Peru: Investment Opportunities Newsletter | June 2025

The new PPP Law is under scrutiny by the Executive

On April 16, 2025, the Peruvian Congress approved a new law to promote private investment through public-private partnerships (PPPs) and projects in assets. The law has not yet taken effect, as it is pending publication.

Below are key highlights of the reform and the changes it introduces:

• ProInversion will play a significant role as the granting authority in projects developed under the PPP framework. This includes PPP contracts signed within 12 months prior to the law's enactment. Consequently, the Anillo Vial Periférico project, which was awarded to Sociedad Concesionaria Anillo Vial S.A.C., will have ProInversion as the granting entity instead of the Ministry of Transport and Communications (MTC).
  
  However, this provision will not apply to the electricity sector. The Ministry of Energy and Mines will continue to be the granting authority for transmission agreements developed under the PPP framework.

• It eliminates the Project Management Body (OEGEP), a specialized unit within the MTC that was responsible for managing PPP projects. The law introduces the more flexible concept of Project Management Office (PMO) in its place. A PMO can be contracted internally or externally and is responsible for overseeing the planning, execution, and monitoring of infrastructure projects. Unlike the OEGEP, which was tied to a specific ministry, PMOs can be contracted by any public entity, allowing for greater adaptability and technical specialization.
  
• It limits the Ministry of Economy and Finance's (MEF) oversight scope. While the MEF retains its role as the PPP system's governing body, the new law narrows its scope of intervention. The MEF is now limited to issuing binding opinions on four key areas: budgetary capacity, contingent liabilities, economic equilibrium, and guarantees.
  
• ProInversion assumes a broader operational role as the granting authority for national PPPs and the entity responsible for managing the full project cycle, including formulation, structuring, transactions, and execution. Proinversion now has the authority to interpret contracts, manage modifications, and oversee implementation-functions that were previously shared or overseen by the MEF.

As part of the legislative approval process, Congress must send the signed bill to the executive branch for review. During this stage, the Executive Branch issued 21 observations. The most significant are as follows:

• Transferring the Anillo Vial Periférico project from the MTC to ProInversion could trigger international arbitration claims. Congress rejected this observation, stating that the bill does not alter the rights or obligations of existing contracts but rather changes the state’s representative entity.
  
• Eliminating the OEGEP would leave current projects under ministerial responsibility unprotected because the new law only considers PMOs for future projects. Congress refuted this concern, emphasizing that the change in terminology does not affect the legal validity or continuity of project management structures and that ministries can still contract PMO services for ongoing projects.
  
• Limiting the MEF’s oversight could weaken fiscal safeguards and reduce its ability to monitor financial and contractual risks across the PPP system. Congress upheld the limitation, arguing that the narrowed scope allows the MEF to focus on its core fiscal responsibilities and avoid unnecessary delays in project development.

The Fiscal Commission warned that transferring stewardship from the MEF to ProInversion could weaken fiscal controls and contradict international best practices.

Furthermore, the Executive Branch argued that the Economic Affairs Committee of the Congress did not issue a formal opinion on the bill, despite its relevance to fiscal and economic policy.

Conversely, the private sector, represented by AFIN -an influential business association of that brings together the primary infrastructure concessioners for public services Peru’s energy, transportation, telecommunications, sanitation, irrigation, and social infrastructure sectors - supports the reform. AFIN has long criticized the excessive delays in PPP processes and advocates for consolidating Proinversion as a centralized technical unit with clear authority and streamlined procedures.

The law has not yet been enacted. Its entry into force depends on further review by the Legislative Branch and its official publication. A timeline for final approval or implementation has not yet been confirmed.

The Peruvian government is promoting the construction of an artificial peninsula in Callao

ProInversion announced that a consortium submitted a private initiative titled "Artificial Peninsula – Gateway to the Pacific" under the Projects in Assets modality. The project will create 200 hectares of new urban land by reclaiming land from the sea in the Callao area. The peninsula will feature public beaches, water parks, and residential and commercial zones. It will be developed by a consortium with international experience in large-scale infrastructure projects.

The initiative is expected to be officially declared of interest in the third quarter of 2025. After the declaration, a period will open for third parties to express interest in the project.

If more than one party expresses interest, a public bidding process will be launched. Otherwise, the project will be awarded directly to the original proponent.

ProInversion will promote the modernization of the Tacna-Arica railroad

ProInversion and the Regional Government of Tacna signed a Collaboration and Commissioning Agreement to modernize the Tacna–Arica railway through a PPP. This binational project connects Tacna, Peru with Arica, Chile, and aims to enhance cross-border mobility and regional integration.

Under the proposed modernization initiative, the awardee will be responsible for investing in track replacement, upgrading rolling stock and equipment, and modernizing stations. The awardee will also be responsible for operating and maintaining both passenger and cargo services. This initiative is expected to significantly increase domestic and international tourism, as well as regional trade.

According to ProInversion, the project will require an estimated investment of USD 70 million.

The award date is yet to be determined.

Current public projects

Transportation

Bids in process

Longitudinal de la Sierra Road project — Section 4: ProInversion has called for a public bid to grant this project but recently decided to restructure it. The project's initial version consisted of a 25-year cofinanced concession to construct, operate and maintain Section 4 of the Longitudinal de la Sierra Road (Junin, Huancavelica, Ayacucho, Apurimac and Ica), which is projected to be 970 kilometers long. The estimated investment for this project is USD 1.5 billion, and it is expected to be awarded in the third quarter of 2025.

Choquequirao cable car: The Peruvian government has called for a public bid to award the Choquequirao cable car project as a PPP. The project aims to improve the access infrastructure to the Choquequirao Archaeological Monument from Cusco and Apurimac. The government expects to award this project in the third quarter of 2025.

The awardee will be responsible for designing, constructing, financing, operating and maintaining a cable and bus transportation system to ensure access and comfort for visitors.

According to ProInversion, the project will require an investment of USD 261 million.

Potential projects

Lima-Ica commuter rail (Tren de Cercanías): Private parties had until May 2019 to present cofinanced unsolicited proposals for executing this commuter rail, which will connect Lima city to the Ica region. China Railway was the only company to submit a proposal, but it failed to satisfy ProInversion's requirements.

Consequently, the Peruvian government decided to tender this project as a cofinanced PPP. For this purpose, a pre-investment study was conducted and should have been ready by the end of 2020. However, more time was needed to complete the study due to the COVID-19 pandemic and the consequent nationwide suspension of activities ordered by the Peruvian government.

This 324-kilometer commuter train line will include the supply of cutting-edge rolling stock for providing cargo and passenger transportation services. It aims to connect the following infrastructures:

• Basic Lima and Callao metro networks
• Logistics platforms
• Port terminals in El Callao
• The port terminal of San Martin-Pisco

According to the Ministry of Transportation and Communications, this commuter train line will require an investment of more than USD 3.2 billion. ProInversion will call for a public bid by 2026.

Eight countries have submitted technical proposals for the creation of the Project Management Office (PMO), the entity in charge of promoting the execution of this important railway project: Germany, Canada, South Korea, Spain, France, India, Japan and the United Kingdom.

Electricity

Bids in process

Four transmission projects — third group: ProInversion announced the lifting of the suspension of the public bid to grant a concession to design, finance, construct, operate and maintain the following projects:

Proinversion expects to award it in the last quarter of 2025.

Potential projects

16 transmission projects: ProInversion will call for a public bid to grant the following 16 transmission projects, which are part of the 2025-2034 Transmission Plan, for USD 896 million:

Sanitation

Bids in process

Sewage treatment system for Puerto Maldonado: In September 2020, ProInversion called for a public bid to grant a concession to design, finance, construct, operate and maintain this project. The estimated investment for this project is USD 121.92 million, and ProInversion expects to award it in the second quarter of 2025.

Main works for and distribution of the drinkable water supply for Lima (Obras de Cabecera y Conducción para el abastecimiento de agua potable para Lima): ProInversion has called for a public bid to grant a 30-year concession to design, finance, construct, operate and maintain the following: (i) the extension of the Pomacocha and Huallacocha Bajo dam (approximately 100 million cubic meters); (ii) diversion works in Pomacocha-Rio Blanco (approximately 10 kilometers of a trans-Andean tunnel); (iii) a water purification plant (five cubic meters per second); and (iv) the Ramal Sur distribution pipeline (approximately 25.6 kilometers). The estimated investment for this project is USD 475 million, and ProInversion expects to award it in the third quarter of 2025.

Real Estate

Bids in process

Ancon Industrial Park: In January 2021, ProInversion called for a public tender to transfer a piece of land to create an industrial park. This project will be executed on land owned by the Peruvian state (PRODUCE), covering an area of 13,382,257 square meters, located between the 45th and 50th kilometers of the North Pan-American Highway, Ancon district, Lima.

The services to be provided by the Ancon Industrial Park to the industrial companies operating in this space will be divided into four categories: basic services (sanitation, energy and telecommunications); ancillary services (maintenance, monitoring, cleaning, etc.); advanced services (centralized management, technological and business development, etc.); and collateral services (a truck center).

The estimated investment for this project is USD 1.2 billion, and ProInversion expects to award it in the third quarter of 2025.

Health

Bids in process

Operation and maintenance of the New Emergency Hospital Villa El Salvador: In January 2024, ProInversion called for a public bid to grant the concession of this project through a 16-year PPP, which consists of financing the hospital's operation and maintenance.

The estimated investment for this project is USD 284 million, and ProInversion expects to award it in the second quarter of 2025.

Potential projects

Children's Health Institute: In the second quarter of 2025, ProInversion will call for a public bid to grant the management contract for this project through a 17-year PPP, which consists of providing nonmedical services and diagnostic assistance.

The estimated investment for this project is USD 374 million, and ProInversion expects to award it in the first quarter of 2026.

New Central Military Hospital: In the second quarter of 2025, ProInversion will call for a public bid to grant the concession for this project, which will provide military personnel and their families with a state-of-the-art hospital.

The estimated investment for this project is USD 441 million, and ProInversion expects to award it in the last quarter of 2025.