perú proinversión
TRANSCRIPT
October, 2009
INVESTMENT OPPORTUNITIES IN PERU
Why invest in Peru?
GDP growth: 9.8% (2008)• Sustainable growth since 2002 and annual
average growth of 4.75 % for 2009 –12• Exports tripled in 5 years.• Investment is increasing 20% average annually.• One of the lowest inflation in Latin America and
very stable exchange rate (free).
Vast natural resources: • Ores and hydrocarbons.• Available lands with proper climates, for
agricultural development.• 2nd country with larger forests area in Latin
America. • 2 500 Km. of coast and thousands of lakes
sustain the development of fishing and aquiculture.
Economy committed to the commercial integration process:
• Preferential access to CAN, MERCOSUR, USA and EU.
• 32 investment agreements.
Favorable climate for investment: • Country with investment grade.• Attractive framework for Foreign Direct
Investment, based on freedom and equality.• Peru is first in the region for government readiness
for private investment (WEF)• Peru stands first in the Latin America region in
protecting investors (WB)
Variables related to Investment in Peru(variations compared to the foregoing year)
Exports (% var. in US$) 40.9 35.3 36.9 17.5 13.1Capital goods imports (% var. in US$) 19.6 29.6 35.4 41.9 57.6Construction GDP (% var.) 4.7 8.4 14.7 16.6 16.5Tax collection (% var.) 13.6 14.3 27.8 15.3 11.0
2004 2005 2006 2007 2008GDP (%var) 5.1 6.8 7.7 8.9 9.8Private Investment (%var) 8.1 12.0 20.1 23.2 25.6Public Investment (%var) 5.7 12.2 13.0 19.7 41.9
CPI (%var) 3.5 1.5 1.1 3.9 6.7Jobs in companies with 10 or more workers (%var) 3.6 5.7 8.7 8.9 8.5
Sources: Central Reserve Bank of Peru, Ministry of Economy (MEF) and National Institute of Statistic and Information
Outstanding economic growth
Source: International Monetary Fund, Central Reserve Bank of Peru and Ministry of Economy.
WorldPeru
GDP
Grow
th(A
nual
gro
wth
%)
0%
2%
4%
6%
8%
10%
12%
2001 2002 2003 2004 2005 2006 2007 2008 2009* 2010* 2011*
5.0%4.0%
5.0%
6.8%7.7%
8.9%9.8%
Exports growth at significant rates
Accompanied by privateinvestment growth
Source: Central Reserve Bank of Peru and Ministry of Economy
8,668 8,356 8,394 9,22210,544
12,283
15,202
20,578
26,000
0
4,000
8,000
12,000
16,000
20,000
24,000
28,000
2000 2001 2002 2003 2004 2005 2006 2007 2008*
Total Amount in US$ Millions
8,668 8,356 8,394 9,22210,544
12,283
15,202
20,578
26,000
0
4,000
8,000
12,000
16,000
20,000
24,000
28,000
2000 2001 2002 2003 2004 2005 2006 2007 2008*
Total Amount in US$ Millions
6,955 7,026 7,7149,090
12,809
17,368
23,830
27,88231,529
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
2000 2001 200220032004 20052006 20072008
8,6688,3568,3959,22110,545
12,285
15,117
19,478
27,296
0
5,000
10,000
15,000
20,000
25,000
30,000
2000 2001 2002 2003 2004 2005 2006 2007 2008
Increase in the imports of capital goods
( Millions of US$)
Rise in the commercial exchange (Millions of US$)
Source: Central Reserve Bank of Peru and Ministry of Economy
-
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
1998 2000 2002 2004 2006 2008*
OthersTransport EquipmentCapital Goods for the Industry
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
2000 2001 2002 2003 2004 2005 2006 20072008*
Total Imports (US$ Millions)
Total Exports (US$ Millions)
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
2000 2001 2002 2003 2004 2005 2006 2007 2008
Import. Totales (mill. US$)Export. Totales (mill. US$)
-
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
2000 2001 2002 2003 2004 2005 2006 2007 2008
OtrosEquipo de TransporteBienes de capital para la industria
Peru has improved its fiscal position
(% of GDP)
By increasing its central government tax revenues
Source: Central Reserve Bank of Peru and Ministry of Economy
6,524 6,710 6,840 7,877
9,123 10,795
13,891
16,764 18,491
-2,000 4,000 6,000 8,000
10,000 12,000 14,000 16,000 18,000 20,000
2000 2001 2002 2003 2004 2005 2006 2007 2008*
Central Government Tax Revenues (US$ Millions)
-3.3
-2.5 -2.3 -1.7
-1.0
-0.3
2.1
3.1
2.1
-4.0
-3.0
-2.0
-1.0
-
1.0
2.0
3.0
4.0
2000
2001
2002
2003
2004
2005
2006
2007
2008
6,524 6,710 6,840 7,877
9,123 10,795
13,891
16,764
19,905
-
5,000
10,000
15,000
20,000
25,000
2000 2001 2002 2003 2004 2005 2006 2007 2008
... in a framework of macroeconomic stability ...
2008 Average Exchange Rate: 2.9 Inflation Rate 2008: 5.8%
Source: Bloomberg Source: Central Reserve Bank of Peru, Chile, Mexico and Argentina,
70
80
90
100
110
120
130
140
2000 2001 2002 2003 2004 2005 2006 2007 2008
Exchange Rate in Latin America(Index January 2001 = 100)
PeruBrazilChileColombia
-5
0
5
10
15
20
25
30
2000 2001 2002 2003 2004 2005 2006 2007 2008
% A
nual
Cha
nge
Inflation in Latin America
PeruArgentinaBrazilChileMexico
With increasing Net InternationalReserves
Factors recognized by the market and allow the country risk reduction
Source: Central Reserve Bank of Peru
Net International Reserves (US$ Million)
8,180 8,613 9,598 10,19412,631
14,09717,275
27,689
31,196
-
5,000
10,000
15,000
20,000
25,000
30,000
35,000
2000 2001 2002 2003 2004 2005 2006 2007 2008
Aug
-09
Jun-
09A
pr-0
9M
ar-0
9D
ec-0
8O
ct-0
8S
ep-0
8Ju
l-08
May
-08
Mar
-08
Jan-
08N
ov-0
7S
ep-0
7Ju
l-07
May
-07
Feb-
07D
ec-0
6N
ov-0
6S
ep-0
6Ju
l-06
May
-06
Mar
-06
Jan-
06N
ov-0
5S
et-0
5100
200
300
400
500
600
700
800
900
EMBI Peru Latin America
Peru has reached the Investment Grade
S&P/Fitch Moody´s Characteristic
AAA Aaa Risk freeAA+ Aa1AA Aa2AA- Aa3A+ A1A A2A- A3
BBB+ Baa1BBB Baa2BBB- Baa3BB+ Ba1BB Ba2BB- Ba3B+ B1B B2B- B3
CCC+ Caa1CCC Caa2CCC- Caa3
D Ca Default
High uncertainty in the capacity of repayment
Highly vulnerable to default
Superior
High capacity of repayment
Moderate capacity of repayment
Some capacity of repayment
Source Bloomberg.
InvestmentGrade
Latin American Ranking
Source: Standard & Poor’s, Fitch Ratings and Moodiy’sUpdated: March 2009
Country S&P Fitch Moody´sChile A+ A A2Mexico BBB+ BBB+ Baa1Peru BBB- BBB- Ba1 Brazil BBB- BBB- Ba1Colombia BB+ BB+ Ba1Venezuela BB- B+ B2Argentina B- RD B3Bolivia B- B- B3Ecuador CCC+ RD Ca
Peru offers a favorable legal framework for foreign investment ...
Legal Framework: Constitutional provisions, “Law for the Promotion of Foreign Investment”, Legislative Decree N° 662, “Framework Law for Private Investment Growth”, Legislative Decree N° 757, “Law for the Promotion of Private Investment in Infrastructure and Public Service Works”, Approved by Supreme Decree N° 059-96-PCM
Non discriminatory treatment. Unrestrictive access to most economic sectors. No performance requirements. Free transfer of capital. Free competition. Guarantee for Private Property Freedom to purchase stocks from locals. Freedom to access internal and external credit. Freedom to pay royalties. Network of investments agreements and member of ICSID and MIGA Peru is adherent of the OECD Declaration on International Investment and
Multinational Enterprises.
Legal Stability Agreements
Guarantees recognized by the State:
INVESTORS Stability of the right to non discriminatory treatment. Stability of the Income tax rules applicable to dividends. Stability to use freely the most favorable exchange rate
available in the market. Stability of the free availability and remittance of foreign
currency, dividends and royalties regime.
RECEIVING COMPANY Stability of the right of recruitment regimes. Stability of the regimes for the promotion of exports. Stability of the Income Tax Regime
A Legal system that guarantees basic rules and statutes that will not change
Requirement: Minimum investment of US$ 5 MM in any economic sectors. US$ 10 MM for hydrocarbon and mining sectors.
Validity: 10 years. Concessions: Term according to the contract’s life (Max. 60 years).
With a steady tax regime, which main taxes are:
Tax Applicable Rate
INCOME
Corporate profits30%
Agriculture, agribusiness and aquaculture 15%
Dividends 4.10%Royalities 30%Interest rate on loans from abroad 4.99%
Value Added Tax (VAT) 19%
Financial Transactions Tax 0.06% throughout 2009
Temporal to net assets for more than S/. 1 000 000 0.40%
Special Regime of VAT Anticipated Recovery
BENEFITS Granting the return of the Value Added Tax during the pre-
productive stage of the project (minimum 2-year term). Applicable to all sectors of economic activity. For agricultural activity it is not necessary to meet a minimum
investment amount. For other activities the minimum investment amount is US$ 5 million.
The project can be divided by stages, phases, or similar levels.
and a reduced tariff structure and low tariff dispersion…
Source: Customs
TARIFF LEVELS ADVALOREM + SURCHARGES
TARIFF LINES
NUMBER PROPORTION (%)
0 3,952 53.79 2,616 35.5
17 792 10.8Total 7,360 100,0
SIMPLE AVERAGE APPLIED TARIFF RATE 5,0
STANDARD DEVIATION 7,7
Access to multiple markets
Ongoing agreements
Signed agreements
Negotiations underway
Planned negotiations
Russia
South Africa
EFTA
Singapore
European Union
Russia
Central America
United States
Canada
MERCOSUR ECA 58
AndeanCommunity
Mexico: ACE 8
A P E C
W T OKorea
Japan
CARICOM
Morocco
Thailand
ChinaChina
India
New Zealand
ECA PlusChile: ECA 38
Australia
* FTA
Peru has signed 32 International Investment Agreements, that underpin its liberalization policy.
Australia China Korea Malaysia Singapore* Thailand Japan
Argentina Bolivia Chile* Colombia Ecuador Paraguay Venezuela
Cuba El Salvador
Germany Belgium and Luxemburg Denmark Spain Finland France Nederland Italy Norway Portugal United Kingdom Check Republic Romania Sweden Switzerland
Canada* United States*
Investment Agreements
Source: World Economic Forum, Benchmarking National Attractiveness for Private Investment in LA Infrastructure. 2007
Position Country Points1 Peru 5.82 Colombia 5.63 Chile 5.54 Uruguay 4.85 El Salvador 4.66 Bolivia 4.57 Brazil 4.28 Dominic. Rep. 4.29 Mexico 4.1
10 Guatemala 4.011 Venezuela 3.212 Argentina 3.1
Peru is first in the region for government readiness for private investment in infrastructure
Recognition of a Favorable Investment climate
World Economic Forum
*Economc climate indexSource: Foundation of Getulio Vargas de Brasil
Position Country ICE*1 Peru 5.02 Brasil 4.63 Chile 4.34 Paraguay 3.95 México 3.76 Uruguay 3.37 Colombia 3.28 Ecuador 2.69 Bolivia 2.4
10 Argentina 2.011 Venezuela 1.6
Peru ranks first in the ranking of business climate in Latin America
Peru tops a global macroprudential indicator ranking
Position Country Points1 Peru 6.53 6 China 5.82 8 Switzerland 5.70 9 France 5.49
10 Netherlands 5.48 11 Mexico 5.43 17 Argentina 5.30 35 Brazil 4.78 39 Chile 4.66 41 Colombia 5.51 51 Venezuela 3.18
Source: World Economic Forum, The Financial Development Report 2009.
Getulio Vargas Foundation
INFRASTRUCTURE
Main Investment Opportunities by Sector
AgribusinessFisheries
& Aquaculture
Mining Textiles
Forestry
Tourism
Agribusiness
1st world exporter of asparagus, organic banana and organic coffee and 2nd of paprika.
Dry tropical weather and vertical sun radiation enhance crop productivity
• Highest world productivity in sugar cane.• Third highest world productivity in asparagus
and artichokes.
Specialized in high-value crops: fruits and vegetables.
Access to “seasonal windows” in the most important markets fetches higher prices for products.
5 million hectares of farm land. Optimum climate conditions in some areas allow crop scheduling.
Promotional regulatory framework including lower income tax rates
Source: PromPex, Adex Data Trade and Custom and FAO
-
400
800
1,200
1,600
2,000
2000 2001 2002 2003 2004 2005 2006 2007 2008
Agribusiness Exports(US$ Millions)
Non-Traditional
Traditional
United States29%
Germany10%
Spain9%Netherlands
8%
Belgium5%
Others39%
Agribusiness Exports by Markets, 2008
0
500
1,000
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Exports of main products(US$ Million)
Mango PaprikaAvocado GrapeArtichoke Asparagus
Fisheries& Aquaculture
Largest world exporter of fishmeal and fish oil.
Great hydro-biological wealth: 6 million MT of annual biomass for fishing (mainly anchovy).
Fast growing exports of products for direct human consumption : Frozen, canned and processed fish products.
Multiple species not yet entirely developed.
A long fishing coastline (3,080 km) and hundreds of lakes and lagoons ideally suited for continental and marine aquaculture.
Incentives for the aquaculture industry
Source: PromPex, Adex Data Trade and Custom
Scallops2%
King Prawn2%
Frozen fillets of
Hake1%
Frozen squid and
giant squiq5%
Fish oil16%
Fishmeal59%
Others15%
Fishing Exports, 2008
China35%
Germany8%
Japan7%
Spain6%
U.S.5%
Others39%
Exports by Markets, 20081,1311,1231,0561,026
1,381
1,6261,768
1,958
2,413
0
500
1,000
1,500
2,000
2,500
2000 2001 2002 2003 2004 2005 2006 2007 2008
Fishing Products Exports(US$ Millions)
Mining
Largest world producer of silver.
In Latin America: Leading producer of gold, zinc, tin and lead. Second producer of copper and molybdenum.
Practically all of the world’s multinational mining majors operate in Peru.
In 2008, mining exports exceeded $ 18.5 billion.
Announced investments over US$ 23 billion.
Only 10% of the country’s territory with mining potential has been explored.
High potential in non-metallic mining: borates, diatomite, bentonites, phosphoric rock and travertine, among others.
Excellent Competitive PositionMining Exports (US$ Millions)
Source: CEPAL, PromPeru, and MINEM
Mining Exports (In US$ Million)
Mineral 2007 2008 Var. %
Copper 7,241 7,663 5.8Gold 4,157 5,588 34.4Zinc 2,535 1,467 -42.1Lead 1,033 1,136 9.9Molybdenum 982 1,079 10.0Silver 537 595 10.7Tin 507 695 36.9Iron 286 385 34.8Others 51 48 -5.1Total 17,328 18,656 7.7
3,220 3,205 3,8094,690
7,124
9,790
14,735
17,32818,656
0
4,000
8,000
12,000
16,000
20,000
2000 2001 2002 2003 2004 2005 2006 2007 2008
Production Ranking 2008
Mineral Latin America WorldSilver 1 1Tellurium 1 3Zinc 1 3Tin 1 3Lead 1 4Gold 1 5Copper 2 3Bismuth 2 3Molybdenum 2 4
Textiles
Largest world producer of alpaca and vicuna fiber.
High quality of Peruvian Pima cotton.
Textile exports worth US$ 2,000 million.
Peru is garment supplier for renowned international brands.
Recognized quality as “full package” supplier of the best international brands of knitted cotton fabrics.
Source: Prompex and BCRP
Brands served by peruvian companiesAbercrombie & Fitch IzodAra Intersales JC PennyArmani Exchange Nassino DuttiCalvin Klein NauticaDonna Karan Inc. New BalanceDKNY LacosteDuck Head Appared Co. Kenneth ColeEddie Bauer Levy Strauss and Co.Guess OakleyInditex / Zara Palacio de HierroPolo Ralph Lauren RagmanPerry Ellis International ReebokThe Gymboree Corp. Vanity FairTommy Hilfiger Saks Inc.
Exports by country, 2008
Textile-Apparel Exports (In US$ Million)
0
500
1000
1500
2000
2500
2000 2001 2002 2003 2004 2005 2006 2007 2008
Textile fiberSpinningKnittingApparel
United States40%
Venezuela32%
Colombia3%
Chile3%
Italy2%
Others20%
Forestry
2nd largest natural forest area in Latin America (Amazon forest).
78.8 million hectares of natural forests and more than 10 million hectares of lands suitable for reforestation (plantations).
Great bio-diversity and high-commercial value timber:
Developing of tropical hardwoods in the rainforest and softwoods in the Andes.
Potential to export annually US$3 billion in timber and wood products.
Investment opportunities in lumber industrial compounds.
Source: ADEX Data Trade
Exports by Markets, 2008
Forestry Exports (US$ million)
Mexico33%
United Staes32%
China19%
Otros10%
Hong Kong2%
Italy2%Spain
2%
7887
114 109
136
169
215 213223
0
50
100
150
200
250
2000 2001 2002 2003 2004 2005 2006 2007 2008
Tourism
Machu Picchu among the New World Wonders.
An unsurpassed cultural destination featuring Inca and Pre-Inca civilizations’ archaeological sites.
Scenic diversity including natural attractions ranging from the Pacific Ocean beaches to the Amazon rainforests, through the snow-caps of the Andean Mountain Range.
A great diversity of ecosystems. Peru boasts 84 of the planet’s 114 life zones.
Vast flora and fauna, for its 1,730 bird species, 330 species of amphibians, 462 species of mammals, and 25,000 plant species (including 4,000 species of orchids).
Rich gastronomy. Lima has been acknowledged as the culinary capital of Latin America.
Tourist Arrivals, 2008Main origin regions
Source : MINCETUR
Tourist Arrivals(Thousands of persons)
Foreign exchange earnings generated by tourism (US$ million)
998 1,0701,277
1,4871,635
1,8121,949
0
500
1000
1500
2000
2500
2002 2003 2004 2005 2006 2007 2008
8371,023
1,2321,438
1,7752,007
2,395
0
500
1000
1500
2000
2500
3000
2002 2003 2004 2005 2006 2007 2008
South America
48%
North America
23%Europe
21%
Asia5%
Others2%
Central America
1%
Investment Opportunities
*Investment figures estimates September 2009
ProInversion’ s Investment Portfolio*
SECTOR ESTIMATED INVESTMENT (US$ MM)
Energy 960Hydrocarbons 1,300
Hydro-energy and Irrigation 1,309Telecommunication 372Ports 306Airports 237Sanitation 145Land Transport 60Trains 11Tourism 11Total 4,711
PROJECTESTIMATED
INVESTMENT (US$ MM)
AWARD
Zapallal-Trujillo T.L. 250 11.06.09Chilca – Marcona – Caraveli T.L (500 kV) 300 12.17.09Natural gas Power Thermal Plant of combined cycle of 140 MW in Quillabamba – Cuzco 120 To be defined
Tintaya – Socabaya T.L. (220 kv.) and associated sub-stations 50 II Q 2010
Strengthening of the North System with a second transmission circuit of 220 kv. between Talara and Piura. 22 II Q 2010
Pomacocha – Carhuamayo T.L. (220 kV) and associated sub-stations 18 To be defined
Cold reserve of generation ( 2 x200 MW, dual thermal plants in the north (trujillo ) and in the South (Ilo) 200 To be defined
Total Estimated Investment of projects in portfolio 960
Investment Opportunities in Energy
D E S C R I P T I O N
Trujillo
Zapallal
Zapallal-Trujillo T.L.
Transmission Line in 500 Kv
Description: To grant in concession the design, financing, construction, operation and maintenance of Zapallal – Trujillo T.L.
• Estimated Investment: US$ 250 million
• Concession period: 30 years plus the construction period (30 months).
• Competition factor: the lowest Service total cost (annual investment fort 30 years and rate of 12% plus the operation and maintenance cost)
Current Process Status:
The operators short listing concluded and approved the final version contract. There are five bidders in the concession process
• Award date: November 6, 2009
D E S C R I P T I O N
Chilca – Marcona – Caravelí Transmission Line:(500 kV)
S.E. Marcona
S.E. Caravelí
S.E. Chilca
Chilca-Marcona-Caravelí T.L
Description: To grant in conession the design, financing, cosntruction, operation and maintenance of Chilca Marcona – Caravelí T.L.
Estimated Investment: US$ 300 Million
• Concession period: 30 years plus the construction period (30 months)
• Competition Factor: the lowest Service total cost (annual investment fort 30 years and rate of 12% plus the operation and maintenance cost)
Current Status:
Time line to submit a qualification request November 24, 2009
Award date: December 17, 2009
Cold reserve of generation (2 x 200 MW, dual thermal plants)
D E S C R I P T I O N
Location : North (Trujillo) and South (Ilo). Description: Dual thermal plants (diesel and natural gas)
of 200 MW each, in order to increase the thermal reserve in the National Interconnected System, these will be used in a emergency generation. These plants will have power guarantees in order to cover the investment, the operator is not allow to subscribe contracts of energy sales and when operation starts up, the system will pay them their variable expenses.
• Estimated Investment: US$ 200 million.• Concession period: 15 - 20 years.• Competition factor: Lower payment
Current process status: Legal framework adequacy is pending
Award date: 2010
PROJECTESTIMATED
INVESTMENT(US$ MILLION)
AWARD
Chimbote gas pipeline (natural gas) 1300 To be defined
Natural Gas Distribution System in the regions of Ayacucho, Junin and Ancash. To be defined To be defined
Natural Gas Distribution System for the cities of Quillabamba, Cuzco, Puno, Arequipa, Moquegua and Tacna.
To be defined To be defined
Total Estimated Investment of the defined projects 1,300
Investment Opportunities in Hydrocarbons
Location: Central highlands /North middle coast.
Description: To design, finance, build and operate a natural gas transportation system to supply the cities of Ayacucho, Huancayo, La Oroya, Tarma y Chimbote.
• Estimated Investment: US$1.300 million Concession term: 30 years plus the construction period ( 40 – 48 months)
• Competition factor: Lowest gas transportation service cost.
Modality: Comprehensive project bid.
Current process status: The availability of the Natural Gas by the producer (Camisea) is pending.
Award date: 2010.
Gas pipeline to Chimbote (Natural Gas)
D E S C R I P T I O N
PROJECTESTIMATED
INVESTMENT(US$ MM)
CONCESSION AWARD
MajesSiguas
II
Water consolidation 344 December, 2009
Hydropower Component 700 To be defined
Land Auction in the sector of Pampa Baja Public Auction To be defined
Land Auction in Pampas de Siguas
Public Auction To be defined
Chavimochic Project(1st component – 3rd Stage) 265(*) To be defined
Total estimated investment (US$ MM) 1,309
(*) Project is currently under evaluation by Ministry of Economy and Finance
Investment Opportunities in Irrigation and Hydro-energy
Majes-Siguas II Project: Water Consolidation
*Amount to be decided with the Ministry of Economy and Finance.
D E S C R I P T I O N
Location: Arequipa region, Caylloma province Description: This component includes building, operating
and maintaining the Angostura dam and the Angostura-Colca derivation tunnel, in addition to water carrying and distribution works to provide irrigation water for 38,500 hectares in Pampas de Siguas. Estimated investment: US$ 344 million plus VAT Concession Term: 20 years (including 4 years of
construction and 16 years for operation) Competition factor: Lowest unit remuneration per
cubic meter of irrigation water and less co-financing amount required by State.
Type of concession: Co-financing. The State will grant a co – financing amount of US$ 140M approximately, plus an annual guarantee of US$ 28.2 M during 16 years.
Modality: BOT concession. Current process status: Five bidders have already qualified
and are able to present their offers. Award Date: December, 2009
D E S C R I P T I O N
Chavimochic Project (1st component – 3rd Stage)
Location: La Libertad Region Description: Development of the first component of the third
stage of Chavimochic project to assure the watering for permanents farminigs in the valley areas and inter valleys of Caho, Virú and Moche. The concessionaire must build a reservoir (Palo Redondo) which will allow to storage the water of Santa River in order to supply the main existing channel so this can provide a regular watering in 60, 000 has.
The regional government of La Libertad will carry out complementary works: such as the upgrading of the water inlet to assure the storage of Santa River water and the construction of a second siphon in Viru River for transfering the water through Viru river´s and up to Moche River valley.
Estimated investment: US$ 265 million. Concession type: Co- financing. Current process status: Is currently under evaluation by the
SNIP – MEF for its feasibility. Award Date: To be defined
Investment Opportunities in Telecommunications
PROJECTESTIMATED
INVESTMENT(US$ MM)
ESTIMATEDFINANCING(US$ MM)
AWARD
Rural broadband Juliaca – Pto Maldonado 6 8.5 11.05.2009
Broadband for VRAE development 8.3 10.8 12.02.2009
Broadband Camisea – Lurín
Integration of telecommunication services Buenos Aires – Canchaque 7.2 9 12.23.2009
C 1900 MHz Band 350 -- To be defined
Total estimated investment (US$ MM) 372.4
Juliaca - Puerto Maldonado Rural Broadband
D E S C R I P T I O N
Geographical location: Puno and Madre de Dios region (Southeast).
Public services: Public telephony for subscribers and public telephones, carrier services, and added value (Internet access) for 370 towns. Thorough the use of optical fiber installed through the electric transmission network.
Estimated investment: US$ 6 million Maximum estimated financing: US$ 8.5 million Modality: Public bid. Type of concession: Co-financing. The project will have a non-
reimbursable financing provided by FITEL. Competition factor: the lowest subsidy requested to the State. Submission date of Envelopes N°2 and N°3 and opening of
Envelope N°2: Tuesday, October 27, 2009 Award Date: November 5, 2009
VRAE BroadbandCamisea – Lurín Broadband
Scope: Lima, Ayacucho, Apurímac, Ica, Junín, Cusco and Huancavelica regions.
Utilities: Public telephony for subscribers and pay phones, carrier services, value added (internet connectivity) for 776 towns; it is foresees that the services implementation will be done through the optical fiber capacity installed along the Camisea gas pipeline and in combination with the land satellite and wireless links in order to provide the service fort he selected towns in the project area.
Estimated investment: US$ 8.28 million. Estimated financing: US$ 10.83 million. Modality: Public bid. Type of concession: co – financing. The project will have a non-
reimbursable financing provided by FITEL Competition factor: Lowest government subsidy requested. Current process status: The call for bidders have been made.
The Tender documents are published in ProInversion’s web site. The deadline to submit Envelope N°1 (short listing). Will be announced by Circular Letter.
Award date: To be defined
D E S C R I P T I O N
Implementation of Telecommunication Integrated Services Buenos Aires - Canchaque
Scope: Region of Piura. Public Services: Public telephony in 536 towns, subscribers
telephony in 201 towns, and internet access in 249 towns. The towns benefited total 683, a population of 342 inhabitants located in Piura, Sullana, Ayabaca and Huancabamba provinces will be benefited.
Estimated Investment: US$ 7.2 million Estimated Financing: US$ 9 million Process modality: Public Bid Concession type: Co-financing. The project will have a non-
reimbursable financing provided by FITEL. Competition factor: Lowest financing requested to FITEL Current status: The Call for tenders have been made. The Tender
documents are published on Proinversion’s web site. The submission date of Envelope N°1 is schedule up to 15 calendar days previous to reception of Envelopes N° 2 and N° 3.
Reception date of Technical and economic proposal: December 14th, 2009
Award date: December 23th, 2009
D E S C R I P T I O N
D E S C R I P T I O N
25 MHz in the 1900 MHz C band
Geographical location: Nationwide. Description: the concession of Public telecommunication
services. Referential investment amount: US$ 350 million Term of concession: 20 years, renewable. Competition factor: Highest economic proposal value
• Economic proposal: comprises the concession fee equal or over the base price.
• Base price: US$ 14.8 million• Concession fee payment: Payment of the total
amount offered upon contract signing. Type of process: Special public bid. Type of concession: Onerous title, comprised of payment of
concession fee. Current Process Status: The short listing stage was reopening
until November 30, 2009 Award Date : To be defined, according Circular Letter.
PROJECTESTIMATED
INVESTMENT(US$ MM, no V.A.T.
included)CONCESSION AWARD
San Martin (Pisco) P.T 107.8 12.18.09
Pucallpa P.T 14.7 IV Q 2009
Salaverry P.T. 124.1 To be defined
Yurimaguas P.T 46.0 To be defined
Iquitos P.T 13.2 To be defined
Ilo P.T To be defined To be defined
Total estimated investment (US$ MM) 306
Investment Opportunities in Ports
General San Martín – Pisco Port Terminal
D E S C R I P T I O N Location: Ica Region – province of Pisco. Description: The project comprises the design,
construction, financing, maintenance and exploitation of General San Martín –Pisco Port Terminal.
Estimated investment US$ 107.8 million* (taxes are not included) The investment amount included the minimum initial investment (multifunctional mooring berth: US$ 60.8 million) and the investments subject to the demand (specialized mooring in bulks: US$10.1 million to 3 million Ton/ year and dock of containers: US$36.1 million to 100 thousand TEUs/year*), per stages. • Concession period: 30 years.
Modality : Comprehensive Project bid. Current status: The second contract project was sent.
The delivery of the third contract project was extended. Meeting with the interested bidders is currently been developed. Envelope N°1 (short– listing documents) will be accepted up to November 13, 2009.
Award: December 18, 2009 If the established demand level of 100 thousand TEU/year is reached in the first 20 years of concession.
D E S C R I P T I O N
Pucallpa River Port
Location: Banks of Ucayali river in Callería district, Coronel Portillo province, Ucayali region.
Description: The project comprises the design, construction, financing, maintenance and exploitation of Pucallpa Port Terminal. The Dredging and maintenance of waterways works will be done by MTC. Estimated minimum investment (VAT not included): US$ 14.07 MM* .Concession term: 15 years but this can be extended up to 30 years.
Modality Co-financed concession. Two payment commitments by the grantor: i) Payment per Works, amount allocated to cover requested investments; and ii) Annual maintenance and operation payments (PAMO) regarding the latter, the payment by MTC will correspond to the difference between annual collection of the concessionaire for regulated services that yield less than the corresponding annual maintenance and operation payment (PAMO)
Current Status: The second contract version of the concession process was sent. The process is temporarily suspended waiting for possible amendments to referential project and the concession area by the APN.
Award Date : To be defined.* Taxes are not included
Salaverry Port Terminal
Location: La Libertad – Trujillo province. Description: the project comprises the design,
construction, maintenance and exploitation of the port terminal. Estimated investment: US$ 124.1 million, taxes
are not included* Modality: Comprehensive project Bid. Self-
sustaining. Current status: To be called
The referential project was approved and sent by APN.
The Port Development National Plan must be modified (APN –MTC)
Based on the PNDP amendments the Promotion plan and the Tender Documents will be modified, to make the call for tenders.
Award Date: To be defined.
D E S C R I P T I O N
* According to the referential project sent by APN
Yurimaguas Port Terminal
Location: left bank of Huallaga river, locality of Yurimaguas , 20 kilometres downstream from the current port.
Description: The concession comprises the design, construction, partial financing, maintenance and exploitation of the new Yurimaguas P.T. located in the locality Nueva Reforma. the construction of a highway of 9.4 km long approximately is required to have access and this one will be have a connection with Tarapoto-Yurimaguas highway, also the construction of a bridge over Paranapura river of approximately 100 m long is required.Dredging and maintenance of waterways works by MTC.
• Estimated Investment: US$ 46.5 MM, taxes are not included• Concession period: 30 years maximum
Modality: Co- financed Current status: To be called
The declaration of viability of the Feasibility Study by the OPI and MTC is pending.
Award date: To be defined
D E S C R I P T I O N
D E S C R I P T I O N
Iquitos Port Terminal
Location: Itaya river, 2 km upstream of its merging with the Amazon river, in Iquitos city, Maynas province in Loreto department.
Description: The project comprises the modernization, partial financing, maintenance and operation of the Iquitos river port.
Dredging and maintenance of waterways works by MTC.
Estimated investment (inc. VAT): US$ 13.2 MM* taxes are not included
Concession term: to be defined, not over 30 years. Modality: Co-financing Award date: to be defined
*Amount according to the Referential Project, approved in August by the OPI of the MTC and sent by the APN at the same time.
PROJECTESTIMATED
INVESTMENT(US$ MM)
CONCESSION AWARD
Regional Airports-Second Group:1. Tacna2. Juliaca3. Arequipa4. Puerto Maldonado5. Ayacucho6. Andahuaylas
237 November 30, 2009
Total estimated investment (US$ MM) 237
Investment Opportunities in Airports
Regional Airports-Second Group
D E S C R I P T I O N
APURIMAC
AREQUIPA
AYACUCHO PUNO
MADRE DE DIOS
TACNA
Description: The project consist of establishing a Public – Private Partnership, and comprises the designing, construction, financing, operation, maintenance and the development of regional airports located in the south of Peru (Tacna, Juliaca, Arequipa, Puerto Maldonado, Ayacucho and Andahuaylas). Estimated Investment: US$ 237 million Concession Term: 25 years. Term may be
extended at Grantor's judgment. Competition factor: Lowest co-financing amount
requested for operation and maintenance (PAMO), and lowest amount for mandatory investments, executed the first three years. (PPO)
Modality: Government co-financed concession. Current process status: the deadline to submit a
qualification request is October 2, 2009 Award date: November 30, 2009.
PROJECTESTIMATED
INVESTMENT(US$ MM)
CONCESSION AWARD
La Chira Wastewater Treatment Plant and Submarine outfall 145 To be defined
Total estimated investment (US$ MM) 145
Investment Opportunities in Sanitation
Geographic location: Near La Punta La Chira, south of Lima, district of Chorrillos.
Description: Design, financing, construction, operation and maintenance of a waste water treatment plant.
Capacity: 6.3 m3/seg in average. Maximum per
hour: 11.3 m3/seg.• Technology: Can be accomplish through different
technologies and/or process treatments and the effluent final disposal, by means of a submarine emissary infrastructure.
• Approximate investment: US$ 145 million (value added tax are included)
Modality: Concession. Term: 25 years. Current process status: Process is currently in Tender
D E S C R I P T I O N
La Chira Wastewater Treatment Plant and Submarine outfall
PROJECTESTIMATED
INVESTMENT(US$ MM)
CONCESSION AWARD
Huancayo – Huancavelica Train 11 IV Q 2009
The Special project Lima Callao Mass Transport Electric System in section of Line 1 To be defined March 2010
Investment Opportunities in Railways
D E S C R I P T I O N
Huancayo – Hucancavelica Train
Location : Junín and Huancavelica region. Description: project comprises the operation,
administration and maintenance of its infrastructure, upgrading and acquisition of rolling material and the supervision of the development of the service( passengers and cargo). Estimated Investment: US$ 11 million Concession Term: 15 years. Competition factor: the lowest economic proposal
fulfill by the grantor. 1) Investments (PPI) and, ii) operation and maintenance (PAMO – annual). Additionally, the highest collection in passenger transportation.
Modality: Comprehensive project bid. Type of concession: Co-finance Current process status: The final draft contract is under
elaboration Award date : 4th quarter of 2009.
D E S C R I P T I O N
Line 1, Villa El Salvador – Av. Grau Extension, Lima and Callao Massive Transportation Electric System Special Project Concession
Location: Lima Description: This project crosses 08 districts of
Metropolitan Lima. Its route starts in Villa El Salvador and ends in Av. Grau. It comprises the construction of the main Maintenance Workshop for the new and existing trains in the second level of the Workshop Yard, provision of rolling material, operation and maintenance. • Estimated investment: To be defined• Concession term: 30 years• Competition factor: To be defined
Modality: Comprehensive Project Bidding. Current Status: On September 2, 2009 the Call for Tenders
was made. Award date: 1st quarter 2010
PROJECTESTIMATED
INVESTMENT(US$ MM)
CONCESSION AWARD
IIRSA Amazon Axis – Center Branch (Section 2) 60 To be defined
Investment Opportunities in Land Transportation
IIRSA Amazon Hub – Center Branch
D E S C R I P T I O N
(*) Investment to be defined
AXIS IIRSA CENTER, total extension of 871 km approximately and cross the regions of Lima, Junín, Pasco, Huánuco and Ucayali. In order to facilitate the concession, it has been divided in 3 sections.
Section 1 Ramiro Prialé - Puente Ricardo PalmaSection 2 Pte. Ricardo Palma - La Oroya
La Oroya– Huancayo, La Oroya – Dv. Cerro de Pasco
Section 3 Dv. Cerro de Pasco – Pucallpa
INITIALLY, SECTION 2 WILL BE GRANTED IN CONCESSION Description: the section has an approximately 400 km long, the
upgrading and rehabilitation works will be executed, operation and maintenance works will be done during the concession period. Details of process execution are to be defined
Estimated Investment: US$ 60MM (*) approximately, operation and maintenance expenses are not included.
Concession period : No less than 25 years. Competition factor: To be defined. Modality: self- sustaining . Current status: The process is expected to be call during October 2009. Award date: To be defined
PROJECTESTIMATED
INVESTMENT (US$ MM)
CONCESSION AWARD
San Martín Former Militar Barracks Public Auction IV Q 2009
San Lorenzo Island To be defined I Q 2010
Lobitos Camp Public Auction I Q 2010
Cable car system to access Kuelap 10.6 I Q 2010
Total estimated investment (US$ MM) 10.6
Investment Opportunities in Tourism and Real Estate
San Martín Former Military Barracks
Location: Miraflores district, Lima province and department.
Description: Private investment in a 68,400.00 m2, property located in one of Lima’s most attractive areas, close to the sea and near the city’s best hotels and restaurants and within easy access to the Costa Verde sea resort.
Modality: to be defined. Proposed use: convention centers, business
center,hotels, shopping centers ( all high standar and international level).
Current Status: In order to have the urbanistic parameters and the property relocation we are in coordination with the Municipality of Lima.
Award Date: 4to quarter 2009.
D E S C R I P T I O N
Av del Ejercito
Paul HarrisCa
lle Po
lar
San Lorenzo Island
D E S C R I P T I O N
Location: San Lorenzo Island
Description: The transaction is comprised of :
Award of 400 Ha in San Lorenzo Island: Aim to real estate, commercial and tourism development of the area.
Bridge concession: Designing, financing, constructing, equipping and operating a bridge which connects Callao’s West coast to San Lorenzo Island
Estimated investment: to be defined Concession Term: to be defined Award date: I Quarter, 2010
(*) Investment to be defined
Lobitos Beach
D E S C R I P T I O N
Location: Region of Piura, Province of Talara, District of Lobitos.
Description: Tourist project development in a lot 63.56 has, with 1800mts approximately of land facing the sea.
Tourist complex composed by a group of hotels and vacation rental homes. All those would be served by a local mall. It is considered to keep the wharf of handcraft fishing and its service unit.
Investment amount: To be defined
Bid: 1st quarter of 2009.
Kuelap Cable Car
D E S C R I P T I O N Location : Amazonas
Project Description : The design, financing, construction, equipment and cable car system operation. Its objective is to provide an easy, fast and modern access to Kuelap. The cable cars would cover a distance of 3,800 m., covering the difference of 965m height between the localities of Tingo and Fortaleza.
Concession Term: 20 Years
Estimated Investment: US$ 10 .6 MM
Award Date : 1st quarter of 2010.
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