Peruvian Ministry of Foreign Relations

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  • 1. Peru: Investment destination Ministry of Foreign Affairs of Peru October, 2012
  • 2. Peru: Investment destiny
  • 3. ¿Why invest in Peru? Why invest in Peru? Macroeconomic stability Friendly investment environment Open trade and market access policy
  • 4. Peru will continue to lead regional growth:Source: Central Reserve Bank of Perú, Ministry of Economy and Source: International Monetary FundFinance.* Estimated figures
  • 5. A healthy debt level in relation with its international reserves:Source: Central Reserve Bank of Peru and Ministry of Economy and *As of July 20, 2012.Finance.*Preliminary figure
  • 6. The lowest annual average Investment grade - A Latin American inflation rate in Latin America: comparison: CountrySource : Central Reserve Bank of Peru and Source : Standard & Poors, Fitch Ratings and Moody‘s.Ministry of Economy and Finance Updated to March 2, 2012.
  • 7. A favorable legal framework:Non discriminatory treatment.Unrestrictive access to most economic sectors.Free competition.Free capital transfer.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 OECD.
  • 8. Special Regimes: The Legal Stability Agreements The Peruvian Government grants the following: Requirement: Minimum investment of US$ 5 million in any economic sector . US$ 10 million for hydrocarbon and mining sector. Validity: 10 years. Concessions:Term according to the contracts life (Max. 60 years).These treaties are ruled by the Legislative Decree 662 – Legislative Decree N° 757, Supreme Decree N° 048-98, Supreme Decree 030-2000PCM, Law 27342.
  • 9. Special Regime: VAT Anticipated RecoveryThe Peruvian Government grants the following:Benefits:  Granting the return of the Value Added Tax during the pre- productive stage of the project (minimum 2 year term).  Applicable to all economic sectors.  For agricultural activity it is not necessary to meet a minimum investment amount. For other activities the minimum investment amount is US$ 5 million.  The project can be divided into stages, phases or similar.
  • 10. Doing Business 2012: Peru in the world Ranking by each topic :Source: The World Bank, 2012
  • 11. Doing Business 2012: Peru 2nd in Latin America Source: The World Bank, 2012
  • 12. Investment Agreements: Peru has signed 33 International Investment Agreements, that underpin its liberalization policy.
  • 13. Investment Agreements:Agreements to avoid double taxation In force: Chile; since 1/01/2004 Canada; since 1/01/2004 Andean Community; since 1/01/2005 Brazil; since 1/01/2010
  • 14. 3Open trade and market access policy: US $ 56 trillion
  • 15. Investment Opportunities: AGRIBUSINESS TECHNOLOGICAL FISHERIES SERVICESREAL STATE FORESTRY WHERE TO INVEST ? TOURISM TEXTILE PETROCHEMICAL MINING ENERGY
  • 16. Agribusiness sector: Natural greenhouse. Seasonal window in the most important markets. Projections expect the 90,000 ha. currently used for agro exports to double as consequence of large irrigation projects in portfolio. Over US$ 4,400 billion in exports of fresh and processed products to more than 156 countries. Organic and natural products with high export value.
  • 17. Fisheries sector: 1st producer of fishmeal and fish oil in the world. Extensive fishing coast and “water mirrors” that offer adequate conditions for the development of marine and continental aquaculture. Distribution of Peruvian fisheries products to over 100 countries. Trend towards product diversification.
  • 18. Forestry sector: Great biological diversity and highly valued timber. 78, 8 million ha. of natural forests. 2nd country with the largest natural forest area in Latin America. Development of hard tropical timber in the forest and soft timber in the highlands. Investment opportunities in industrial timber complexes.
  • 19. Textile sector: Recognized quality of Peruvian pima cotton. 1st world producer of the finest South American camelids fibers. Long textile tradition favors workforce professionalization and training. International recognition as “full package” supplier of the best brands in the world. Sound trend towards exports growth.
  • 20. Mining sector: Polymetallic country: 2nd in copper, 3rd in zinc and 1st in silver reserves worldwide. 13.61% of the territory is subject to mining concessions, and only 1.09% is used for mining exploration and exploitation. 2nd silver and copper producer worldwide. 1st gold, tin, zinc and lead producer, and 2nd copper, silver and molybdenum producer in Latin America. In 2011, mining exports grew by 23.25%.Peru is one the few countries with non- metallic mineral deposits, such as mercury, selenium and cadmium.
  • 21. Energy sector: Energy matrix mostly based on renewable sources. In the last five years, the energy production has increased in 40.3% due mainly to the thermoelectric generation growth with annual average rate of 16%. Main economic groups that comprise 62% of energy production in Peru are Globeleq, Suez and Duke Energy. Great energy potential. Renewable energy sources toexplore.
  • 22. Petrochemical sector: Peru has important natural gas reserves. Natural gas production reached 401,169 million cubic feet in 2011. Petrochemical industry merges with natural gas production and other hydrocarbons using the “Upstream Integration” Development Strategy. Peru has oil fields which have not been explored yet. US $ 17,150 million from private investment will be assigned to the construction of ammonia, urea and ethylene plants in the southern region of the country.
  • 23. Tourism sector: Machu Picchu: One of the New Seven Wonders of the World. Diversity of natural landscapes. Destination for bird and orchid watchers. Lima is the gastronomic capital of Latin America. Significant investment from hotels of international recognition. Investment opportunities in the 8 prioritized tourist destinations: North beaches, Amazon Rivers, Amazonas-Kuelap, Moche Route, Lima, Nazca-Paracas, Colca Valley and Lake Titicaca.
  • 24. Real state sector: Housing deficit affects 25% of population. Annual growth of construction sector for 2010 was 18%. There are several programs for housing financing based on households socio-economic conditions and income level. Mortgage credits grew an average of 17% in the last 4 years (2008-2011).
  • 25. Technological Services: The lowest labor cost per operator in Latin America. The contact centers services exports, data processing, application of IT program and similar are exempted from VAT. The software sector had in the last 6 years an annual average growth of 15%. The industry currently represents 15.574 positions, and it generates 29.665 direct jobs, and exports have tripled in 5 years. The implementation of the Data Protection Law will strengthen the position of companies, making possible to establish more trading links.
  • 26. ONGOING PROJECTS IN PROINVERSION’S PORTFOLIOPrivate investment promotion process – short term 2012-2013:1/ VAT not included.2/ Investment amounts of Land transport (Road Concessions Project), Telecommunication (National Optical FiberBackbone Network), Tourist (Kuelap cable cars) and Airport (New International Airport Chinchero – Cusco) sectorsinclude VAT.Source: Proinversión
  • 27. LAND TRANSPORT PROJECTS*VAT is included
  • 28. RAILROAD PROJECT
  • 29. HYDROCARBONS PROJECTS
  • 30. ENERGY (ELECTRICITY) PROJECTS
  • 31. AIPORT PROJECT
  • 32. PORT PROJECTS
  • 33. TELECOMMUNICATION PROJECTS*VAT is included
  • 34. AGRICULTURE AND IRRIGATION PROJECTS
  • 35. SANITATION PROJECT
  • 36. TOURISM PROJECT
  • 37. CULTURE PROJECT
  • 38. MINING PROJECTS
  • 39. CAPITAL MARKET PROJECTS
  • 40. Thank youFor more information please visit:• www.proinversion.gob.pe• www.rree.gob.pe• www.promperu.gob.pe