Peruvian Prime Minister Fernando Zavala affirmed reconstruction of flood-affected areas will mobilize an investment of more than S/1 billion (around US$307.5 million) through Work for Taxes mechanism.
While opening the forum "Work for Taxes towards Reconstruction," Zavala explained the investment-oriented mechanism is working efficiently.
Works for Taxes (Law No 29230) is an income tax payment mode that allows companies to pay part of their tax bill by investing in public works, thus eliminating government institutions’ need to mobilize public funds.
"Let's think of different ways to make private sector companies work together on larger projects in favor of the country [Peru]," he stated.
Zavala also stressed the reconstruction plan will be completed in three years, and the government will prompt municipal governments to speed up urban development.
Reconstruction will start in 2017, so 2018 will be a year of strong execution. The rest of the plan will be executed in 2019.
The Executive's actions to address the emergency include early response, restoration and reconstruction. "We are currently in the restoration stage, in which victims struggle to resume their daily life," he said.
Other aspects
The Government addresses five important aspects including housing, health and education.
With respect to housing, the Government contributes to managing 170 shelters lodging over 32,000 victims, who are about to be provided temporary housing as part of the second phase. Some 12,000 prefabricated houses have been acquired so far.
"Other 2,500 will arrive next week, which are to be sent to four affected regions. Temporary houses will be habitable for 12 to 18 months, until the new system is ready," he explained.
Regarding health issues, the Government works on early fumigation practices to prevent outbreak of diseases. Some 1.5 million fumigation operations will be carried out on a daily basis.
Lastly, he referred to education and said only 26,000 out of 8 million public school students have returned to class following the emergency.
(END) FHG/CCR/RMB/MVB
Published: 4/18/2017