The hopes of a nation rested on the support of foreigners. But the pleas of Paulo Guerrero and thousands of protestors on the streets of Peru have fallen on deaf ears. FIFA has upheld its ban, and the captain of the Peruvian football team will not be allowed to play at the first World Cup the country has qualified for since 1982 due to a failed drugs test.
While Guerrero was in Switzerland making his ultimately unsuccessful appeal to FIFA, representatives of the Peruvian government were preparing their own petitions to international institutions.
The land of the Incas has a strong track record for infrastructure but development has slowed over recent years. The reverberation from the Lava Jato scandal have shaken the construction industry, and ultimately led to the fall of President Pedro Pablo Kuczynski earlier this year (2018). None of which has been healthy for investor confidence.
Peru’s Private Investment Promotion Agency (ProInversión) is now conducting roadshows around the world in hope of attracting new investment to the country’s substantial pipeline of projects. Opportunities for investors and contractors are vast.
Peru boasts the award of over 100 PPP contracts over the last decade. The market is well-known for its investor-friendly environment and has experience of procuring a variety of project types.
Yet there is still huge demand for infrastructure investment, which is why ProInversión has a pipeline of 50 projects it is promoting around the world as part of its 2018-2020 portfolio. Transport projects make up 40% of the total, mining 23% and healthcare 10% – with water, energy, education, irrigation, and telecoms making up the rest.
So the government has a good story to tell, although it may seem a familiar one to many of those investors.
Back in January 2017, ProInversión announced a pipeline of 32 projects following a reform of the PPP framework. And many of the projects being promoted then are still in the shop window.
In 2016, then-President Kuczynski set out plans to speed-up the procurement of projects, and attract developers other than usual suspects such as Odebrecht and OAS, which at the time were main suspects in the Lava Jato investigation.
Less than two years later, allegations of secret payments to Odebrecht officials led to the resignation of a President who had previously seemed well-placed to enact political reform and boost investor confidence.
That job now falls to his successor Martín Vizcarra. He is prioritising economic growth and has already tabled proposals to accelerate infrastructure development.
Over the next month, representatives from the government and ProInversión will have audiences with investors in cities around the world. Given the opportunities on offer, and despite recent setbacks, attendees will be keen to listen to what they have to say.
(Below is a list of the 20 most advanced projects in Peru’s pipeline)
|Huancayo to Huancavelica Railway||Central highlands||Co-financed government initiative||30-year DFBOT||$235 million||Call for bids open until November 2018|
|Jalaoca mining project||Apurimac, central highlands||Government initiative/transfer agreement||Developing two mines: a copper-gold porphyry skarn deposit and a copper-molybdenum porphyry deposit||Concession term and investment amount to be determined||16 companies have acquired bidding documents, with award due in June 2018|
|Colca mining project||Apurimac, central highlands||Government initiative/transfer agreement||Developing a copper-gold porphyry deposit spread over 14,100 hectares||Concession term and investment amount to be determined||14 companies have acquired bidding documents, with award due in September 2018|
|Masificación de Uso de Gas Natural||7 regions of central and southern Peru||Self-financed government initiative||32-year concession to transport compressed gas by trucks to cities and distribute through pipelines||$350 million||Bids open, with award in July 2018|
|Repowering of Carabayllo–Chimbote–Trujillo transmission line||Northern and central coast||Self-financed government initiative||30-year DFBOM for the repowering of part of the transmission line||$90 million||Under structuring, estimated award in H2 2018|
|Connection, substations and transmission lines for La Niña – Piura||Northern coast||Self-financed government initiative||Concession details to be determined||$132.1 million||Under preparation, estimated award in H2 2018|
|Connection, substations and transmission lines for Pariñas – Nueva Tumbes||Northern coast||Self-financed government initiative||Concession details to be determined||$47.3 million||Under preparation, estimated award in H2 2018|
|Connection, substations and transmission lines for Tingo María – Aguaytía||Jungle region||Self-financed government initiative||Concession details to be determined||$20.4 million||Under preparation, estimated award in H2 2018|
|Wide band telecoms transmission lines||6 regions in the north and south of the country||Asset transfer||25-year concession to expand broadband carrier networks and access networks for rural areas||$359 million||Under preparation, with award due in Q4 2018|
|Lake Titicaca Basin water treatment system||Highlands||Co-financed private initiative initiated by Tedagua and Acciona||30-year concession to deliver 14 new water treatment plants (10 to be built by private sector)||$309 million||EOI issued in March 2018 with a deadline of June 2018|
|San Juan de Marcona Port Terminal||Southern coast||Private initiative by Shougang Mining Company||30-year DFBOM for a new port for iron, copper and mining supplies||$582 million||Under preparation - call for expressions of interest: H1 2019|
|Longitudinal de la Sierra – Sección 4 highway||Central highlands||Co-financed government initiative||25-year DFBOT||$464 million||Under preparation - estimated award date Q1 2019|
|Autopista International del Norte highway||Northern coast||Co-financed private initiative||25-year concession||$763 million||Under preparation - calls for expressions of interest: H1 2019|
|Anillo Vial de Lima ring road||Lima||Co-financed private initiative||30-year concession awarded to Ferrovial and JJ Camet||$2 billion||Under structuring, delayed by land expropriation issues|
|Integrated System of Gas Transport – South Zone||3 regions of southern Peru||Co-financed government initiative||Developing pipelines to transport natural gas from Cuzco to regions of Arequipa and Moquegua||Concession term and investment amount to be determined||Estimated award in H2 2020|
|Headwater streams to supply drinking water||Lima||Self-financed government initiative||30-year DFBOM concession for dams, diversion works, potable water plant, and pipelines||$600 million||IFC advising, under preparation. Bidding docs due to be released in Q1 2019|
|Puerto Maldonado water treatment plant||Southern jungle||Co-financed government initiative||DFBOM for piping treatment and disposal of wastewater system (concession length to be determined)||$20.08 million||Under preparation, estimated award in Q1 2019|
|Huancayo, El Tambo y Chilca water treatment plant||Central highlands||Co-financed private initiative||Concession details to be determined||$90 million||Under preparation, estimated award in Q1 2019|
|Essalud - Piura and Ancash high complexity hospitals||Northern region||Co-financed government initiative||17-year O&M concession for complimentary services at two hospitals||$254 million||Under preparation, estimated award in H1 2019|
|Children and Adolescents Health Institute||Lima||Co-financed government initiative||20-year (plus 3-year construction) DBOM for complementary services||$170 million||Early stages. Documents likely to be ready for bidders by the end of 2019|