Andina

S&P hails Peru for fostering infrastructure development

Infrastructure development lies at the core of Peruvian government's programme

The financial hub and centre of the Peruvian capital Lima. Photo: Archive

The financial hub and centre of the Peruvian capital Lima. Photo: Archive

16:11 | Lima, Aug. 27.

Standard and Poor's (S&P) ratings services praised the Peruvian government’s strong focus on the development of infrastructure nationwide while being supported by a sustained effort to develop public-private partnerships (PPP).

The financial services firm stated that a sustained progress in areas such as education, health, and social development, which started with previous governments' reforms, continues under the Ollanta Humala Administration.

The United States based company headquartered in New York stressed that quantitative improvements in education or health will take time to materialize, but these core matters remain priorities of the ongoing Humala administration.

“Likewise, the development of Peru's infrastructure remains at the center of the government agenda, supported by a sustained effort to develop public-private partnerships (PPP),” S&P said in a report published Tuesday.

Nevertheless, it said, the frequent changes in cabinet positions are detrimental to the government's effort to improve public policies and continue to affect the perception of political risk in the Andean nation.

“Improving public investment execution, in particular at Peru's regional level, remains important to the leading role of private investment in modernizing the country’s infrastructure gap,” S&P noted.

(END) JJN/AQR/LOG



Published: 8/27/2014