Despite temporary shocks such as social conflicts and bad weather, Peru’s Ministry of Economy and Finance (MEF) expects an upswing in the infrastructure investments it oversees.
According to the report, the diversified project portfolio from the MEF’s Equipo Especializado de Seguimiento de la Inversión (EESI) foresees the execution of US$1.026 billion in investments between January and March 2023.
This amount is 17% higher than the investments executed in the first quarter of 2022.
The MEF pointed out that this increase in investment planning is mainly due to projects in the transport and communications sector and the energy and mining sectors.
In the transport subsector, important projects include the expansion of the Jorge Chavez International Airport, the Chancay Port Terminal, Line 2 of the Lima and Callao Metro, the Callao South Pier, and the Chinchero International Airport, with a planned investment of US$372 million for the first quarter of 2023.
The communications subsector is expected to see a significant increase in investment in the Ancash Broadband, Huanuco Broadband, Arequipa Broadband, and San Martin Broadband projects, which would have reached around US$22 million in March 2023, compared to US$9 million in the same period last year.
In the energy and mining sector, major projects such as La Niña – Piura Link, Pariñas-Nueva Tumbes Link, Tingo María-Aguaytía Link, Lot 95, Yanacocha Sulfides, San Gabriel, Inmaculada Optimization and Toromocho were programmed for the first quarter of this year with a total investment of US$257 million.
The MEF stated that it continues to coordinate with the entities to whose sector the investment projects belong, as well as those responsible for issuing permits, and proactively micromanaging to make the investments profitable and ensure compliance with their schedules.
This coordination has allowed significant progress to be made in the development of projects in recent weeks, such as:
1) Expansion of Jorge Chavez International Airport: the coordinated work with the MTC, CORPAC, and the concessionaire has allowed the completion of the control tower, which will allow the start-up of the airport’s second runway.
It is worth mentioning that the project foresees investments of more than $500 million until 2023.
2) Line 2 of Lima and Callao Metro: in March, municipal permits were granted to open two new work fronts (stations 8 and 9), making the construction work feasible for US$50 million.
Also, completing the works to eliminate water and sewage problems at station 7 was coordinated with Sedapal and the ATU, contributing to making the execution of the construction work at the station feasible for US$23 million.
On the other hand, approval was granted for the final engineering study (EDI) for three stations on the branch line, making the works feasible for US$60 million.
In addition, the MTC entrusted the ATU with the purchase of tickets, which will contribute to the start-up of Stage 1-A.
3) Quellaveco: approval of the operating permit for the first stage of raising the tailings dam, reducing the risk of interruption of operations due to lack of space for tailings storage.
It should be noted that Quellaveco’s production will account for more than 10% of national copper production by 2023.
4) Road Network 4: Approval of the accompanying technical report for installing an asphalting plant that will continue works on the Evitamiento Chimbote road for a total investment of US$148 million.
5) 220 kV Pariñas – Nueva Tumbes interconnection: approval of a clearing permit that will allow the construction of a substation with an estimated investment of US$16 million.
6) Nueva Acumulación Quenamari – San Rafael mining unit: approval of the specific terms of reference required to prepare the amendment to the detailed environmental impact study for the mining unit, whose total investment is approximately US$308 million.
The MEF also highlighted that the issues related to the declaration of temporary suspension of activities of this mining unit had been coordinated, and operations have been gradually resumed since March 22.
7) Lot XIII: Approval of the accompanying technical report on modifying the site, platform area, production pipelines, and access roads of 4 gas wells.
In many cases, EBSI actions facilitate the rapid implementation of investment projects that help fill the gaps in basic infrastructure to provide better services to citizens.
In addition, promoting public and private works creates new suitable jobs and links with local MSEs, contributing to the country’s economic revitalization.
“MEF reaffirms its commitment to creating a favorable public and private investment climate and boosting confidence in the national economy.”
“The strength of our macroeconomic indicators and the public and private investments that will be made in the coming months will be key to boosting the economy and creating more opportunities for the population.”