Meeting financial commitments, recovering political stability, and complete legal trust and certainty are essential for attracting investments in infrastructure in Peru, indicated the global law firm DLA Piper.
Investment in infrastructure in Peru is crucial for the country’s progress because it improves citizens’ quality of life and strengthens the nation’s economy. For the present year, Peru expects to achieve 3% growth in its gross domestic product (GDP), according to the Ministry of Economy and Finance (MEF).
To meet this goal, investment in infrastructure in Peru is essential since several projects in the country’s portfolio are being promoted. One is the New San Juan de Marcona Port Terminal (US$ 405 million), and another is the Peripheral Road Ring (US$ 3.4 billion), significantly impacting Peru’s economic development.
In addition, it is anticipated that several important projects will be awarded this year: the Huancayo – Huancavelica Railway (US$ 394 million), the Longitudinal de la Sierra Section 4 (US$ 1,2 billion), 15 electricity sector projects valued at US$ 900 million, and the Puerto Maldonado Wastewater Treatment Plant (WWTP) with an investment of US$ 98 million, among others.
The Port of Chancay will be operational by year’s end
According to Cosco Shipping, the Chancay port mega-project will be inaugurated in November of 2024, driving the economy. Even Lima Airport Partners (LAP) commented that in December, the new infrastructure of the Jorge Chávez International Airport will be in operation.
Included among other recent investments in infrastructure in Peru are the following projects:
- Lima Metro Expansion: The Lima Metro has been undergoing expansion to alleviate traffic congestion in the capital city. Additional lines and stations were being constructed to enhance public transportation.
- Chavimochic Irrigation Project: This project aimed to expand irrigation infrastructure in the northern coastal region of Peru, facilitating agricultural development and water management.
- Southern Peru Highway: Efforts were ongoing to improve the road network in southern Peru, connecting remote communities and enhancing transportation efficiency.
- Renewable Energy Projects: Peru has been investing in renewable energy infrastructure, including wind and solar farms, to diversify its energy sources and reduce dependency on fossil fuels.
- Ports and Airports: Upgrades to ports and airports, such as the expansion of the Port of Callao and improvements to Jorge Chávez International Airport in Lima, were also underway to accommodate increasing trade and tourism demands.
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Investments in infrastructure in Peru are of critical importance
According to Carlos Núñez, partner at DLA Piper, Peru is an attractive country to invest in infrastructure projects.
“In the last year, some prolonged public infrastructure projects have been gradually reactivated, and projects that were pending in the pipeline for a long time have been relaunched. Even this year, some important awards have already been made,” Núñez said.
However, he also pointed out that this trend must be sustained, not circumstantial. He highlighted that the Peruvian Government has fulfilled its long-term payment commitments in co-financed Public-Private Partnership (PPP) projects, which should make it possible to finance new public infrastructure works despite political uncertainties and, in some cases, the lack of a reliable legal framework in the country.
He added that continuing to meet the financial commitments made, recovering political stability, and complete legal trust are extremely important given the new investments in infrastructure in Peru that are necessary to make in the country.
In this context, DLA Piper, a global firm with a presence in more than 40 countries, was the organizer of Peru’s Investment Summit 2024. This event brought together various Peruvian and foreign organizations and individuals interested in the country’s economy to debate the topic of “Infrastructure for development: challenges and opportunities for investment in Peru.” The event was held on April 25th.
Peru is at a critical point in its development
In conclusion, Peru stands at a critical juncture in its journey toward economic advancement, with investments in infrastructure poised to play a pivotal role in shaping its trajectory. The commitment shown by the Peruvian government to meeting its financial obligations and fostering a conducive environment for investment underscores the nation’s determination to propel its infrastructure sector forward. As Carlos Núñez of DLA Piper highlighted, sustaining this momentum is imperative, ensuring that progress in infrastructure development remains robust and enduring. Against a backdrop of global uncertainties and evolving political landscapes, maintaining trust and stability within the legal framework becomes paramount to attracting the necessary investments in infrastructure in Peru. The recent Investment Summit 2024, organized by DLA Piper, serves as a testament to the collective efforts to unlock the full potential of Peru’s infrastructure landscape, offering a platform for dialogue and collaboration among stakeholders. With a diverse portfolio of projects spanning transportation, energy, and urban development, Peru is primed to harness the transformative power of infrastructure investments, driving inclusive growth and enhancing the quality of life for its citizens. As the nation looks ahead to a future of sustainable development and prosperity, investments in infrastructure will continue to serve as the bedrock upon which Peru’s economic success is built, cementing its position as an attractive destination for global investors seeking opportunities in Latin America.
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