ProInversión plans to promote 31 projects totaling more than $7.8 billion in 2025.
The year 2024 has posed significant challenges for the Peruvian economy. However, efforts by the government, working closely with the private sector, have yielded substantial results, according to a recent report. According to the Agency for the Promotion of Private Investment (ProInversión), the Transportation sector led the portfolio of Public-Private Partnership (PPP) awards this year, achieving a total of $4.366 billion through the awarding of three projects aimed at strengthening the country’s connectivity.
“These historic megaprojects will significantly impact the nation and have been awaiting development for many years. These include the Peripheral Ring Road, with an investment of $3.396 billion, the new San Juan de Marcona Port Terminal, involving $405 million, and the Huancayo-Huancavelica Railway—also known as the Tren Macho—with $565 million in investments,” stated José Salardi, Executive Director of ProInversión.
Impact
The official explained that the Peripheral Ring Road will benefit approximately 4.5 million residents of Lima and Callao by constructing, operating, and maintaining a modern 34.8-kilometer highway interconnecting 11 districts in the capital.
“The project, awarded to the Cintra, Acciona, and Sacyr consortium, will significantly reduce travel times, cutting the trip from Ate to Independencia to 15 minutes and from San Juan de Lurigancho to Independencia to just five minutes. Moreover, it will generate 70,000 direct and indirect jobs during construction and an additional 20,000 during operation,” Salardi affirmed.
Salardi highlighted the new San Juan de Marcona Port Terminal megaproject’s role in boosting the development of southern Peru. The multipurpose infrastructure will benefit 29 provinces in Arequipa, Ayacucho, Apurímac, Cusco, and Ica.
“In addition, it will stimulate complementary investments, such as the Andahuaylas–Marcona Railway, with an investment of $5 billion, and the revitalization of the petrochemical industry in the south, attracting over $2 billion in additional investments,” he noted.
According to ProInversión, the terminal is estimated to generate 80,000 jobs within its area of influence. Referring to the modernization of the Huancayo–Huancavelica Railway, a historic transportation infrastructure nearing its 100th year of operation, Salardi stated that the concession to the Central Railway Concessionaire Consortium will benefit 1.2 million residents in Junín and Huancavelica.
“This concession includes the design, financing, execution of works, acquisition of rolling stock, operation, and maintenance for 30 years of the 128.7-kilometer railway. It also involves constructing a new repair and maintenance workshop, improving drainage systems, protecting slopes, renewing the rail superstructure, and other enhancements,” Salardi said.
Works for Taxes
This year, another critical area that gained prominence was the Works for Taxes (OxI) initiative, with awards reaching 4.004 billion soles across 124 projects as of December 20. This initiative has helped reduce education, healthcare, transportation, sanitation, and public safety gaps, furthering private investment in Peru.
“This outcome is significant because it equals approximately what was achieved over the last seven years through OxI, demonstrating the momentum this tool has gained, now being used in 23 regions of Peru,” Salardi emphasized.
According to the agency, this result is unprecedented in the 16 years since the mechanism’s creation. It now spans 18 regions, contributing decentralized to regional and local government projects and public universities through private investment in Peru.
Improvement Plans
As part of these efforts, several projects were awarded, such as five improvement plans for the I.E Ciencias in Cusco, which required an investment of 249 million soles; the construction of a reservoir in the Yura River basin in Arequipa, which required an investment of 102 million soles; and the improvement of I.E. Javier Heraud in La Libertad, which required an investment of 68 million soles.
Additionally, bike lanes along Cutervo Avenue and Huacachina Avenue in Ica were constructed, costing 40.7 million soles, and I.E Nuestra Señora de la Natividad in Cusco was improved, costing 23 million soles.
Denisse Miralles, Director of Decentralized Investments at ProInversión, stated that the agency expects to close the year with awards exceeding 3.9 billion soles in OxI projects, surpassing the cumulative total of the past five years and highlighting the significant impact of private investment in Peru.
From 2009 to 2024, the mechanism has awarded 619 projects, amounting to more than 11.202 billion soles, benefiting over 22 million Peruvians with improved infrastructure and services.
Expectations
Prospects for 2025 are highly encouraging. The promotion agency plans to award 10 Transportation sector projects worth more than $3 billion, including nine roadworks projects totaling $2.828 billion and the Chimbote International Port Terminal, which requires an investment of $331 million.
The agency plans to award 31 projects via Public-Private Partnerships and Asset Projects in 2025, reaffirming its commitment to bridging infrastructure and essential services gaps through a collaborative public-private model that prioritizes positive impacts on the population and the environment. Private investment in Peru will play a pivotal role in achieving these goals.
ProInversión projects total investments of $7.893 billion for 31 infrastructure and service improvement projects under Public-Private Partnerships (PPP) and Asset Projects (PA).
Key Data
- 75% of the 2025 portfolio comprises nine road projects worth $2.828 billion.
- Three real estate projects totaling $1.827 billion.
- Eight sanitation projects collectively amounting to $1.231 billion.
- Five health and tourism projects totaling $1.257 billion were awarded through public-private partnerships.
Summary
The year 2024 has proven to be a milestone for private investment in Peru, with significant advancements in transportation, sanitation, education, and healthcare infrastructure. ProInversión’s strategic focus on Public-Private Partnerships and initiatives like Works for Taxes has bridged critical service gaps, setting a solid foundation for continued economic development. Looking forward to 2025, ProInversión aims to sustain this momentum, driving transformative projects and leveraging private investment in Peru to enhance connectivity and improve quality of life nationwide.