Presentation made by Mr. Carlos Herrera, CEO, Proinversion at the India LAC Investment Conclave. The conclave was organised by FICCI in New Delhi. More details at indialacconclave.com

1. Peru:
Endless investment
opportunities
Carlos Herrera
Executive Director

2. WHY INVEST IN PERU?
1. Internationally acknowledged macroeconomic soundness
2. Friendly investment environment
3. Open trade and market access policy
4. Attractive sectors to Invest

3. MACROECONOMIC SOUNDNESS
Peru’s macroeconomic performance over the last decade 2005 – 2014*
Real GDP (US$ billion)
Exports (US$ billion)
IPC, 2004-2013 (Annual variation %)
3.5
10
8
6
4
2
Source: Central Reserve Bank of Peru and IMF / * Estimated figures of BCRP (Inflation report as of July 2014) and IMF
2.9
7.0
7.4
0
Peru
LAC
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
12.8
17.4
23.8
28.1
31.0
27.0
35.6
46.3 46.2
41.8
39.8
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014*
Public Debt (% of GDP)
39.3
32.3
28.5
25.9 26.0
23.5
21.4 20.4 19.6 19.2
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014*
61.4
69.7
79.4
92.3
107.3
126.9 127.0
153.8
176.6
199.6 206.5
216.7 235.7
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014* 2015*

4. MACROECONOMIC SOUNDNESS
Total investment 2003-2015* (% of GDP)
More than 20% of GDP
Total investment – LATAM 2013 (% of GDP)
Peru Chile Mexico Colombia Brazil
Inversión Privada
Inversión Pública
Private investment
Public investment
3.0 2.9
3.1
3.2
13.9 13.8 14.5 15.1
3.5
16.8
4.5
19.5
5.7
17.6
5.9
4.8
19.2 19.2
5.4
5.8
20.4 20.8
5.8 6.0
22.5 22.5
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014*
2015*
Source: Central Reserve Bank of Peru * Estimated figures CRB Source: IMF and Central Reserve Bank (CRB)

5. 1. MACROECONOMIC SOUNDNESS
Peru maintains a healthy level of debt…
Public Debt– Peru 2003-2015*
(% of GDP)
Source: Central Bank of Reserve of Peru
*Estimated figures, CBRP (Inflation report July 2014)
Public Debt– Latin America 2013
(% of GDP)
12.9
19.2
Source: FMI and BCRP
32.3
44.0
47.8
53.4
68.3
Chile Perú Chile Peru CCoololommbbiaia MMeéxxiiccoo AArrggeennttiinnaa V Veenneezzuueelala BBrraazsiill
46.9
42.6
39.3
32.3
28.5
25.9 26.0
23.5
21.4 20.4 19.6 19.2 18.6
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014*
2015*

6. 1. MACROECONOMIC SOUNDNESS
...and has accumulated international reserves for a third of the GDP
Net International Reserves
( US$ Billion)
Source: Central Reserve Bank of Peru
*Up to August 1, 2014
2004 2009 2014*
NIR Adequacy Indicators
NIR ( % of GDP) 19.2 27.2 31.9
NIR / GDP (Short-term Foreign Debt) 171.8 292.2 821.9
NIR /GDP Short-term Foreign Debt plus Current
Account deficit)
173.2 281.6 365.8
Source: BCRP. Inflation report July 2014
*Projection
9.6 10.2
12.6 14.1
17.3
27.7
31.2
33.1
44.1
48.8
64.0
65.7 64.6
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014*

7. Peru: Middle and Emerging middle class
2005 -2012 (% population)
Total poverty: Latin America and Peru
2005 -2012 (% population)
Source: INEI – ENAHO 2004-2012,ENDES 2012, IDB - Technical
note. Middle Class in Peru: quantification and recently evolution.
55.6
49.1
42.4
37.3
33.5
25.8 39.7
2005 2006 2007 2008 2009 2010 2011 2012
Source : CEPAL – Social Outlook 2012.
30.8
27.8
36.2 34.0 33.2 32.8 31.0 29.4 28.8
Perú LA
48.7
24.8 25.9
0.6
27.8
21.2
48.9
2.1
Poor Emerging
Population
Middle class High class
2005 2011
MACROECONOMIC SOUNDNESS
Peru

8. MACROECONOMIC SOUNDNESS
Peru earned the investment grade and investor`s confidence by
practicing a responsible economic policy
Investment grade
Latin America benchmarking
Country S&P Fitch Moody´s
Chile AA- A+ Aa3
Peru BBB+ BBB+ A3
Mexico BBB+ BBB+ A3
Brasil BBB- BBB Baa2
Colombia BBB BBB Baa3
Bolivia B- BB- Ba3
Ecuador B B Caa1
Venezuela B- B Caa1
Argentina CCC- CC Caa1
Source: Standard & Poor`s, Fitch Ratings and Moody´s.
Updated as of July 2014

9. FRIENDLY INVESTMENT ENVIRONMENT
Peru offers a favorable legal framework for foreign investment
 Based on the “national treatment” principle.
 Unrestrictive access to most economic sectors.
 Free movement of capital.
 Free competition.
 Guarantee for private property.
 Special Regimes: Legal Stability Agreements and VAT Anticipated Recovery.
 Investment Chapter in FTAs and member of ICSID and MIGA.
 To come: Peru – India FTA negotiations
 Peru participates in the OECD Investment Committee and has initiated the
process for its future incorporation as a member economy.

10. Peru ranks second in the region in the improvement of business regulations.
.
Doing Business 2014
2. FRIENDLY INVESTMENT ENVIRONMENT
Continuous effort to facilitate the establishment and operation of business
Position Country
1 Chile
2 Peru
3 Colombia
4 Uruguay
5 Paraguay
Brasil
116
Surinam
162
Paraguay
88
126
161
115
43
135
34
42
181
Argentina
Uruguay
Bolivia
Guyana
Venezuela
Colombia
Perú
Chile
Ecuador
109

11. A steady tax regime
Tax Applicable Rate
INCOME
Corporate profits
30.0%
Agriculture and agribusiness 15%
Dividends 4.1%
Royalties 30.0%
Interest rate on loans from
4.9%
abroad
Value Added Tax (VAT) 18%
Financial Transactions Tax 0.005%
Temporary to net assets, applicable to
the excess of S/. 1 000 000
0.4%
FRIENDLY INVESTMENT ENVIRONMENT

12. OPEN TRADE AND MARKET ACCESS POLICY
An open trade policy sustained over time
Evolution of nominal and effective tariff; and tariff dispersion 1993 – 2013
Source:MEF
Notes:
1) Affective Tariff= (Amount of total revenue Ad valoren CIF / Total Amount of CIF Imports)*100.
2)Tariff Dispersion= Standard Deviation

13. OPEN TRADE AND MARKET ACCESS POLICY
Working to become a globalized economy, with preferential access to the world’s largest markets
These countries stand for
enlarged market of over 4
billion people with a joint
GDP over US$ 56 billion
96% of Peruvian exports

14. ATTRACTIVE SECTORS TO INVEST
MINING
ELECTRICAL
ENERGY
FISHERY
AGRO-INDUSTRY
TEXTILE-CLOTHING
HYDRO-CARBONS
Comparative
Advantages
TOURISM

15. Challenge: to reduce the US$ 88 billion infrastructure gap
Health 0.5%
Educatión
0.4%
Telecom
22%
Water/sanitation
6%
Hydraulic
Infrastructure
10%
Transport
24%
Hidrocarbons
1%
Electrical
Energy
37%
AND KEEP GROWING …
Source: Association for the Promotion of National Infrastructure - AFIN (by its Spanish acronym)

16. PROMOTING INVESTMENT THROUGH PPP
 PPP are mainly implemented in the form of a concession and generally,
the concessionaire is expected to be responsible for the design,
financing, construction, operation and maintenance of public
infrastructure works or public service provision.
 It can be promoted from a state initiative or an unsolicited proposal.
 Self sustainable / Co-financed.
 It is not necessary for the companies interested in participating in the
bidding to be stablished in Peru. Only when awarded they will have to
set up a company for the purpose of the concession.
 Open and transparent international bidding process.
 Interaction with the market.

17. PROMOTING INVESTMENT THROUGH PPP
Investment commitment US$ MM
PPP Evolution 2005- 2014
1,342
744
291
912
1,563 1,902
3,663
701
4,543
9,983
5
4
5
11
12
18
9
5
12
11
20
18
16
14
12
10
8
6
4
2
0
$12,000
$11,000
$10,000
$9,000
$8,000
$7,000
$6,000
$5,000
$4,000
$3,000
$2,000
$1,000
$0
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Investment US$ MM ( No VAT) PPP processes
Source: ProInversión. Updated as of Oct, 2014

18. MAIN PRINCIPLES TO PROMOTE PRIVATE
INVESTMENT IN PUBLIC INFRASTRUCTURE
MAXIMUM EFFICIENCY IN THE SERVICE TO GIVE
TRANSPARENCY
SOCIAL AND ENVIROMENTAL ACCEPTABILITY
TECHNICAL AND ECONOMIC FEASIBILITY OF THE PROJECT
BANKABILITY
GENERATOR OF COMPETITION
TECHNICAL, FINANCIAL AND LEGAL
REQUIREMENTS ON THE BIDDERS

19. Pe r u i s a coun t r y th a t grows an d bu i ld s i t s fu tu r e
Discover a rich and generous land
Discover its opportunities

20. TRANSPORT
INFRASTRUCTURE

21. INFRASTRUCTURE HIGHLIGTHS
 PPP are promoted to accelerate the development of transport
infrastructure, in order to improve connectivity and
competitiveness levels.
 We intend to consolidate the country as a Business Hub in the
South American Pacific.
 The implementation of the Metro for Lima and Callao will give
more fluidity, innovation and safety to an urban transport
systemin this city with more than 10 million people.
 The Longitudinal de la Sierra Highway will promote social
inclusion and market development in the Andean regions.

22. LINES 3 AND 4 - THE METRO OF
LIMA AND CALLAO
Concession, through two independent bids, of two
lines of the network of the metro of Lima and Callao
for the design, financing, construction, equipment,
operation and maintenance of 62 Km of this
transportation system, which serves a city of more
than 10 millions of inhabitants.
 Estimated Investment: Under evaluation
 Type of concession: Co-financed
 Concession period: 35 years
Line 3 Line 4
32 Km 30 Km
Approximated length
Estimated date of award 2016 2016
TO BE CALLED
Lima and Callao

23. FAST MONORAIL MASS TRANSPORTATION
SYSTEM - AREQUIPA
An unsolicited proposal for the design,
construction, electromagnetic equipment,
systems, rolling stock, financing, operation
and maintenance of a 14 Km fast mass
transportation system (on elevated track) in
the Arequipa Metropolitan Area.
 Estimated Investment: Studies in progress
 Type of concession: Co-financed
Estimated date of award: Q3 2015
UNDER EVALUATION
Arequipa

24. LONGITUDINAL OF THE SIERRA HIGHWAY,
SECTION 4 AND 5
Concession, through two independent bids,
of the improvement, restoration, initial
periodical maintenance, operation and
maintenance of more than 1,300 Km on two
sections of this major highway across the
Peruvian highlands, in order to improve
ease of transit.
Approximate
Length
Estimate
award date
Section 4 965 km Q3 2015
Secton 5 422 km Q4 2015
 Estimated investment: US$ 720 million
 Modality: Co-financed
TO BE CALLED

25. LOGISTIC PLATFORM AND TRUCK
CENTER OF PORT OF CALLAO
The project comprises the design, financing, construction,
operation and maintenance of a logistics and outer
harbor area of Callao port to be located 2 km away from
the port and 1 km from Jorge Chavez international
airport, in an area of approximately 33.5 ha.
 The logistics platform will attend the port cargo and
concentrate the main logistics freight operators by
placing them in a zone near the port and the airport,
in order to increase competitiveness and reduce costs
thereof logistics and transport.
 Truck center to parked freigth vehicules. It will have a
management system moves in and out of vehicles and
a truck center.
 Estimated investment: Under evaluation
 Type of concession: Self –sustaining
Estimated award date: 2015
TO BE CALLED

27. ENERGY HIGHLIGTHS
 The expected growth of Peruvian economy and its future
sustainability require the continuous development of the
energy sector.
 Water and natural gas are the most important sources of
electricity generation.
 Our electricity production rates have increased by 6.62% in
average over the last 10 years.
 The need to secure electricity supply levels in the medium and
long terms creates a wide range of investment opportunities in
the energy sector.
 Restructuring of the energy matrix will generate new
investment opportunities.

28. 220 kV NEW CÓRPAC SUBSTATION AND
220 kV INDUSTRIALES - CÓRPAC TRANSMISSION LINES
Concession for the design, financing, construction, operation
and maintenance of the following projects:
New Córpac Substation (underground)
220 kV Industrial Transmission Lines - Córpac (underground)
The upgrade of electric power supply will allow to meet the
increasing demand in the districts of Ate, Cercado de Lima, La
Victoria, Miraflores, San Isidro, San Borja (particularly in
commercial and financial areas in the latter three districts) and
San Luis.
 Estimated investment: US$ 148 million
 Type of concession: Self-sustained
 Concession period: 30 years plus the construction period
(about 25 months)
Estimated date of award: Q2 2015
Industrial
Substations
CALLED
Lima
Industrial
TLs - Córpac
San Borja
Ate
New
Córpac
Substatio
n

29. ELECTRIC POWER SUPPLY FROM NEW
HYDROELECTRIC POWER PLANTS
Contract for the purchase of 1,200 Mw of power in
years 2020 and 2021, to be generated by new
hydroelectric power generation projects that will be
incorporated to the National Electric Power Grid
(SEIN).
 Estimated Investment: US$ 2.7 billion
 Type of concession: Self-sustained
Estimated date of award: Q2 2015
TO BE CALLED
Nationwide

30. QUILLABAMBA THERMAL POWER PLANT
Concession for the design, financing,
construction, operation and financing of a
200 Mw thermal power plant to be located
in Quillabamba (department of Cusco)
which shall begin operations in 2017 and
be connected to The National Electric
Power Grid (SEIN)
 Estimated investment: US$ 200 million
 Type of concession: Self sustained
Estimated date of award: Q2 2015
TO BE CALLED

31. LNG SUPPLY SYSTEM FOR THE
DOMESTIC MARKET
CALLED
Concession to provide with natural gas (NG) supply
system to be used in emergency situations (failure in NG
production in the forest, or in its transportation from the
forest to the Peruvian coast). The system comprises
back-up storage capacity for 130,000 m3 and facilities of
regasification and shipping of 400 MMSCFD of NG, in
order to guarantee the supply of fuel to users in Lima
and Callao for up to seven days.
 Estimated investment: US$ 250 million
 Type of concession : Self-sustained
 Concession period: 20 years plus the
construction period (30 months)
Estimated date of award: 2015

32. LPG SUPPLY SYSTEM FOR
LIMA AND CALLAO
CALLED
Concession for the design, financing,
construction, operation and maintenance of a
LPG transportation system from the producer,
located in the province of Pisco, Ica to the
storage (300,000 barrels) and shipping (50,000
barrels/day) plant at the south of Lima.
 Estimated investment: US$ 250 million
 Type of concession : Self-sustained
Estimated award date: 2015

33. SANITATION
AND HEALTH

34. SANITATION SECTOR HIGHLIGTHS
A growing drinking water and sanitation infrastructure,
particularly in rural areas, is a crucial goal to improve the health
and well-being of more Peruvians.
Sanitation services are currently provided by companies owned
by local governments (EPS).
The Government is promoting new laws for the modernization
of water and sanitation services, including the promotion of
private investments for the development of the sector.

35. MAIN WORKS AND CONDUCTION OF
DRINKING WATER SUPPLY FOR LIMA
TO BE ANNOUNCED
Concession for the design, financing, construction, operation and
maintenance of the following infrastructure projects in the
departments of Lima and Junín:
 Re-enlargement of the Pomacocha and Huallacocha Bajo dams
(about 90 MCM)
 Trans-Andean tunnel (about 10 Km)
 New drinking water plant (5 m3/s)
 South branch pipeline (about 26 Km), including six reservoirs
(total storage volume: 24,000 m3) and works for the
interconnection with the current drinking water supply system.
The concession also includes the operation and maintenance of the
following facilities:
 Current drinking water plant (5 m3/s)
 North branch pipeline (27.1 Km), including four compensation
reservoirs (total storage volume: 23,000 m3 )
 Estimated investment: US$ 400 million
 Modality: Self-sustained
 Concession period: 30 years
Estimated date of award: Q1 2015
CALLED

36. REGULATION WORKS OF
THE CHILLÓN RIVER
Concession for the design, financing, construction,
operation and maintenance of the following infrastructure
projects, intended to ensure drinking water supply to the
districts of North Lima.
 Jacaybamba dam (about 28 million m3) located in the
province of Canta, northeast of Lima.
 Pipeline (about 30 Km) for an average flow rate of
about 1.5 m3/s, from the projected water intake on the
Chillon River to the current Chillon drinking water
plant.
 Estimated investment: US$ 70 million
 Type of concession: Self-sustained
 Concession period: 20 to 30 years
Estimated date of award: 2015
TO BE CALLED

37. HEALTH SECTOR HIGHLIGTHS
Health services are provided by the Ministry of Health’s (MINSA)
network of health facilities, the independent hospital network of
Peru’s Social Security System (ESSALUD) and private hospitals.
The sector offers a high growth potential (continuous economy
growth, increasing GDP per capita, a large young population).
Private investments are sought to improve hospital infrastructure
and increase the coverage and quality of health services.

38. THREE NEW HIGH-COMPLEXITY HOSPITALS
Concession of the design, construction,
equipment, operation and maintenance of
complementary services (blue-collar services) in
high-complexity hospitals in the Peruvian Social
Security System (ESSALUD): a new one in the city
of Lima (Instituto de Salud del Niño y
Adolescente) and two in provinces (Piura and
Chimbote)
 Estimated Investment: Studies in progress
Estimated date of award: Q3 2015
TO BE CALLED

39. SOLID WASTE MANAGEMENT IN HEALTH FACILITIES
UNDER THE MINISTRY OF HEALTH IN METROPOLITAN
LIMA
An unsolicited proposal that comprises the construction,
operation and maintenance of a modern solid waste
treatment plant (hazardous bio-contaminated/
hazardous special/common) for the
project’s integral management.
Estimated Investment: Pre-investment studies in progress
Type of concession: Co-financed
Estimated date of award: 2016
UNDER EVALUATION
Lima and Callao

40. CORRECTIONAL
SYSTEM

41. CORRECTIONAL SYSTEM HIGHLIGTHS
 The government proposes the restoration, re-location
and/or modernization of the existing
correctional facilities as a part of its efforts to
improve our correctional system.
 The sector provides new opportunities aiming to
decongest prisons and improve related services.

42. RE-LOCATION OF CORRECTIONAL FACILITIES
Re-location of four correctional facilities that are
currently in the urban areas of Metropolitan Lima and
the department of Cusco. The project is intended to
promote the participation of the private sector in the
construction of new replacement correctional facilities
in more appropriate areas, under high-quality safety
standards
1.Chorrillos Women’s Facility (ordinary) and annex.
2. Lurigancho
3. Miguel Castro Castro.
4. Cusco and Cusco Women’s Facility
 Estimated investment: Under evaluation
Estimated date of award: Q2 2015
TO BE CALLED
Lima and Cusco

43. CORRECTIONAL INFRASTRUCTURE AND URBAN
RENEWAL: “TINKUY PLAZA PROJECT”
An unsolicited proposal for the construction of a
shopping center, houses, warehouses and parking lots
on the current location of the San Jorge Prison (Historic
center of Lima). Additionally, it includes the
construction and equipping of a new correctional
facility where the San Jorge inmates will be transferred.
 Estimated investment: Under evaluation
 Type of concession: Self-sustained
Estimated date of award: Q3 2015
UNDER EVALUATION
Lima

45. TELECOMMUNICATIONS HIGHLIGTHS
 The national bandwidth expansion plan is underway, including the
promotion of PPPs to enhance Internet services throughout the
country (optic fiber and mobile data).
 The National Optical Fiber Backbone Network Project (13,000 Km
of optic fiber), granted in concession in 2013, will take these
services to the interior of the country, increasing the efficiency of
the 22 regions involved in the project and support their economic
development.
 The next step is awarding the processes that will progressively
take these services to their final users in the regions that will
benefit from the NOFBN Project.

46. BROADBAND INTERNET ACCESS
FOR FOUR PERUVIAN REGIONS
Concession, through four independent bids, to
implement broadband internet access in four Peruvian
regions (Apurímac, Ayacucho, Huancavelica,
Lambayeque). The project involves the
implementation of a high-capacity fiber optic network
and an access network (microwaves).
Region Location Required fiber
length
Estimated
investment
USD million
1.Ayacucho Central-Southern
highlands
1,900 Km 54.9
2.Apurímac Southern highlands 1,400 Km 42.3
3.Huancavelica Central-Southern
highlands
1,330 km 46.8
4.Lambayeque Northern coast 570 Km 19.0
 Type of concession: Self sustained
 Estimated award date: IV Q 2014
1
2
3
4

47. 700 MHZ 4G BAND
Concession of three 698–806 MHz band
blocks to provide nationwide 4G
broadband internet access services. The
band is initially expected to be channeled
in 15 MHz + 15 MHz blocks
 Estimated investment: Under evaluation
 Type of concession: Self sustained
Estimated date of award: Q2 2015

48. MINING

49. MINING HIGHLIGTHS
 The notable increase in mining investment in Peru has lead to
an historical record the year 2013: more than US$ 9,720 million.
 There are about 400 mining units under exploration and some
more in early prospecting.
 Exploration investments in Peru have sustained its growth for
over six years and the last four year it has shown significant
development.
 Peru remains among the main investment destinations for
exploration budgets worldwide.

50. 05 MINING EXPLORATION PROSPECTS IN THE
NORTH AND CENTRAL REGIONS IN THE SOUTH OF
PERU
TO BE CALLED
Investment projects under transfer option
contracts for a term of three to four years for the
exploration and the feasibility study.
PROJECTS AWARD AREA
04 prospectus in Apurimac:
•Colca: Cu, Mo, Ag, Au, Pb 2016 14,100 ha
•Jalaoca: Cu, Mo, Ag, Au, Pb 2016 6,400 ha
•Antabamba: Cu, Mo, Au, Zn 2017 19,200 ha
•Suparaura: Cu, Fe 2017 2,000 ha
01 prospectus in La Libertad
•Pampa Grande: Au, Ag 2017 8,700 ha

51. www.proinversion.gob.pe
contact@proinversion.gob.pe