INVESTMENT OPPORTUNITIES IN PERU

1. Internationally acknowledged macroeconomic soundness

WHY INVEST IN PERU?WHY INVEST IN PERU?

2. Friendly investment environment

3. Open trade and market access policy

4. Attractive sectors to Invest

1.1. MACROECONOMICMACROECONOMIC SOUNDNESSSOUNDNESS

Peruvian economy rise rapidly in the last decade …

Real GDP 1952-2011 (aver annual var. %)

Source: Central Reserve Bank of Peru, Ministry of Economy and Finances and IMF

Real GDP, 2002-2012(Variation %)

GDP , 2002-2012(USD thousands of million )

ESTABILIDAD MACROECONÓMICA

Source: Central Reserve Bank of Peru and Ministry of Economy and Finance * Preliminary figure

1. MACROECONOMIC STABILITY1.1. MACROECONOMICMACROECONOMIC SOUNDNESSSOUNDNESS

Economic growth has been driven by rising private investment….

Private Investment 2002-2012 (Annual average variation %)

Private Investment 2002-2012 (US$ Billion)


…… today represents almost 22% of GDP ….

Total investment 2002-2012 (% of GDP)

Source: Central Reserve Bank of Peru Source: International Monetary Fund and Central Reserve Bank

Total investment – LATAM 2012 (% of GDP)

Peru Chile Mexico Argentina Colombia Brazil

26.7

24.125.1

22.9

25.8

21.6

19.518.417.917.817.6

Public Investment

Private Investment


… Peru is an attractive market for foreign investment, which Register a 12,000 millions in 2012

Source: Central Reserve Bank of Peru (BCR)

Foreign direct investment flow 2002 - 2012(US$ Billion)

Foreign direct investment – LATAM 2012 /1

(% GDP)

Source: IDB 1/ Peru and Chile are closing figuresSource: BCR and Central Reserve Bank of Chile

ESTABILIDAD MACROECONÓMICA

Source: Central Reserve Bank of Peru

1. MACROECONOMIC STABILITY1.1. MACROECONOMICMACROECONOMIC SOUNDNESSSOUNDNESS

Complemented with a dynamic international trade…Balance of Trade 2002-2012 (US$ million)

Exports

ImportsTrade Balance

... all, in a frame of macroeconomic stability, Peru registers the lowest inflation rate in the region…

CPI in Latin America: 2001-2012 (Annual Variation %)


Source: Central Bank of Reserve of Peru, Ministry of Economy and Finances, CEPAL* Preliminary figures

CPI – Latino America 2002- 2011(Annual Average Variation %)

CPI – Latin America: Projections up to 2013 (Annual Average Variation %)

Venezuela Argentina Brasil Colombia Mexico Chile Peru

Peru Chile Colombia Mexico Brasil Argentina Venezuela

Peru maintains a healthy level of debt…

Public Debt– Peru 2002-2012(% of GDP)


Source: Central Bank of Reserve of Peru

Public Debt– Latin America 2012(% of GDP)

Source: FMI. Cifra de Perú, Source BCRP


Net International Reserves(US$ Billion)

As of February 15, 2013Source: Central Reserve Bank of Peru

Net International Reserves – Latin America 2012(% GDP)

...and has accumulated international reserves for a third of the GDP

Non discriminatory treatment: Foreign investors receive the same treatment as local investors.

Unrestrictive access to most economic sectors *. 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 participates in the Investment Committee of the Organisation for Economic Co-

operation and Development (OECD) – It promotes the implementation of the Guidelines for Multinational Enterprises.

*Investments that require authorization: Located within 50 km in the frontier line and those destined to arms, ammunitions and explosive. Likewise, a principal local partner for investments in maritime cabotage as well as in air transport is required.

2.2. FRIENDLY INVESTMENT ENVIRONMENTFRIENDLY INVESTMENT ENVIRONMENT

Peru offers a favorable legal framework for foreign investment:

Peru ranks second in the region in the improvement of business regulations.

.

Doing Business 2013

2.2. FRIENDLYFRIENDLY INVESTMENTINVESTMENT ENVIRONMENTENVIRONMENT

Continuous effort to facilitate the establishment and operation of business

Position Country

1 Chile

2 Peru

3 Colombia

4 Uruguay

5 Paraguay

130

155

89

124

164

114

45

139

37

43

180

Argentina

Uruguay

Bolivia

Brazil

Surinam

GuyanaVenezuela

Colombia

Peru

Chile

Ecuador

103Paraguay

Peru has signed and currently in force Agreements for the Promotion and Reciprocal Protection of Investment and Trade Agreements of further scope that includes investment chapters that underpin our 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 Netherlands Iceland* Italy Liechtenstein* Norway Portugal United Kingdom Czech Republic Romania Sweden Switzerland*

Canada* United States*

* Trade agreements

Investment Agreements

It has also signed agreements to avoid double taxation with Andean Community, Brazil, Chile and Canada.

2.2. FRIENDLYFRIENDLY INVESTMENTINVESTMENT ENVIRONMENTENVIRONMENT

3.3. OPENOPEN TRADETRADE ANDAND MARKETMARKET ACCESSACCESS POLICYPOLICY

An open trade policy sustained over time

Evolution of nominal tariff, effective and dispersal 1993 – 2013

Notes: 1) Affective Tariff= (Amount of total revenue Avaloren CIF / Total Amount of CIF Imports)*100.2)Tariff Dispersion= Standard Deviation

Agreements in force

Working to become a globalized economy, with preferential access to the world’s largest markets

Agreements under negotiations

These countries stand for enlarged market of over 4

billion people with a joint GDP over

US$ 56 billion

96% of Peruvian exports

Agreements to become effective

3.3. OPENOPEN TRADETRADE ANDAND MARKETMARKET ACCESSACCESS POLICYPOLICY

16

AGROINDUSTRYLands with world-leading returns.It is projected that 90,000 ha for agricultural exports will double in 3 years.

FISHING – AQUACULTURELong fishing coastline (3,080 Miles) and “waters mirrors” which offer favorable conditions for the development of marine and inland aquaculture.

TOURISM

Important cultural destination, great potential for ecotourism and adventure tourism with 8 prioritized destinations.

MININGA polymetallc mining country. Peru is one of the most important metal reserve worldwide. 13.6% of the land is subject to mining concessions, and only 1.1% of the land is taken for mining exploration and explotation

TEXTILE - CLOTHINGRecognized quality of pima cotton.1st worldwide producer of South-American camelid fiber: alpaca, vicuña.“Full package" producer.

REAL STATE

The housing deficit affects to 25% of households (over to 2 million). There are various financing house programs

FORESTPresence of high biologic diversity and high value timber.78.8 million ha of natural forest.

TECHNOLOGY SERVICESThe lowest labor costs per operator, US$ 270, in Latin America, which accounts for 60% of operating costs in call centers.

ENERGYGreat energetic potential: Ample availability of water resources and natural gas have allowed to meet the growing electricity demand.

PETROCHEMICALPeru is the only sustainable source of natural gas in the South American Pacific area.Peru has oil fields that have not been explored yet (26.6 million ha).

Peru offers a wide range of investment opportunities

4. ATTRACTIVE SECTORS TO INVESTATTRACTIVE SECTORS TO INVEST

PROJECTS PORTFOLIO

Location: Cajamarca and La Libertad.

Cities: Ciudad de Dios, Cajamarca, Chiple and Trujillo

Description: The project comprises the initial regular maintenance (460 km), rehabilitation and upgrading works (90km) and the operation and maintenance of all the Section in order to obtain the required level of service.

Approximated length of 875 km.

Estimated investment*: US$ 552million

Type of concession: Co-financed

Competition factor: The lowest payment for Rehabilitation and maintenance (PRM), initial regular maintenance annual payment (PAMPI) and maintenance and operation annual payment (PAMO) that the concessionaire is willing to offer based on the maximum amount set by the State.

Concession Term: 25 years

Current status: The final version of the contract is published on Proinversion’s web site.

Estimated award date: IV QT 2013.

ROAD CONCESSIONS: LONGITUDINAL DE LA SIERRA ROAD PROJECT, SECTION 2: Ciudad de Dios - Cajamarca - Chiple, Cajamarca - Trujillo y Dv. Chilete - Empalme PE-3N

CALLED

* VAT not included

Location: Junín, Huancavelica, Ayacucho and Apurímac.

Cities: Huancayo – Izcuchaca - Mayocc and Ayacucho ,

Description: The project comprises the rehabilitation and the upgrading works (117 km), regular initial maintenance (160 km) and operation and maintenance of all the Section, in order to obtain the required level of service.


Estimated Investment*: US$ 250 million


Current status: To be called the III QT of 2013. Estimated award date: II Q 2014.

ROAD CONCESSIONS: LONGITUDINAL DE LA SIERRA ROAD PROJECT, SECTION 4:

TO BE CALLED

* VAT not included

Location: Cusco, Apurimac and Puno.

Cities: Urcos – Combapata - Calapuja and Sicuani, Puno - Ilave and Desaguadero.

Description: The project comprises the regular initial maintenance, and operation and maintenance of all the Section, in order to obtain the required level of service.


Estimated Investment*: US$ 127 million


Current status: Proinversion requested to the Ministry of Transport and Communication update of the Evaluation report.

Estimated award date : III QT 2014.

ROAD CONCESSIONS: LONGITUDINAL DE LA SIERRA ROAD PROJECT SECTION 5:

TO BE CALLED

* VAT not included

LEYENDA

Ferrocarril CentralFerrocarril Huancayo HuancavelicaFerrocarril Sur

Location: Departments of Junín and Huancavelica.

Description: The project includes the execution of the following works along the 128 Km of the existing track lines:

Railway upgrade Changes to the tracks in critical sectors Purchase of rolling stock Reinforcement of 15 railway bridges Extension of 38 tunnels for standard gauge rolling stock (1,435

mm) Upgrades to the signaling and telecommunication systems Draining works

The project includes the interoperability with Ferrocarril Central (railway service with standard gauge of 25 ton per axle) for the connection of high Andes regions with the port of Callao and the Santa Anita Market. The project has a great agricultural and mining potential.

Estimated investment*: US$ 150 million

Type of concession: Co-financing

Concession Period: 30 years

Current project status: Proinversión is currently waiting for the disbursement of funds to announce the public bid for the preparation of pre-investment studies and transaction advisor.

Estimated date of award: II QT 2014

HUANCAYO - HUANCAVELICA RAILWAY

TO BE CALLED

* VAT not included

SUPPLY SYSTEM OF LNG FOR DOMESTIC MARKET

Location: Lima.

Description: The project comprises the concession to design, finance, build, operate and maintain a supply system that includes:

A reserve tank of liquid natural gas at or near the gas liquefaction plant of Pampa Melchorita (170 km south of Lima).

Equipment's for re-gasification and dispatch natural gas for users in Lima and Callao in case of emergency situations. With a capacity of 130 MM cubic meters to supply the consumption for 7 days.

Estimated Investment *: US$ 250 million. Type of concession: Self-sustained. Concession term: 20 years plus the build period (30

months). Competition factor: Directed related to the investment

to be executed.

Current status: The second version of the contract is under process.

Estimated award date : IV QT 2013.

CALLED

* VAT not included

220 KV LA PLANICIE INDUSTRIALES TRANSMISSION LINE

* VAT not included

Location: District of La Molina

Description: The project comprises the concession to design, finance, build, operate and maintain of a transmission line 16.6 Km long, and two circuits with a capacity of 400 MVA each. The final 5 Km of the line will be underground.

Estimated investment*: US$ 56.6 million.Type of concession: Self-sustained Concession period: 30 years plus the construction period (22 months). Competition factor: Less Costs of Total Services as of the date of submission of the Proposal.

Current project status: To be called.

Estimated date of award: I QUARTER 2014.

TO BE CALLED

Location: Huancavelica, Ayacucho and Junin.

Description: The project comprises the concession to design, finance, build, operate and maintain of a transmission line with an approximated length of 90.5 Km long and capacity of 152 MVA.

Estimated investment*: US$ 43.5 million (line: US$30.8 million; substation: 12.7 US$ million) Type of concession: Self-sustained Concession period: 30 years plus the construction period (estimate: 32 months). Competition factor: Less Costs of Total Services as of the date of submission of the Proposal.

Current project status: To be called.

Estimated date of award: I QUARTER 2014.

220 KV FRIASPATA – MOLLEPATA TRANSMISSION LINE AND ORCOTUNA 220/60/13.8 KV SUBSTATION

* VAT not included

TO BE CALLED

JUNÍN

HUANCAVELICA

AYACUCHO

ENERGY SECURITY AND SOUTHERN GAS PIPELINE

Location: Cusco, Arequipa and Moquegua.

Description: The project comprises the concession to design, finance, build, operate, maintain and transfer of a natural gas distribution system. Includes the following components:

Reinforcement works of the of liquid and natural gas transport system. Includes strenghthening of pipelines from the separation plant of Malvinas to the compression station at Chiquintirca.

Construction of natural gas pipelines and/or liquid gas pipelines from the existing natural gas transport system (between Malvinas and Chinquintirca) to Anta (Cusco region) able to supply natural gas to the future thermal plant of Quillabamba and south coast of the country.

Construction of the Southern region gas pipeline from Anta to south coast of the country.

Estimated Investment*: US$ 2 431 million Type of concession: Self-sustained Competition Factor: The lowest cost per transport

service

Current status: Enquires to the Bidding Documents.

Estimated award date: I Q 2014

CALLED

* VAT not included

Chiquintirca

Camisea

Anta

Quillabamba

Ilo

PUNO

AREQUIPA

TACNA

CUSCO

Puerto Matarani

Malvinas

MOQUEGUA

ENERGY NODE IN THE SOUTH OF PERU

CALLEDLocation: Arequipa and/or Moquegua.

Description: This project comprises the construction of two thermal plants of 500 MW each (+/- up to 20% of capacity). They will initially operate with Diesel b5 and then with natural gas once this is available in the southern coast of Peru. Project 1 to be nominally 500 MW (+/- 20%), to be commissioned on

or before May 1, 2016. Term of the Project to be 20 years starting with first day of operation.

Project 2 to be nominally 500 MW (+/- 20%) to be commissioned on or before March 1, 2017. Term of the Project to be 20 years starting with first day of operation.

Type of concession: It will be carried out in the framework of L.D 674, through the following Agreements: Investment Commitment. Take or Pay. Ship or Pay. Power Purchase Agreements (PPA).• Estimated Investment (VAT not included): US$ 800 Million.• Competition Factor: Lowest price per installed capacity.

Current status: Enquires to the Bidding Documents.


NEW INTERNATIONAL AIRPORT OF CHINCHERO – CUSCO

Location: Chinchero and Huayllabamba districts, Urubamba Province , Cusco Region.

Description: The project comprises the concession to design, build, finance, operate and maintain the new international airport of Chinchero – Cusco.

Estimated investment*: US$ 556 million Type of concession: Co-financed Competition factor: To be defined Concession term: 40 years Current status: The pre investments studies

on profile level are published on Proinversion’s web site.


CALLED

* VAT not included

PACIFIC OCEAN

GENERAL SAN MARTÍN PORT

Location: Pisco, Ica Region.

Description: The project comprises the concession to design, build, finance, maintain and operate the General San Martin port. The initial works comprises.

Dredging up to reach a depth of until -14 m Multipurpose-berth A storage yard to receive freight and other cargos Support facilities Energy Interconnection 2 mobile cranes Yard equipment Other equipment for general cargo

Estimated investment*: US$ 101 million Concession term: 30 years Type of concession: Self-sustaining

Current status: The fourth contract draft is published in Proinversion’s web site.

Estimated award date: IV QT 2013

CALLED

Panamericana SurRed Vial N°6

BRAZIL

* VAT not included

AMAZON WATERWAYS

Location: Loreto and Ucayali.

Description: The project comprises dredging works and ships transit signaling in Huallaga, Marañon, Ucayali and Amazonas rivers so as to ensure adequate navigability conditions among the Yurimaguas, Pucallpa and Iquitos ports.

Estimated investment*: US$ 74 million Type of concession: Co-financed Concession term: 20 years

Current Status: The Third version of the contract is published on Proinversions’ web site.

Estimated award date: I QT 2014.

CALLED

* VAT not included

CHILLÓN RIVER WATER SUPPLY WORKS

Location: Lima.

Description: The project comprises the concession to design, finance, build, operate and maintain of dam works (40 MM cubic meters approximately) of Chillón river basin.

Estimated investment* : US$ 45 million

Type of concession: Self- sustained

Concession term: 20 to 30 years

Current status: In order to develop the previous studies the hiring of a consultancy was called.

Estimated award date: III QT 2014.

POR CONVOCAR

TO BE CALLED

* VAT not included

HEADWATER AND PIPELINE WORKS FOR THE SUPPLY OF DRINKING WATER TO LIMA

Location: Junín and Lima.

Description: I. Design, financing, construction, operation and maintenance of the following infrastructure works :

o Expansion of Pomacocha and Huallacocha Bajo dams (approx. 100 MCM)

o Pomacocha – Río Blanco Diversion Works (approx. 10 km of trans-Andean tunnel)

o Drinking Water Treatment Plant (5 m3/s)*

o South Branch Pipeline (approx. 25,6 km) and 6 compensation reservoirs of 24,000 cubic meters.

II. Operation and maintenance of the current facilities:

o Huachipa water treatment plant I (5m3/s)

o North branch pipeline (27.2 Km) and 5 reservoirs.

Estimated investment : US$ 400 million.

Modality: Self-sustainable.

Concession term : 20 to 30 years.

Current status: The process to update the studies and hire a transaction consultancy are to be called.

Estimated award: IV QT 2014.

POR CONVOCAR

PH

Planta Potabilizadora

HuachipaLínea de conducción Ramal Sur

Río Blanco Río Rimac

Túnel Trasandino

TO BE CALLED

MANAGEMENT OF THE INSTITUTO NACIONAL DE SALUD DEL NIÑO – SAN BORJA

Location: Lima. Description: The project comprises the management of the Instituto Nacional de Salud del Niño - San Borja (INSN), which will provide a highly qualified service to pediatric patients and will also guarantee an adequate sustainability, operation and maintenance of the infrastructure, the facilities and the equipment. Its main features are:

It counts with 242 hospital beds and 10 surgery rooms.The services provided are, among others: external consultation,

hospitalization, cardiovascular intensive care. neurosurgery, neonatology and general pediatrics, burn unit, sterilization, organs transplant and genetics.

The provision of the comprehensive service estimated for the project comprises:

• Maintenance of the facilities and infrastructure• Maintenance of the clinical and not-clinical equipment• General services (laundry, kitchen, cleaning service and

security)• Support to the diagnose (Laboratory, clinical pathology, blood

bank and sterilization center) Modality: Co-financed Contract term: 15 years.

Current status of the process: The Bidding Documents are under way. Estimated award date: IV QT 2013.

TO BE CALLED

PROJECTS IN PROCESS OF INCORPORATION…

LINE 3 OF THE BASIC METRO NETWORK OF LIMA AND CALLAO

Location: Lima and Callao.

Description: The project comprises the concession to design, finance, build, provision of system equipment, electromechanical equipment, purchase of rolling stock, operation and maintenance of Line 3 of the Metro of Lima, with an approximate extension of 32 Km. Infraestructure: tunnel and viaduct.

Estimated investment*: To be defined Type of concession: Co-financing Concession term: 35 years

Current project status: In April, MTC requested the incorporation of the project to the promotion process, and submitted the Reference Terms to commission the pre-investment studies.

Estimated date of award: II QT 2015.

* VAT not included

LINE 4 OF THE BASIC METRO NETWORK OF LIMA AND CALLAO

Location: Lima and Callao.

Description: The project comprises the concession to design, finance, build, provision of system equipment, electromechanical equipment, purchase of rolling stock, operation and maintenance of Line 4 of the Metro of Lima, with an approximate extension of 30 Km. Infraestructure: tunnel.

Estimated investment: To be defined Type of concession: Co-financing Concession term : 35 years

Current project status: In June, MTC requested the incorporation of the project to the promotion process, and submitted the Reference Terms to commission the pre-investment studies.

Estimated date of award: III QUARTER 2015.* VAT not included

TACNA - ARICA RAILWAY

Location: Tacna- Peru and Arica - Chile

Description: The project involves the development of 3 commercial hubs under a train/tram approach for urban and inter-urban transportation of passengers and goods, on the existing route and right of way. It includes:Urban transportation in the city of Tacna and, potentially, in AricaInter-urban transportation between Tacna and Arica (60 Km) Transportation of mostly containerized cargo and cement between Zofratacna and the Peruvian dock in Arica with diesel-electric locomotive.The building of a railway museum in Tacna.Estimated investment*: About US$ 120 millionType of concession: Co-financingConcession Period: 30 years

Current project status: Proinversión has prepared the Reference Terms to hire the consulting firm that will be responsible for preparing the pre-investment studies, as well as the transaction advisor. It is currently waiting for MTC to transfer funds to announce the public bids.

Estimated date of award: IV QT 2015* VAT not included

Project Sector Type

Umbilical Cord Blood Bank and National Register of Bone Marrow Donors

Health Government Initiative

Cablecar of Choquequirao (Cusco) MVCS Government Initiative

La Puntilla Fishing Complex MINCETUR Government Initiative

OTHER PROJECTS IN PROCESS OF INCORPORATION…

[email protected]

INVESTMENT OPPORTUNITIES IN PERU

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