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Peru unveils two-year PPP pipeline worth $14.4bn

Among the projects the country will seek private financing for is the $6.6bn Metro Line 3 expansion scheme in Lima.

Peru has unveiled a portfolio of PPPs worth $14.4 billion it hopes to procure in the next two years.

ProInversion, the South American country’s PPP agency, along with the government’s Ministry of Economy and Finance, released a portfolio of 32 projects it will seek private sector financing for by the end of next year.

Sixteen projects worth around $4.07 billion are expected to be awarded this year, followed by 15 schemes totalling $3.75 billion in 2018, the procuring authorities announced in a statement.

ProInversion also said it expects to award the $6.6 billion Metro Line 3 expansion project by the end of 2018. The line extension is one leg of a plan to build out a metro system to connect suburban areas with the central commercial districts of Lima and Callao in a region with roughly 8 million residents.

Projects in Peru’s pipeline cover the transport, energy, mining, real estate, sanitation and health sectors. ProInversion said the projects would include 950km of new roads, 650km of new transmission and 190km of additional railway.

“These are strategic projects, selected under the criteria of strategic and functional feasibility, which will help close the infrastructure gap and improve the country’s competitiveness in the international context,” ProInversion executive director Álvaro Quijandria said.

Alfredo Thorne, Peru’s minister of economy and finance, added: “Our goal is to achieve high-quality investment projects, good bidders, transport and high governance.”

Earlier this month, the government put a spanner in the works of a $5.2 billion Peruvian gas pipeline deal between Brookfield Asset Management and Brazilian construction conglomerate Odebrecht. Peru said it is considering holding any money Odebrecht, which is facing massive penalties over corruption charges, might make from the deal.