WHY INVEST IN PERU? - unece.org · ABOUT PROINVERSION...
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WHY INVEST IN PERU? Carlos Herrera Perret Investor Services Director PROINVERSION
Transcript of WHY INVEST IN PERU? - unece.org · ABOUT PROINVERSION...
WHY INVEST IN PERU?
Carlos Herrera Perret
Investor Services Director
PROINVERSION
ABOUT PROINVERSION
� Its Steering Council is composed of 5 Ministers of State and head by the Minister of Economy.
� PROINVERSION implements national policy on private investment .
� It encourages the participation of private investments in infrastructure works and utilities, as wellas assets, projects and State-owned companies under public and private initiatives .
� It provides information and services to investors during the execution and development of theirinvestments, especially in investments related to the promotion processes in charge ofPROINVERSIÓN.
� It acts as the National Competent Entity for registration of foreign investments, subscription ofjuridical stability agreements and contracts for anticipated recovery of VAT.
� Its scope is nationwide and abroad it acts with the support of the Peruvian diplomatic andcommercial missions.
The Private Investment Agency of Peru – PROINVERSIÓN, is a public entity underthe Ministry of Economy and Finance
1. Internationally acknowledged macroeconomic stability
WHY INVEST IN PERU?
2. Friendly investment environment
3. Open trade and market access policy
1. MACROECONOMIC SOUNDNESS
Peru among the fastest growing economies in the world
World’s GDP 2002-2010 (Var. Accrued.%)
Source: IMF
1. MACROECONOMIC SOUNDNESS
Peru will continue leading regional growth
Peru Gross Domestic Product(US$ Million )
Source: Central Reserve Bank of Peru, Ministry of Economy and Finance, IMF. * Preliminary figures** Estimated figures
3.0
0.2
5.0
4.0
5.0
6.8
7.7
8.99.8
0.9
8.8
6.76.0
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
*
2012
** 3.0
3.4
3.7
4.3
4.7
4.8
6.0
Venezuela
Mexico
Argentina
Brazil
Chile
Colombia
Peru
Forecast - LATAM: Real GDP 2012-2014Average annual % variation)
Source: Standard & Poor`s, Fitch Ratings y Moody´s. Updated to Sept. 1st, 2011
País S&P Fitch Moody´s
Chile A+ A+ Aa3Mexico BBB BBB Baa1Brazil BBB- BBB Baa2Peru BBB BBB Baa3Colombia BBB- BBB- Baa3Bolivia B+ B+ B1Venezuela B+ B+ B2Argentina B B B3Ecuador B- B- Caa2
1. MACROECONOMIC SOUNDNESS
The responsible economic policy granted Peru the investment grade and investors’ confidence
Investment grade1Latin America benchmarking
18
21
3
18
16
4
Chile (Aa3)
Peru (Baa3)
Brazil (Baa2)
2011 2010
Countries as priority destinations for FDI 2011-20131(World Ranking among 21 countries)
Dropped 1 position
Improved 5 positions
Without changes
Brasil
Peru
Chile
Source: UNCTAD – WIR 2011
� 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 partnerfor investments in radio and television as well as in air transport is required.
2. FRIENDLY INVESTMENT ENVIRONMENT
Peru offers a favorable legal framework for foreign investment …
Agreements in force Agreements to become effective
3. OPEN TRADE AND MARKET ACCESS POLICY
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
Also represent 96% of
Peruvian exports to the
world
Peru
Investment opportunities
Peru promotes private investments to foster competitiveness and sustainable development by encouraging PPP in infrastructure projects as well as investments
that make possible the country reaches its productive development
INVESTMENT OPPORTUNITIES IN A WIDE
RANGE OF ACTIVITIES
GENERAL FLOW OF A PPP PROCESS
INCORPORATION TO
PROMOTION
PROCESS
PROMOTION PLAN:
GENERAL DESIGN OF THE PROCESS
CALL FOR BIDS AND TERMS:
RULES OF THE GAME
CONTRACT: OBLIGATIONS
OF THE PARTIES
QUESTIONS & ANSWERS
SHORT-LISTING OF
BIDDERS
SUGGESTIONS AND/OR
COMMENTS BY
BIDDERS/ENTITIES ARE
COLLECTED
EVALUATION OF
TECHNICAL PROPOSALS
SELECTION OF THE
BEST ECONOMIC
PROPOSAL
AWARD
CLOSING DATE
(SIGNING THE CONTRACT)
PORTFOLIO PROJECTS
in the short term
ONGOING PROJECTS
Private investment promotion process up to December 2012
22 projects
*VAT is not included, except tourism and culture sectors.In culture sector the estimated cost correspond to operation and maintenance
SECTOR N° PROJECTS ESTIMATED INVESTMENT
(US$ MILLION)*
Agriculture 3 613.2Energy 4 585.0
Hydrocarbons 4 690.0Ports and Navigability 1 46.4
Land Transport 1 50.8Telecommunication 2 297.7
Tourism 1 10.6Culture 1 95.0Capital Markets 2 To be defined
Mining 2 To be definedSanitation 1 35.6
Total 22 2,424.3
1
3
2
AGRICULTURE AND IRRIGATION PROJECTS
PROJECTSCURRENTSTATUS
ESTIMATED INVESTMENT
US$ MILLION*
PLANNEDAWARD DATE
1. Chavimochic irrigation project (III Stage)
To be called 498.8Second half of the year
2012
2 Comprehensive Choclocochaproject
To be called 110.2Second half of the year
2012
3. Majes Siguas projectLand Sale in Majes
Call for tender was
made4.2
Second half of the year
2012
* VAT not included.
ENERGY PROJECTS
SECTOR / PROJECTCURRENT
STATUS
ESTIMATED
INVESTMENT
US$ MILLION
PLANNED
AWARD DATE
TRANSMISSION LINES
1. Moyobamba – Yurimaguas -Nauta-Iquitos Transmission Line
Call for
tender was
made
330Second half of the
year 2012
2. Cajamarca Norte -Carhuaquero 220 kvTransmission Line and associated substations.
Call for
tender was
made
130First half of the
year 2012
3. Machu Picchu – Quencoro –Onocora -Tintaya 220 KvTransmission Line
Call for
tender was
made
70Second half of the
year 2012
THERMAL POWER STATION
4. Stand-by Reserve: 35 – 40 Mw Pucallpa plant and 15 – 18 Mw Puerto Maldonado plant
Call for
tender was
made
55First half of the
year 2012
*VAT not included
1
2
3
3
3
3
3
4
4
4
4
4
4
HYDROCARBONS PROJECTS PORTFOLIO
PROJECTCURRENT
STATUS
ESTIMATED
INVESTMENT
US$
MILLION*
PLANNED
AWARD
DATE
1. Supply System of LPG for Lima and Callao
Call for tender was made
90Second half of the year2012
2. Supply system of LNG for domestic market
To be called 400**Second half of the year2012
3. Distribution System of Natural Gas for the center –north
To be called 100**Second half of the year2012
4. Distribution system of natural gas for the South
To be called 100**Second half of the year2012
* VAT not included.
** Preliminary investment amounts.
PORT AND LAND TRANSPORT PROJECTS
PROJECTCURRENT
STATUS
ESTIMATED
INVESTMENT
US$ MILLION*
PLANNED
AWARD
DATE
PORT PROJECT
Upgrading and maintenance of navigability conditions of Rivers Huallaga, Ucayali, Marañon andAmazonas
To be
called46.40
Second half
of the year
2012
LAND TRANSPORT PROJECT
Panamericana Sur highway: Ica – border with Chile: Section Dt. Quilca – Dt. Arequipa; Dt. Matarani – Dt. Moquegua; Dt. Ilo– Tacna – La Concordia
Call for
tender
was
made
50.8
Second half
of the year
2012
* VAT not included.
SECTOR/ PROJECTCURRENT STATUS
ESTIMATED INVESTMENTUS$ MILLION *
PLANNED AWARD DATE
TOURIST PROJECT
1. Kuelap Cable car To be called 10.6*Second half of the year 2012
CULTURE PROJECT
2. Management of the National Grand Theater
To be called 95First half of the year 2012
SANITATION PROJECT3. Operation and maintenance, rehabilitation and improvement of 16 SEDAPAL WWTP
Private InitiativeDeclared of interest
35.6Second half of the year 2012
1
23
* Vat included
TOURIST, CULTURE AND SANITATION PROJECTS
1
SECTOR / PROJECTCURRENT
STATUS
ESTIMATED
INVESTMENT
US$ MILLION
PLANNED
AWARD DATE
1. 899-915 MHz and 944 - 960 MHz Bands in Lima and Callao; and, 902 - 915 MHz and 947 -960 MHz Bands for the rest of the country.
The call for
tender was
made
297.7First half of the
year 2012
2. 1710 – 1770 MHz and 2110 –2170 MHz Band Nationwide
The call for
tender was
made
Under
evaluation
Second half of
the year 2012
TELECOMMUNICATION PROJECTS PORTFOLIO
* VAT not included.
SECTOR/ PROJECTCURRENT STATUS
ESTIMATED INVESTMENTUS$ MILLION
ESTIMATED AWARD DATE
CAPITA MARKET PROJECTS
Sale of shares held by FONAFE (Xtrata Las Bambas, Telefonica S.A., ClinicaInternacional, Norsac, Telefonica del Peru S.A.A. and Xtrata Tintaya companies)
To becalled
Under evaluation
First half of the year 2012
Sale of shares of Cayalti, Pomalca and Tuman
To becalled
Underevaluation
First half of the year 2012
MINING PROJECTS
1. Mining prospects of HuaydayAmbara
To becalled
Underevaluation
Second half of the year 2012
2. Concession of Remaining Michiquillay Project
To becalled
Underevaluation
Second half of the year 2012
CAPITAL MARKET AND MINING PROJECTS
1
2
OTHER INVESTMENT OPPORTUNITIES
Other projects
* VAT is not included, except tourism sector
SECTOR N° PROJECTS
ESTIMATED
INVESTMENT
(US$ MILLION)*
Airport 1 355.93Agriculture 3 1,435.59Energy 2 600.00Hydrocarbons 3 To be definedRailway 3 To be definedReal estate 2 15.08Ports 5 210.72Telecommunications 1 To be definedTourism 1 800.00Land Transport 8 To be definedCapital market 1 To be definedMining 4 To be definedSanitation 1 To be definesTotal 35
