIONAL COMMUNITY OF THE ANDES PROMOTE 85 PROJECTS FOR MORE THAN S/ 8300 MLLS PROINVERSIÓN WILL LEAD THE PROCESS TO MAKE THE HUASCARÁN CABLE CAR A REALITY IN ÁNCASH PERU HAS MORE THAN S/ 33 BILLION TO CARRY OUT PROJECTS VIA WORKS FOR TAXES IN 2025 MEF EMPOWERS PROINVERSIÓN TO PROVIDE SUPPORT IN PUBLIC - PRIVATE PARTNERSHIPS TACNA HAS A POTENTIAL OF S/ 1254 MILLION FOR INVESTMENT IN WORKS FOR TAXES PROINVERSIÓN WILL PROMOTE THE OPERATION AND MAINTENANCE OF FIVE SPORTS VENUES WITH WORKS FOR TAXES PROINVERSIÓN RECEIVES NEW ORDER TO TENDER 16 ELECTRICAL PROJECTS FOR US$ 900 MILLION PROINVERSIÓN PROMOTES INVESTMENTS FOR MORE THAN US$ 3.5 BILLION IN METROPOLITAN LIMA PROINVERSIÓN WILL AWARD 19 PROJECTS IN THE CENTRAL MACRO REGION FOR US$ 6 BILLION BETWEEN 2025-2027 IN MAY, THE CONSTRUCTION OF 13 SCHOOLS AT RISK IS EXPECTED TO BE DECLARED OF INTEREST FOR US$ 285 MI PROINVERSIÓN PROVIDED TECHNICAL ASSISTANCE AND TRAINING TO 778 PUBLIC ENTITIES AND 264 PRIVATE COMPA FCC AQUALIA OF SPAIN WILL DEVELOP THE CHINCHA WASTEWATER TREATMENT PLANT PROINVERSIÓN WILL AWARD SEVEN PROJECTS FOR MORE THAN US$ 2.8 BILLION BETWEEN JANUARY AND APRIL 2025 WORKS FOR TAXES ACHIEVE A HISTORIC RECORD OF MORE THAN S/ 4.2 BILLION BY THE END OF 2024 BALANCE 2024: TRANSPORT SECTOR LED AWARDS WITH THREE PROJECTS FOR US$4,366 MILLION PROINVERSIÓN AWARDED 21 ELECTRICAL PROJECTS FOR MORE THAN US$2.2 BILLION IN THE LAST 24 MONTHS WORKS FOR TAXES EXCEEDED S/ 4 BILLION THROUGH 124 AWARDS IN 2024 AWARD OF THE CHINCHA WASTEWATER TREATMENT PLANT IN THE FINAL STAGE ENGIE ENERGÍA PERÚ S.A. 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HUANCAVELICA RAILWAY PROINVERSIÓN: ANCASH PROMOTES A PORTFOLIO OF 40 PROJECTS IDENTIFIED FOR MORE THAN S/ 5.6 BILLION PROINVERSIÓN IS ABOUT TO CONCLUDE THE TECHNICAL STUDY FOR THE CHIMBOTE PORT TERMINAL CONSORTIUM WILL START STUDY THAT WILL DEFINE THE INVESTMENT MECHANISM OF THE CHINECAS PROJECT THREE STAKEHOLDERS PRESENT CREDENTIALS TO MODERNIZE THE HUANCAYO - HUANCAVELICA RAILWAY PROINVERSIÓN PROMOTES PPP PORTFOLIO IN SANITATION FOR MORE THAN US$ 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

KUELAP GONDOLAS PPP PROJECT DOUBLED THE NUMBER OF TOURISTS IN THE ARCHAEOLOGICAL CENTER

October 14, 2021. Lima, Peru.- The Private Investment Promotion Agency (PROINVERSIÓN) has analyzed the impact of Public-Private Partnerships (PPPs) of the tourism sector on the economic and social development of the country.

PPPs in the tourism sector have made it possible to take advantage of Peru's cultural and natural potential and generate an indirect impact on lodgings, restaurants and tourism companies, boosting employment. To date, PROINVERSIÓN has carried out three projects in concession under Public-Private Partnerships modality (Huachipa Recreational Ecological Center, the concession of the operation and maintenance of Chaco la Puntilla Tourist Marina Lot E and Kuelap Gondolas) with a joint investment of more than US$ 27 million.

In particular, the "Kuelap Gondola Systems" Project has made it possible to reconfigure economic activity in the Amazon region. This project, which emerged as a Co-financed Government Initiative, was awarded on May 30, 2014 to the Kuelap Gondola Consortium, which assumed the design, construction, equipment and operation of the gondola system for a concession period of 20 years. Similarly, the concession of Huachipa Recreational Ecological Center (CER Huachipa), houses about 286 species of animals and 400 wild plants and has managed to maintain a good management of wildlife, obtaining a score of 5 out of 5 according to the ZoObservatorio of OSINFOR in 2018.

INTERNATIONAL EXPERIENCE IN TOURISM PPP

Tourism PPP is a mechanism used in multiple parts of the world to take advantage of the tourism potential of each region. Faced with the continued growth of travel and tourism, some governments have seen opportunities in the use of PPPs in this segment, particularly in heritage sites and national parks. For example, in Australia, the North Head Quarantine Station heritage project was concessioned for a period of 20 years, which allowed the rehabilitation and conservation of the cultural and natural asset and increased the number of visitors. In the same way, in New Zealand, the Abel Tasman National Park – with an area of 23,000 hectares – hosts several tourist concessions for kayaking and guided walking.

These projects allowed to generate regional impact with sustainability.  The use of PPPs has made it possible to develop sustainable tourism, which is reflected in tourism assets with high environmental and social standards while taking advantage of the efficiency and creativity of the private sector. Thus, for example, there are several Ecotourism projects with positive impacts on the conservation and attraction of tourists on Chumbe Island in Tanzania and Maputo Special Reserve in Mozambique.

IMPACT OF PPPS IN THE PERUVIAN CASE

One of the most important projects in this area has been the Kuelap Gondolas, which is the first regional project on which we have evidence of its direct and indirect impacts and which will serve as the basis for the next projects in the country.

First, Kuelap Gondolas have increased visits to the Kuelap archaeological center and generated more tourism in the Amazon region. Before the execution of the project there were only two ways to access Kuelap (by vehicle or walking), which was risky and costly in time. However, the implementation of the project has made it possible to reduce the transit time from Tingo district to Kuelap from approximately two (2) hours to only 20 minutes. This improvement in time allowed to increase the tourist attraction of the area. The project began its commercial operation in March 2017, making the archaeological complex of Kuelap from having 56 thousand visitors in 2016 to 103 thousand in 2017, increasing the arrival of tourists by 84% in just one year. In fact, Lahura (2019) estimates that the gondolas allowed to increase visits to Kuelap by 100% with respect to a synthetic indicator that seeks to capture the situation of the archaeological rest without the gondolas.

North East Tourism Circuit:
Offer of tourist destinations

Arrival of Tourists to the Archaeological Complex of Kuelap
(2009-2019)

Source: PROINVERSIÓN Source: MINCETUR

Likewise, it was possible to promote the arrival of tourists to the tourism circuit of the Amazon region. For example, Gocta waterfall tripled the influx of visitors in the period 2016 - 2019, from 20,292 visitors in 2016 to 59,531 visitors in 2019. Similarly, Leymebamba Museum, in 2019 doubled the number of visitors compared to 2015.

Second, Kuelap gondolas have become an additional tourist attraction in the area. These gondolas are an unprecedented project in the country that increases the arrival of national and international tourists who take advantage of the view and can visit the archaeological complex. However, it is interesting to identify that the number of users of the gondolas is usually higher than the visit of the Kuelap Fortress. It is an indicator that some visitors go to the region to live the experience of the gondolas

Users of Gondola system and Visitors of Kuelap Fortress
(Thousands)


Fuente: MINCETUR

Third, the take-off of the gondolas generated direct dynamism in other trade and services activities in Nuevo Tingo. Thus, one of the most benefited sectors has been the segment of restaurants and hotels. For example, the number of guests increased from 379 thousand in 2014 to 602 thousand in 2019 in Amazonas. Most of these visitors wanted to go to the archaeological complex, the catacombs, the Gocta waterfall, among other attractions. In addition, according to the study by Mincetur, restaurants and food and beverage establishments increased by 250% in Nuevo Tingo between 2014 and 2017. This also created jobs for tourism services. In fact, the number of tour operators in the area increased from 11 in 2014 to 37 in 2017.

GAP AND UPCOMING INVESTMENT PROJECTS

The country still has a lot of natural and cultural potential to take advantage of, guaranteeing its sustainability. In fact, Peru has 1,729 natural sites, 2,187 cultural manifestations and has one of the wonders of the world. However, 92% of the tourist resources inventoried still do not provide adequate services to the public, which generates a wide space to improve. In fact, when we compare the arrival of international tourists with other countries with wonders of the world, we are still behind several of them (See graph).

To bridge this gap, PROINVERSIÓN currently has two projects in its portfolio with a total investment of more than US$ 270 million. Choquequirao Project seeks to improve tourist accessibility to the Choquequirao Archaeological Park in the Cusco region. This project includes road networks, trekking routes, cable transport systems, which will increase the flow of tourists and the satisfaction of visitors. Along with this, Cerro San Cristóbal Gondola Tourism Project will improve tourist accessibility to Cerro San Cristóbal through cable transport systems and thus be able to properly take advantage of the tourist potential of the Historic Center of Lima and Rimac district. Both projects are expected to benefit close to 1 million visitors per year and continue to carry on the benefits of the successful Gondolas of Kuelap experience.

For more information on our portfolio of projects, visit our promotional website: https://www.investinperu.pe/en/projects/proinversion-project-portfolio.

Source: Press Release - PROINVERSIÓN

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