A new legal framework issued by Peru’s Ministry of Economy and Finance will increase transparency and cut the bidding time for PPP projects, the ministry says.
The framework, announced last week, “puts [Peru] at the forefront” of PPPs in Latin America, according to Finance Minister Alfredo Thorne. The new guidelines will “guarantee the protection of the interests of all Peruvians” and “improve concession quality and quantity”, Thorne said.
The changes aim in part to give greater autonomy to ProInversion, Peru’s PPP agency, while more clearly delineating the roles of the agency and the finance ministry. It will also reconfigure ProInversion’s organisation, giving more power to local and regional offices.
Other changes to the law look to simplify and shorten the tender process and to improve the quality of the projects reaching the market. The finance ministry is given authority to create instruments to spur private financing.
Peru has sought to utilise PPPs for projects in transportation, energy, mining, sanitation and healthcare infrastructure. In January, ProInversion and the finance ministry unveiled a $14.4 billion portfolio comprising 32 projects for which the government will seek private financing by the end of 2018.