Peru has what it takes to attract investments from leading international firms for infrastructure ventures under the Public-Private Partnership (PPP) mechanism, said Jose Luis Guasch, former Head of the World Bank Group's Global Expert Team on PPP.
Guasch noted that, given its high fiscal responsibility and proper macroeconomic management, the Inca nation could draw capitals from Germany, Spain, Japan, South Korea and India.
"Germany is the one with most available capital, but then there's also Spain, which is highly-experienced. Spanish construction companies are after opportunities in other markets," he told El Peruano official gazette.
Portfolio
Peruvian Economy and Finance Minister Alfredo Thorne recently informed the country's PPP 2017-2018 project portfolio exceeds US$14 billion.
In this sense, Guasch said companies from Europe, Asia and the Middle East are willing to invest in developing countries like Peru.
Japan, South Korea and India are some of Asia's highlights, whereas in Europe, "experienced countries in these matters are France, Italy and England."
What to do
The international expert recommended segmenting enterprises from countries specialized in required fields like airports, ports and highways in order to get the best possible bidders.
He also proposed that the Private Investment Promotion Agency (ProInversion) carry out roadshows in countries with higher private sector involvement in PPP projects.
Guasch described the Finance Ministry's goal —to draw US$14 billion for PPP ventures— as ambitious, yet attainable.
"The sum Peru manages to award from this investment portfolio will depend on the capacity of ProInversion, which currently undergoes an upgrading process," he stressed.
Reforms
Lastly, Guasch highlighted recent modifications to PPP's regulatory framework could contribute to awarding a large proportion of the said US$14 billion.
"These reforms will undoubtedly facilitate its [the framework's] application, as it somehow allows for further transparency and less uncertainty. These are important for any bidder," he pointed out.
(END) DOP/MDV/DHT/MVB