Peru Overcomes Barriers to Invest in Transportation
A country not expected to be in the news about mobility, Peru is taking big steps to improve its infrastructure through public-private partnerships (PPPs).
ProInversion, Peru’s governmental private investment promotion agency, has thrived under the new leadership of executive director Aalvaro Quijandria. In the past year, they are projected to quadruple the value of their public-private partnerships to $4 billion in 2017, and this number is expected to increase to $10 billion in 2018.
Aalvaro Quijandria: One general mandate has been to modernize and improve the PPP system in Peru. First, we have to have a procurement process that is more predictable and more aligned to what investors expect from a PPP. Second, we have to have a financing structure that transfers more risk to the private sector, while we provide the financing vehicles to handle these risks.
This rapid ascent will mean vast improvements to transportation in Peru. The main focuses of ProInversion are roads, ports, and subways. The improvements will help connect poorer regions of Peru to the rest of the nation. While there is still much progress to be made, Peru proves that while institutional barriers may be a roadblock to innovation, the challenges are not insurmountable.
Read the interview between LatinFinance and Aalvaro Quijandria here (paywall).