This content is from: Local Insights
Opening new avenues in Peru
Karen Temoche
It is not news that Peru has demonstrated consistent levels of economic growth and robust financial indicators over the last decades. There are, however, still several areas on which governmental authorities need to work in order to unlock Peru's potential. One of them is to close the infrastructure deficit that remains in the country.
What plays in the country's favour so far it is that both the Peruvian government and its citizens acknowledge that the key element to maintaining economic growth is setting clear rules, being predictable and acting proactively to attract private investment.
To that regard, lately the Peruvian government has announced a number of measures directed to reinforce private and public investments, specifically in infrastructure projects. Among these measures, Supreme Decree No 104-2013-EF has empowered the Ministry of Economics to create a specialised task force that will be in charge of tracking the country's portfolio of infrastructure projects, being responsible, among other activities, for identifying the problems and delays that affect their execution. Additional relevant measures include those adopted through Law No 30025, which sets out measures to expedite the expropriation of real property necessary for the execution of infrastructure projects; and Supreme Decree N° 054-2013-PCM, which simplified the proceedings in order to obtain archeological clearance certificates (known as CIRA) necessary for the execution of infrastructure projects.
Additional measures are set to be implemented during the next few months. Their purpose will be to decrease bureaucratic barriers in order to facilitate private and public investment in infrastructure projects.
These measures – along with the continued efforts of the applicable governmental bodies – are easing the investment process for infrastructure development and helping to reduce execution risk in general, with respect to potential financial sponsors and lenders who are looking into these projects.