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PERU: INVESTMENT OPPORTUNITIES IN
MINING, ENERGY AND INFRASTRUCTURE
Milton von Hesse La Serna
Executive Director
2. Peru: A country with mining and energy potential
3. Projects portfolio: 2012 - 2013
1. Peru: An attractive investment destination
INDEX
PERU: AN ATTRACTIVE INVESTMENT
DESTINATION
PROINVERSIÓN is a public agency, under the scope of the Ministry of Economy and Finance. It is self-governed in
technical, functional, administrative and budgetary matters.
1996
1991
1991-2002 Comission for the Promotion of Private Investment
(COPRI) and Special Committees / Leg. Decree N°674 – Law on the
Promotion of Private Investment in State-owned Companies
1998 2002
2002 – to date PROINVERSIÓN
Executive Division FOPRI + COPRI + National
Commission of Foreign Investment and Technology
(CONITE) + Management of Economic Promotion of
the Comission for the Promotion of Peru –
PROMPERÚ / Supreme Decree 027-2002-PCM
1996-1998
Comission for
the Promotion
of Private
Concessions–
PROMCEPRI
and Special
Committees
Supreme
Decree 059-96
– PCM
Concessions
Single Revised
Text
PROMCEPRI duties
transferred to
COPRI / Urgency
Decree N°025-98
Agenciespromotingprivateinvestment
2008
Legislative Decree
1012 – Framework
Law for PPP
PROINVERSION
PROINVERSION’S EXPERIENCE
Since 1991, COPRI (former commission for privatizations) and to date Proinversion, have
carried out 381 projects achieving US$ 35 billion in investment commitments.
US$ 35 billion in investments for national development
Modality N° of process
Transactions in US$ million
(VAT not included)
Estimated Investment in US$
million (VAT not included)
Privatizations 267 9,591 20,858
Concessions 66 648 12,989
Transfer options 23 23 438
Capitalizations 4 897 -
Private initiative 7 22 344
FITEL's projects 11 - -
Other modalities 3 178 247
Total 381 11,359 35,040
Inflation
(annual % variation )
MACROECONOMIC OVERVIEW
GDP real
(annual % variation )
Outstanding macroeconomic performance over the last 10 years
5.0
4.0
5.0
6.8
7.7
8.9
9.8
0.9
8.8
6.9
0.0
2.0
4.0
6.0
8.0
10.0
12.0
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
1.5
2.5
3.5
1.5 1.1
3.9
6.7
0.2
2.1
4.7
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Source: Central Reserve Bank of
Peru - BCRP.
8.4 9.2 10.5
12.3
15.1
19.5
27.3
22.4
29.5
34.6
0
5
10
15
20
25
30
35
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Private investment
(US$ billion)
A FUTURE PERSPECTIVE
Source: IMF, Central Reserve Bank of Peru - BCRP.
3.0
3.4
3.7
4.3
4.7
4.8
6.0
Venezuela
Mexico
Argentina
Brazil
Chile
Colombia
Peru
GDP World and Peru
(variation % real)
Peru will continue leading regional growth for the next years
Forecast - LATAM: Real GDP 2012-2014
(Average annual % variation)
Source: IMF, Central Reserve Bank of Peru - BCRP.
4.0 4.0
1.5
-2.3
4.0
3.0
3.2
3.6 3.9 4.0
7.7
8.9
9.8
0.9
8.8
6.9 5.6
6.0 6.0 6.0
-4.0
-2.0
0.0
2.0
4.0
6.0
8.0
10.0
12.0
2006 2007 2008 2009 2010 2011 2012* 2013* 2014* 2015*
Mundo Perúworld Peru
Country S&P Fitch Moody s
Chile A+ A+ Aa3
Mexico BBB BBB Baa1
Brazil BBB- BBB Baa2
Peru BBB BBB Baa3
Colombia BBB- BBB- Baa3
Bolivia B+ B+ B1
Venezuela B+ B+ B2
Argentina B B B3
Ecuador B- B- Caa2
The responsible economic policy granted Peru the investment grade and investors’ confidence
INTERNATIONAL CONFIDENCE RECOGNITION
Investment grade
Latin American benchmarking
Source: Standard & Poor`s, Fitch Ratings and Moody´s.
Updated to March 2, 2012
Country
1 Chile
2 Peru
3 Uruguay
4 Colombia
5 Brazil
6 Paraguay
7 Argentina
8 Ecuador
9 Bolivia
10 Venezuela
Source: Annual ranking of top economies for business 2011, Forbes
magazine
Peru ranks second in the list of the best places
for doing business in Latin America
 Non discriminatory treatment: Foreign investors receive the same treatment as local
investors.
 Unrestrictive access to most economic sectors *.
 Free transfer of capital.
 Free competition.
 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 Organization for Economic Co-
operation and Development (OECD) – It promotes the implementation of the Guidelines for
Multinational Enterprises.
*Investments that require authorization: Located within 50 km in the frontier line and those destined to arms, ammunitions and explosive. Likewise, a
principal local partner for investments in maritimecabotage as well as in air transport is required.
FRIENDLY INVESTMENT ENVIRONMENT
Peru offers a favorable legal framework for foreign investment …
PERU: A COUNTRY WITH MINING
AND ENERGY POTENTIAL
Peru promotes private investments to foster competitiveness and sustainable
development by encouraging PPP in infrastructure projects as well as
investments that make possible the country reaches its productive
development
PERU
INVESTMENT OPPORTUNITIES IN A WIDE
RANGE OF ACTIVITIES
PERU: A MINING COUNTRY
Source: U.S.Geological Survey-USGS – Report 2012
Metal
South America
rank
World
rank
Gold 1 6
Silver 1 3
Zinc 1 3
Tin 1 3
Lead 1 4
Copper 2 2
Leader in mining production
Metal
World
rank
% World
reserves
Gold 8 4%
Silver 1 22%
Zinc 3 8%
Tin 6 6%
Lead 4 9%
Copper 2 13%
Great mining potential to be explored
Peru is leader in mining production and is one of the
countries with the largest reserves of silver, copper, zinc,
lead, tin and gold in the world
INVESTMENT WORLD DESTINATION IN
MINING EXPLORATION 2011
Source: Metal Economics Group, 2012
In South America, Peru is the second most important destination for exploration after Chile
MINING PROJECTS
Copper Projects
Gold Projects
Iron Projects
The ongoing mining projects totals an
estimated investment for US$53 billion
Source: Ministry of Energy and Mines, April 2012
Silver Projects
PERU: A COUNTRY WITH ENERGY POTENTIAL
Source: Ministry of Energy and Mines
Energy resources Total potential
(MW)
Capacity used
(MW)
Hydroelectric 70,000 3,118
Wind power 22,000 142
Biomass 450 27,4
Geothermal 3,000 0
Peru has a huge potential for energy generation
Peru’s energy matrix
Energy production 2011
Energy potential
Hydrocarbons Proven reserves Probable reserves
Oil (million of barrels) 582 942
Natural gas (billion of cubic feet) 12,462 10,622
Oil and gas natural reserves
(2010)
Lots with exploitation contracts
for oil operations 2010
Lots with exploration contracts
for oil operations 2010
HYDROCARBONS OPERATIONS
PACIFIC
OCEAN
BRAZIL
Source: Ministry of Energy and Mines.
Natural gas projectsOil projects
Dynamic private investment in hydrocarbons projects
SOME INTERNATIONAL COMPANIES THAT
ALREADY INVEST IN PERU
Canadá
SILVER
GOLD
Canada
USA
South Africa
COPPER
Canada
Mexico
Switzerland
USA
China UK - Australia
South Africa
United Kingdom
PHOSPHATE
Brazil
ZINC
Canada
Peru
Brazil
Source: PERUPETRO, Ministry of Energy and Mines.
OIL AND NATURAL GAS
PROJECTS PORTFOLIO: 2012-2013
PROJECTS PORTFOLIO: 2012-2013
SECTOR
N°
PROJECTS
ESTIMATED
INVESTMENT/TRANSACTION
(US$ MILLION)
%
Roads 2 3,851 37%
Railroad 1 3,000 29%
Hydrocarbons 3 1,090 11%
Telecommunication 3 718 7%
Energy 5 585 6%
Agriculture and irrigation 2 503 5%
Airports 1 420 4%
Ports and Navigability 2 139 1%
Sanitation 1 36 0.3%
Tourism 1 11 0.1%
Culture 1 ---- ----
Capital Markets 2 ---- ----
Mining 2 ---- ----
Total 26 10,352 100%
Private investment promotion process 2012 - 2013
26 projects
PROJECTS PORTFOLIO:
2012-2013
o Roads
o Railroads
o Airports
o Ports and navigability
o Energy
o Hydrocarbons
o Telecommunication
o Tourism
o Agriculture and irrigation
o Culture
o Sanitation
o Mining
o Capital markets
PROJECTS PORTFOLIO: 2012-2013
PROJECTS PORTFOLIO: 2012-2013
LIMA AND CALLAO ELECTRIC MASS TRANSPORTATION
SYSTEM- LINE 2
 Location: City of Lima.
 Description: The project traverses 12 districts of
Metropolitan Lima with an extension around 35 km from
the initial point in Ate to the final point in Callao.
It also comprises financing, design, construction,
operation, provision of electromechanical equipment and
rolling material, and maintenance of the line.
• Estimated investment: US$ 3,000 million.
• Concession term: To be defined
• Type of concession: Comprehensive project bid.
 Current status: The pre-investment studies are under
elaboration and then the call for tender will be made.
 Award date: IV Quarter 2013
TO BE CALLED
ELECTRIC MASS TRANSPORTATION SYSTEM NETWORK
Line 1 (South – North)
From Villa El Salvador to San Juan de
Lurigancho
Line 2 (East – West)
From Ate Vitarte to Callao
Line 3 (South – North)
From Santiago de Surco to Carabayllo
Line 4 (East –West)
From Ate Vitarte to Callao
Line 5 (South – North)
From Chorrillos to Miraflores
 Location: Departments of Arequipa, Moquegua and
Tacna.
Description: Concession to build, operate and transfer
sections: Dt. Quilca – Dt. Arequipa; Dt. Matarani – Dt.
Moquegua; Dt. Ilo – Tacna – La Concordia. It will have
an estimated length of 430 km and will be part of
Panamericana Sur highway: Ica – border with Chile.
• Estimated investment (VAT not included): US$
50.8 million approximately.
• Type of concession: Comprehensive project bid.
Self-sustaining.
• Concession term: 25 years.
 Current status: The final version of the contract is
published on Proinversión’s web site and waiting for
opinion by MTC, MEF and OSITRAN.
 Award date: III Quarter 2012.
PANAMERICANA SUR HIGHWAY: ICA – BORDER WITH CHILE:
SECTION DT. QUILCA – DT. AREQUIPA; DT. MATARANI – DT.
MOQUEGUA; DT. ILO – TACNA – LA CONCORDIA
LA CONCORDIA
TACNA
DV. ILO
DV. MOQUEGUA
DV. AREQUIPA
DV. MATARANI
DV. QUILCA
AREQUIPA
MOQUEGUA
TACNA
THE CALL FOR
TENDER WAS MADE
TO BE CALLED
 Description: Concessions for building roads by sections
established by the MTC to interconnect Peruvian towns
and cities.
Likewise, these roads will allow to lay pipelines along
them for the installation of optical fiber.
• Estimated investment (VAT included): US$3,800
million (approximately)
• Concession term: To be defined.
• Current status: Under evaluation by the Ministry of
Transport and Communication –MTC, Ministry of
Economy and Finance – MEF and Proinversion.
 Award date: As from 2013
ROAD CONCESSIONS *
* Road section projects established by the MTC part of Longitudinal de la Sierra and Longitudinal de la Selva, IIRSA Centro among
others are included.
NEW INTERNATIONAL AIRPORT OF CHINCHERO –
CUSCO
 Location: District of Chinchero, Province of Urubamba,
Department of Cusco.
 Description: Concession to design, build, finance, manage,
operate, maintain and exploit the new international
airport of Chinchero – Cusco.
• Estimated investment (VAT included): US$ 420
million
• Type of concession: Comprehensive Project Bid.
• Concession term: 40 years
 Current status: The scheme project is under evaluation.
 Award date: As from 2013.
THE CALL FOR
TENDER WAS MADE
GENERAL SAN MARTÍN PORT TERMINAL (PISCO)
 Location: District of Paracas, province of Pisco, region of
Ica, 220km from Callao port.
 Description: Concession to design, build, finance, maintain
and operate the General San Martín port terminal.
 Estimated investment (VAT not included): US$ 93.20
million.
 Type of concession: Comprehensive project bid. Self-
sustained.
 Concession term: 30 years.
 Current status: Promotion plan and reformulated Tender
Documents were approved.
 Award date: I Quarter 2013
THE CALL FOR
TENDER WAS MADE
PACIFIC
OCEAN
UPGRADING AND MAINTENANCE OF NAVIGABILITY
CONDITIONS OF RIVERS HUALLAGA, UCAYALI,
MARAÑON AND AMAZONAS
 Location: Rivers Huallaga, Ucayali, Marañón and
Amazonas (Department of Loreto and Ucayali)
 Description: Development of dredging works, and
signposting in order to assure the navigability and
therefore the traffic between the port terminals of
Yurimaguas, Pucallpa and Iquitos.
 Type of concession: Comprehensive project bid.
Co-financed.
• Estimated investment (VAT not included): US$ 45.8
million
 Current Status: The final report of feasibility study is
under evaluation.
 Award date: II Quarter 2013.
TO BE CALLED
MASS USE OF NATURAL GAS NATIONWIDE
TO BE CALLED
PACIFIC
OCEAN
 Cities to be supplied : Trujillo, Chimbote, Huaraz, Arequipa,
Moquegua, Ilo, Tacna, Cusco, Quillabamba, Juliaca, Puno,
Ayacucho, Huancavelica, Abancay, Chiclayo, Lambayeque,
Cajamarca, Huancayo, La Oroya, and Tarma. These cities will be
grouped for concession purpose.
 Description: The distribution system of natural gas includes:
 Land or sea transport of liquid or compressed natural gas
from the gas liquefaction plant Pampa Melchorita —
170km south of Lima— to cities to be supplied.
 Re gasification in the borders of the above-mentioned
cities.
 Supply of natural gas to final users through gas pipelines.
• Estimated investment (VAT not included): US$ 600 million.
• Type of concession: Comprehensive project bid. Self-
sustaining.
• Concession term: 20 years.
• Competition factor: Commitment of the largest number of
users connected.
 Current status: Technical studies are being carried out. The
commitment of liquid gas supply between the State and Repsol
is pending to be signed.
 Award date: IV Quarter 2012
Brazil
 Location: Southern zone of Lima
 Description: Concession to design, finance, operate, and maintain the
LPG transport system from the producer facilities (Pisco) to Lima
province border.
The project includes:
• A pipe of 250 km approximately from Pisco to a terminal located
between Lurín and Conchán. Initial transportation of 1,000 tonnes
of LPG daily is estimated.
• A storage and service terminal to be placed between Lurín and
Conchán.
• Pumping station, measurement equipment, valve, pig traps and
communication equipments.
• Estimated investment (VAT not included): US$ 90 million.
• Type of concession: Comprehensive project bid. Self-
sustaining.
• Concession term: 20 years plus the construction period (28
months).
• Competition factor: The lowest service cost.
 Current status: The Tender Documents and the contract first version
are published on Proinversión’s web site.
 Award date: IV Quarter 2012
SUPPLY SYSTEM OF LPG FOR LIMA AND CALLAO
THE CALL FOR
TENDER WAS MADE
 Location: Province of Cañete, Department of Lima.
 Description: Concession to design, finance, build, operate and
maintain a supply system that will allow to have a reserve of
liquid natural gas produced at the gas liquefaction plant of
Pampa Melchorita - 170 km south of Lima - and re gasify it for
emergency periods. The reserve will be used, if necessary, mainly
to supply thermal plants located in Chilca - 64 km south of Lima.
• Estimated investment (VAT not included): US$ 400 million.
• Concession term: 30 years.
• Type of concession: Comprehensive project bid. Self-
sustaining.
• Competition factor: The lowest service cost.
 Current status: The financing scheme and Tender Documents are
to be defined .
 Award date: IV Quarter 2012
LNG SUPPLY SYSTEM FOR DOMESTIC MARKET
TO BE CALLED
Pucallpa
Puerto
Maldonado
STAND-BY RESERVE: 35-40 MW PUCALLPA PLANT AND
15 -18 MW PUERTO MALDONADO PLANT
 Location : Departments of Ucayali and Madre de Dios.
 Description: Concession of the power and energy supply to
national grid as a Stand-by reserve to ensure supply in
emergency periods.
To guarantee supply, the design, financing, construction
operation and maintenance of two new thermoelectric power
stations to be located in Pucallpa (35 -40 MW) and Puerto
Maldonado (15 - 18 MW) is expected.
• Estimated investment (VAT not included): US$ 55
million.
• Type of concession: Comprehensive project bid. Self-
sustaining.
• Concession term: 20 years plus the construction period
(24 months).
• Competition factor: The lowest remuneration per power
offered.
 Current status: There are three short-listed bidders: Cobra
Instalaciones y Servicios S.A., Consorcio Energias del Perú, and
Consorcio Servicios Integrales de Energía.
 Award date: 05.10.2012
PACIFIC
OCEAN
THE CALL FOR
TENDER WAS MADE
220 kW CARHUAQUERO - CAJAMARCA NORTE CACLIC -
MOYOBAMBA TRANSMISSION LINE
 Location: Departments of Lambayeque, Cajamarca, Amazonas
and San Martin.
 Description: Concession to design, finance, build, operate and
maintain the line to increase the transmission capacity of
electric power to the northern area of the country. It will have
400 km length and will supply power of 220 MVA through a
single circuit.
• Estimated investment (VAT not included): US$ 130
million.
• Type of concession: Comprehensive project bid. Self-
sustaining.
• Concession term: 30 years plus the construction period
(38 months).
• Competition factor: The lowest cost of total service.
 Current status: The Tender Documents and contract second
draft are published on Proinversión’s web site.
 Award date: III Quarter 2012
THE CALL FOR
TENDER WAS MADE
PACIFIC
OCEAN
BRAZIL
 Location: Department of Cusco
 Description: Concession to design, finance, build, operate and
maintain the line to increase the transmission capacity of
electric power to the southern area of the country, and
reinforce the bidirectional connection between the subsystems
of the area and allow the future connection of new charges
and/or electric power plants.
• Estimated investment (VAT not included): US$ 70
million.
• Type of concession: Comprehensive project bid. Self -
sustaining.
• Concession term: 30 years plus the construction period
(38 months).
• Competition factor: The lowest cost of total service.
 Current status: The Tender Documents are published on
Proinversión’s web site.
 Deadline to submit a short-listing request: May 25, 2012.
 Award date: III Quarter 2012.
220 kW MACHU PICCHU – QUENCORO - ONOCORA -
TINTAYA TRANSMISSION LINE
THE CALL FOR
TENDER WAS MADE
PACIFIC
OCEAN
BRAZIL
Moyobamba
Iquitos
220 kW MOYOBAMBA – IQUITOS TRANSMISSION
LINE
 Location: Departments of Loreto and San Martín.
 Description: Concession to design, finance, build, operate and
maintain the line which length is 600 km approximately, to
increase the electricity transmission capacity to the eastern zone
of Peru (Departments of Loreto and San Martin) and interconnect
the electricity systems in these departments with the National
Grid.
• Estimated Investment (VAT not included): US$ 330 million.
• Type of concession: Comprehensive Project Bid. Self
sustaining.
• Concession term: 30 years plus the construction period (52
months).
• Competition factor: The lowest service total cost.
 Current Status: Tender Documents and the contract first version
are published on Proinversión’s web site.
 Deadline to submit a short-listing request: June 28, 2012.
 Award date: IV Quarter 2012.
THE CALL FOR
TENDER WAS MADE
PACIFIC
OCEAN
PACIFIC
OCEAN
BRAZIL
ENERGYSUPPLY TOTHE CITYOF IQUITOS70MW
Iquitos
 Location: Department of Iquitos.
 Description: Concession of the supply of power and energy to
the national grid. In its first stage, it will run based on a regular
supply that will end once the operation of Moyobamba – Iquitos
transmission line begins. In the second stage, the supply will be
as a stand-by reserve. The design, financing, construction,
operation and maintenance of new thermoelectric power
stations to be placed in Iquitos (70 MW) are considered.
• Estimated investment (VAT not included): To be defined.
• Type of concession: Comprehensive project bid. Self-
sustaining.
• Concession term: 20 years plus the construction period (24
months).
• Competition factor: The lowest payment offered per power,
once the plant operates as stand-by reserve.
 Current status: The promotion plan has been approved and the
Tender Documents and contract draft are under elaboration.
 Award date: IV Quarter 2012.
TO BE CALLED
899-915 MHZ AND 944 - 960 MHZ BAND IN LIMA AND
CALLAO AND 902 - 915 MHZ AND 947 - 960 MHZ BAND FOR
THE REST OF THE COUNTRY
 Location: Nationwide.
 Description: The project involves the selection of a
telecommunication operator that will render mobile
telecommunications services in 899-915 MHz and 944-
960 MHz Bands in the province of Lima and the constitutional
province of Callao and 902-915 MHz and 947-960 MHz Bands for the
rest of the country.
These Bands of data and voice communication will increase the
mobile telephony coverage in areas of low penetration and will
foster competition in our country.
• Estimated Investment ( VAT not included): US$ 297.7 million
• Concession term: 20 years, renewable.
• Type of concession: Special public bid. Self-sustaining.
• Competition factor: The best economic offer.
 Current status: The Tender Documents and the contract first version
are published on Proinversión’s web site. There are two short-listing
bidders.
 Award date: III Quarter 2012.
THE CALL FOR
TENDER WAS MADE
1710-1770 MHZ AND 2110-2170 MHZ BAND
NATIONWIDE
 Location: Nationwide
 Description: The project involves the selection of
telecommunication operators that will be in charge of providing
Public Telecommunication Services in Blocks A and B of the 1710-
1770 MHz and 2110-2170 MHz bands. The same bidder will not be
awarded both bands blocks.
The band technical specifications make possible to provide
advanced wireless services (mobile broadband, voice
communication, new applications, high-speed and high-capacity
interactive and multimedia services )
• Estimated investment: To be defined.
• Concession term: 20 years, renewable.
• Type of concession: Special public bid - Self-sustaining.
• Competition factor: Best economic offer.
 Current status: The Tender documents are published on
Proinversión’s web site.
 Award date: IV Quarter 2012.
THE CALL FOR
TENDER WAS MADE
NATIONAL OPTICAL FIBER BACKBONE NETWORK
 Location: Nationwide. Over 10,000 km of optical fiber will be
developed.
 Description: The goal of the project is to globalize a broadband in
Peru through the installation of optical fiber in the Capital of 195
Provinces of the country.
The backbone network will be owned by the Peruvian State.
It will be operated by a neutral operator, without
discriminating the companies that require the service. Charges,
quality and permanence will be controlled. The bidders may
choose the best routes in order to
improve their technical proposals (support network: pole,
energy networks, etc) and economic proposals (the lowest co-
financing).
 Estimated investment (VAT included): US$ 420 million
 Type of concession: Comprehensive project bid. Co-financed by
MTC.
 Competition factor: The lowest financial contribution requested
to MTC.
 Current status: Under formulation stage by the MTC: pre-
investment studies.
 Award date: IV Quarter 2013.
TO BE CALLED
Pacific
Ocean
CHAVIMOCHIC IRRIGATION PROJECT
 Location: Department of La Libertad (Province of Virú, Trujillo and
Ascope)
 Description: The project involves the complementation of Chavimochic
project in order to include 50,000 ha of new lands and improve the
irrigation system of other 50,000 ha in the valley and inter valleys of
Chao, Virú, Moche and Chicama.
1) The III Stage involves the construction of the following works:
a) Reservoir of 370 cubic meter capacity in the Palo
Redondo sector,
b) Third line of Virú siphon;
c) Moche-Chicama canal of 115 km length.
d) Automation and improvement of the Main Canal
2) The operation and maintenance of the entire system (I, II and III
stage)
3) Water supply services for energy and irrigation purposes, as well as
people’s needs.
The public investment already made in the first and second stage
totaled US$ 950 million.
• Estimated investment (VAT not included): US$ 498.8 million (III
Stage works)
• Type of concession: Comprehensive project bid. Co- financed.
 Current status: Feasibility assessment to be concluded.
 Award date: I Quarter 2013
TO BE CALLED
MAJES-SIGUAS PROJECT
LAND SALE OF 1000 Ha LOCATED IN MAJES I
 Location: Department of Arequipa, province of Caylloma.
 Description: Sale of 02 plots of untilled lands of 500 ha
each, with water right of up to 13,500 m3/ha/year.
The plots are located in the lower area of Pampa de
Majes, sector with unbeatable climatic conditions, and
near to Arequipa city and Matarani port.
The Award grants to the respective awardees the right to
exercise the Option to Purchase another contiguous lot of
similar extension, on condition to obtain water from
Majes irrigation surpluses (valid for up to 03 years)
• Referential base price: US$ 4,000/ha
• Estimated transaction (VAT not included): US$ 4.2
million.
• Type of concession: Public Auction.
 Award date: II Quarter 2013
POR CONVOCAR
Arequipa
Majes-Siguas
project
THE CALL FOR
TENDER WAS MADE
OPERATION AND MAINTENANCE, REHABILITATION
AND IMPROVEMENT OF 16 SEDAPAL WWTP
 Location: Districts of Lima where the sixteen (16) WWTP are
located.
 Description: The project involves the operation, maintenance,
renovation and improvement of sixteen (16) SEDAPAL waste
water treatment plants.
The project involves:
•Investments to improve the WWTP design capacity in
compliance with the legislation in force.
•At present, the sixteen WWTP treat a flow of 2.5 m3/s
and it is expected to reach 4 m3/s by the fourth year of
concession.
• Estimated investment (VAT not included): US$ 35.6
million
• Concession term: 20 years.
• Type of concession: Comprehensive project bid. Self-
sustaining.
• Competition factor: The lowest price rate per cubic meter
of treated waste water.
 Award date: II Quarter 2013.
POR CONVOCAR
PRIVATE INITIATIVE
ON PROCESS
KUELAP CABLE CAR
 Location: District of Tingo, province of Luya, department of
Amazonas.
 Description: Concession to design, finance, build, equip and
operate the cable cars system for a fast and modern access
route to Kuelap Fortress.
The cable cars route will be 4,400 meters in order to
overcome the distance of 965 meters between Tingo locality
and Kuelap fortress.
• Estimated investment (VAT included): US$ 10.6 million
• Concession period: 20 – 30 years.
• Type of concession: Comprehensive Project
• Current status: The feasibility study of the project has
been updated. Currently administrative papers of lands
destined to stations and services are being arranged. The
service concession scheme is also under evaluation.
 Award date: II Quarter 2013.
TO BE CALLED
 Location: At the intersection of two of the most important avenues of
Lima (Javier Prado and Aviacion avenues) in the district of San Borja,
province and department of Lima. The NGT, the National Library of Peru
and the National Museum will constitute “The Cultural Axis of Lima” .
 Description: Private- Public Partnership that includes the management of
the Theater, with participation of private investment in order to provide
high quality performance for which it was designed, built and
implemented.
Main characteristics
• The NGT has a capacity of 1500 persons and counts with 7 floors and
4 basements.
• The stage measures 60 meters deep, one of the largest worldwide.
• The orchestra pit will include mobile platform and high technology,
not found in local theaters.
• Adaptable state-of-the-art sound system for any type of shows.
Mobile stages to perform up to 3 shows in the same day.
Watch video of NGT (youtube)
• Estimated O&M costs (20 years): US$ 95 million.
 Current status: Tender Documents are under elaboration to make the
call.
 Award date: III Quarter 2012.
MANAGEMENT OF THE NATIONAL GRAND
THEATER - NGT
Play
Lobitos
TO BE CALLED
HUAYDAY AMBARA MINING PROSPECT
 Location: District of Lucma, rural community of
Lucma, province of Gran Chimú, department of La
Libertad.
 Description: The project involves the concession of a total
area of 3,000 ha. The land presents a coal prospect with
gold exploration potential in the influence area.
The existing coal layer is classified as “clean anthracite”
that can be used in steel and concrete production
processes, and foundries for its high calorific value (over
than 8.000 kcal). The potential for coal to be extracted is
2,3 billion of MT, which 1,23 million of MT (53%) are
inferred resources. The estimated annual production is
66.000 MT and the mine life is at least of 20 years.
• Estimated investment: To be defined.
• Type of concession: Contract of transfer option.
 Award date: IV Quarter 2012.
TO BE CALLED
LUCMA
LA LIBERTAD
CONCESSION OF REMAINING MICHIQUILLAY
PROJECT
 Location: District of Encañada – Community of Michiquillay,
province of Cajamarca, department of Cajamarca, 47 km
north east of Cajamarca; and 908 km from Lima.
 Description: The project involves the transfer to the private
sector of two remaining deposits of Michiquillay of 14, 927
ha.
These deposits have limestone reserves, in three different
geological formation, with over 15 billion MT.
The limestone quality is good reaching over 97% of
CaCO3 with low content of impurity mainly SiO2,Al2O3,
Fe2O3, MgO and others. Due to its strategic location near
to Yanacocha mine and other gold and copper
projects, the prospect will also permit the
exploration of these metals.
• Estimated investment: To be defined
• Type of concession: Contract of Transfer Option.
 Award date: II Quarter 2013.
TO BE CALLED
CAJAMARCA
SECTOR/ PROJECT CURRENT STATUS
ESTIMATED INVESTMENT
US$ MILLION
ESTIMATED AWARD
DATE
1.- Sale of shares held by FONAFE
(Xtrata Las Bambas, Telefonica S.A.,
Clinica Internacional, Norsac, Telefonica
del Peru S.A.A. and Xtrata Tintaya
companies)
To be called Auction III Quarter 2012
2. Sale of shares of Cayalti, Pomalca and
Tuman
Under process – Law
29288
Not applicable – Direct
sale to workers
May 2012
CAPITAL MARKETS PROJECTS PORTFOLIO
contact@proinversion.gob.pe
www.proinversion.gob.pe

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PERU: Investment opportunities in mining, energy and infrastructure

  • 1. PERU: INVESTMENT OPPORTUNITIES IN MINING, ENERGY AND INFRASTRUCTURE Milton von Hesse La Serna Executive Director
  • 2. 2. Peru: A country with mining and energy potential 3. Projects portfolio: 2012 - 2013 1. Peru: An attractive investment destination INDEX
  • 3. PERU: AN ATTRACTIVE INVESTMENT DESTINATION
  • 4. PROINVERSIÓN is a public agency, under the scope of the Ministry of Economy and Finance. It is self-governed in technical, functional, administrative and budgetary matters. 1996 1991 1991-2002 Comission for the Promotion of Private Investment (COPRI) and Special Committees / Leg. Decree N°674 – Law on the Promotion of Private Investment in State-owned Companies 1998 2002 2002 – to date PROINVERSIÓN Executive Division FOPRI + COPRI + National Commission of Foreign Investment and Technology (CONITE) + Management of Economic Promotion of the Comission for the Promotion of Peru – PROMPERÚ / Supreme Decree 027-2002-PCM 1996-1998 Comission for the Promotion of Private Concessions– PROMCEPRI and Special Committees Supreme Decree 059-96 – PCM Concessions Single Revised Text PROMCEPRI duties transferred to COPRI / Urgency Decree N°025-98 Agenciespromotingprivateinvestment 2008 Legislative Decree 1012 – Framework Law for PPP PROINVERSION
  • 5. PROINVERSION’S EXPERIENCE Since 1991, COPRI (former commission for privatizations) and to date Proinversion, have carried out 381 projects achieving US$ 35 billion in investment commitments. US$ 35 billion in investments for national development Modality N° of process Transactions in US$ million (VAT not included) Estimated Investment in US$ million (VAT not included) Privatizations 267 9,591 20,858 Concessions 66 648 12,989 Transfer options 23 23 438 Capitalizations 4 897 - Private initiative 7 22 344 FITEL's projects 11 - - Other modalities 3 178 247 Total 381 11,359 35,040
  • 6. Inflation (annual % variation ) MACROECONOMIC OVERVIEW GDP real (annual % variation ) Outstanding macroeconomic performance over the last 10 years 5.0 4.0 5.0 6.8 7.7 8.9 9.8 0.9 8.8 6.9 0.0 2.0 4.0 6.0 8.0 10.0 12.0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 1.5 2.5 3.5 1.5 1.1 3.9 6.7 0.2 2.1 4.7 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Source: Central Reserve Bank of Peru - BCRP. 8.4 9.2 10.5 12.3 15.1 19.5 27.3 22.4 29.5 34.6 0 5 10 15 20 25 30 35 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Private investment (US$ billion)
  • 7. A FUTURE PERSPECTIVE Source: IMF, Central Reserve Bank of Peru - BCRP. 3.0 3.4 3.7 4.3 4.7 4.8 6.0 Venezuela Mexico Argentina Brazil Chile Colombia Peru GDP World and Peru (variation % real) Peru will continue leading regional growth for the next years Forecast - LATAM: Real GDP 2012-2014 (Average annual % variation) Source: IMF, Central Reserve Bank of Peru - BCRP. 4.0 4.0 1.5 -2.3 4.0 3.0 3.2 3.6 3.9 4.0 7.7 8.9 9.8 0.9 8.8 6.9 5.6 6.0 6.0 6.0 -4.0 -2.0 0.0 2.0 4.0 6.0 8.0 10.0 12.0 2006 2007 2008 2009 2010 2011 2012* 2013* 2014* 2015* Mundo Perúworld Peru
  • 8. Country S&P Fitch Moody s Chile A+ A+ Aa3 Mexico BBB BBB Baa1 Brazil BBB- BBB Baa2 Peru BBB BBB Baa3 Colombia BBB- BBB- Baa3 Bolivia B+ B+ B1 Venezuela B+ B+ B2 Argentina B B B3 Ecuador B- B- Caa2 The responsible economic policy granted Peru the investment grade and investors’ confidence INTERNATIONAL CONFIDENCE RECOGNITION Investment grade Latin American benchmarking Source: Standard & Poor`s, Fitch Ratings and Moody´s. Updated to March 2, 2012 Country 1 Chile 2 Peru 3 Uruguay 4 Colombia 5 Brazil 6 Paraguay 7 Argentina 8 Ecuador 9 Bolivia 10 Venezuela Source: Annual ranking of top economies for business 2011, Forbes magazine Peru ranks second in the list of the best places for doing business in Latin America
  • 9.  Non discriminatory treatment: Foreign investors receive the same treatment as local investors.  Unrestrictive access to most economic sectors *.  Free transfer of capital.  Free competition.  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 Organization for Economic Co- operation and Development (OECD) – It promotes the implementation of the Guidelines for Multinational Enterprises. *Investments that require authorization: Located within 50 km in the frontier line and those destined to arms, ammunitions and explosive. Likewise, a principal local partner for investments in maritimecabotage as well as in air transport is required. FRIENDLY INVESTMENT ENVIRONMENT Peru offers a favorable legal framework for foreign investment …
  • 10. PERU: A COUNTRY WITH MINING AND ENERGY POTENTIAL
  • 11. Peru promotes private investments to foster competitiveness and sustainable development by encouraging PPP in infrastructure projects as well as investments that make possible the country reaches its productive development PERU
  • 12. INVESTMENT OPPORTUNITIES IN A WIDE RANGE OF ACTIVITIES
  • 13. PERU: A MINING COUNTRY Source: U.S.Geological Survey-USGS – Report 2012 Metal South America rank World rank Gold 1 6 Silver 1 3 Zinc 1 3 Tin 1 3 Lead 1 4 Copper 2 2 Leader in mining production Metal World rank % World reserves Gold 8 4% Silver 1 22% Zinc 3 8% Tin 6 6% Lead 4 9% Copper 2 13% Great mining potential to be explored Peru is leader in mining production and is one of the countries with the largest reserves of silver, copper, zinc, lead, tin and gold in the world
  • 14. INVESTMENT WORLD DESTINATION IN MINING EXPLORATION 2011 Source: Metal Economics Group, 2012 In South America, Peru is the second most important destination for exploration after Chile
  • 15. MINING PROJECTS Copper Projects Gold Projects Iron Projects The ongoing mining projects totals an estimated investment for US$53 billion Source: Ministry of Energy and Mines, April 2012 Silver Projects
  • 16. PERU: A COUNTRY WITH ENERGY POTENTIAL Source: Ministry of Energy and Mines Energy resources Total potential (MW) Capacity used (MW) Hydroelectric 70,000 3,118 Wind power 22,000 142 Biomass 450 27,4 Geothermal 3,000 0 Peru has a huge potential for energy generation Peru’s energy matrix Energy production 2011 Energy potential Hydrocarbons Proven reserves Probable reserves Oil (million of barrels) 582 942 Natural gas (billion of cubic feet) 12,462 10,622 Oil and gas natural reserves (2010)
  • 17. Lots with exploitation contracts for oil operations 2010 Lots with exploration contracts for oil operations 2010 HYDROCARBONS OPERATIONS PACIFIC OCEAN BRAZIL Source: Ministry of Energy and Mines. Natural gas projectsOil projects Dynamic private investment in hydrocarbons projects
  • 18. SOME INTERNATIONAL COMPANIES THAT ALREADY INVEST IN PERU Canadá SILVER GOLD Canada USA South Africa COPPER Canada Mexico Switzerland USA China UK - Australia South Africa United Kingdom PHOSPHATE Brazil ZINC Canada Peru Brazil Source: PERUPETRO, Ministry of Energy and Mines. OIL AND NATURAL GAS
  • 20. PROJECTS PORTFOLIO: 2012-2013 SECTOR N° PROJECTS ESTIMATED INVESTMENT/TRANSACTION (US$ MILLION) % Roads 2 3,851 37% Railroad 1 3,000 29% Hydrocarbons 3 1,090 11% Telecommunication 3 718 7% Energy 5 585 6% Agriculture and irrigation 2 503 5% Airports 1 420 4% Ports and Navigability 2 139 1% Sanitation 1 36 0.3% Tourism 1 11 0.1% Culture 1 ---- ---- Capital Markets 2 ---- ---- Mining 2 ---- ---- Total 26 10,352 100% Private investment promotion process 2012 - 2013 26 projects
  • 21. PROJECTS PORTFOLIO: 2012-2013 o Roads o Railroads o Airports o Ports and navigability o Energy o Hydrocarbons o Telecommunication o Tourism o Agriculture and irrigation o Culture o Sanitation o Mining o Capital markets
  • 24. LIMA AND CALLAO ELECTRIC MASS TRANSPORTATION SYSTEM- LINE 2  Location: City of Lima.  Description: The project traverses 12 districts of Metropolitan Lima with an extension around 35 km from the initial point in Ate to the final point in Callao. It also comprises financing, design, construction, operation, provision of electromechanical equipment and rolling material, and maintenance of the line. • Estimated investment: US$ 3,000 million. • Concession term: To be defined • Type of concession: Comprehensive project bid.  Current status: The pre-investment studies are under elaboration and then the call for tender will be made.  Award date: IV Quarter 2013 TO BE CALLED ELECTRIC MASS TRANSPORTATION SYSTEM NETWORK Line 1 (South – North) From Villa El Salvador to San Juan de Lurigancho Line 2 (East – West) From Ate Vitarte to Callao Line 3 (South – North) From Santiago de Surco to Carabayllo Line 4 (East –West) From Ate Vitarte to Callao Line 5 (South – North) From Chorrillos to Miraflores
  • 25.  Location: Departments of Arequipa, Moquegua and Tacna. Description: Concession to build, operate and transfer sections: Dt. Quilca – Dt. Arequipa; Dt. Matarani – Dt. Moquegua; Dt. Ilo – Tacna – La Concordia. It will have an estimated length of 430 km and will be part of Panamericana Sur highway: Ica – border with Chile. • Estimated investment (VAT not included): US$ 50.8 million approximately. • Type of concession: Comprehensive project bid. Self-sustaining. • Concession term: 25 years.  Current status: The final version of the contract is published on Proinversión’s web site and waiting for opinion by MTC, MEF and OSITRAN.  Award date: III Quarter 2012. PANAMERICANA SUR HIGHWAY: ICA – BORDER WITH CHILE: SECTION DT. QUILCA – DT. AREQUIPA; DT. MATARANI – DT. MOQUEGUA; DT. ILO – TACNA – LA CONCORDIA LA CONCORDIA TACNA DV. ILO DV. MOQUEGUA DV. AREQUIPA DV. MATARANI DV. QUILCA AREQUIPA MOQUEGUA TACNA THE CALL FOR TENDER WAS MADE
  • 26. TO BE CALLED  Description: Concessions for building roads by sections established by the MTC to interconnect Peruvian towns and cities. Likewise, these roads will allow to lay pipelines along them for the installation of optical fiber. • Estimated investment (VAT included): US$3,800 million (approximately) • Concession term: To be defined. • Current status: Under evaluation by the Ministry of Transport and Communication –MTC, Ministry of Economy and Finance – MEF and Proinversion.  Award date: As from 2013 ROAD CONCESSIONS * * Road section projects established by the MTC part of Longitudinal de la Sierra and Longitudinal de la Selva, IIRSA Centro among others are included.
  • 27. NEW INTERNATIONAL AIRPORT OF CHINCHERO – CUSCO  Location: District of Chinchero, Province of Urubamba, Department of Cusco.  Description: Concession to design, build, finance, manage, operate, maintain and exploit the new international airport of Chinchero – Cusco. • Estimated investment (VAT included): US$ 420 million • Type of concession: Comprehensive Project Bid. • Concession term: 40 years  Current status: The scheme project is under evaluation.  Award date: As from 2013. THE CALL FOR TENDER WAS MADE
  • 28. GENERAL SAN MARTÍN PORT TERMINAL (PISCO)  Location: District of Paracas, province of Pisco, region of Ica, 220km from Callao port.  Description: Concession to design, build, finance, maintain and operate the General San Martín port terminal.  Estimated investment (VAT not included): US$ 93.20 million.  Type of concession: Comprehensive project bid. Self- sustained.  Concession term: 30 years.  Current status: Promotion plan and reformulated Tender Documents were approved.  Award date: I Quarter 2013 THE CALL FOR TENDER WAS MADE
  • 29. PACIFIC OCEAN UPGRADING AND MAINTENANCE OF NAVIGABILITY CONDITIONS OF RIVERS HUALLAGA, UCAYALI, MARAÑON AND AMAZONAS  Location: Rivers Huallaga, Ucayali, Marañón and Amazonas (Department of Loreto and Ucayali)  Description: Development of dredging works, and signposting in order to assure the navigability and therefore the traffic between the port terminals of Yurimaguas, Pucallpa and Iquitos.  Type of concession: Comprehensive project bid. Co-financed. • Estimated investment (VAT not included): US$ 45.8 million  Current Status: The final report of feasibility study is under evaluation.  Award date: II Quarter 2013. TO BE CALLED
  • 30. MASS USE OF NATURAL GAS NATIONWIDE TO BE CALLED PACIFIC OCEAN  Cities to be supplied : Trujillo, Chimbote, Huaraz, Arequipa, Moquegua, Ilo, Tacna, Cusco, Quillabamba, Juliaca, Puno, Ayacucho, Huancavelica, Abancay, Chiclayo, Lambayeque, Cajamarca, Huancayo, La Oroya, and Tarma. These cities will be grouped for concession purpose.  Description: The distribution system of natural gas includes:  Land or sea transport of liquid or compressed natural gas from the gas liquefaction plant Pampa Melchorita — 170km south of Lima— to cities to be supplied.  Re gasification in the borders of the above-mentioned cities.  Supply of natural gas to final users through gas pipelines. • Estimated investment (VAT not included): US$ 600 million. • Type of concession: Comprehensive project bid. Self- sustaining. • Concession term: 20 years. • Competition factor: Commitment of the largest number of users connected.  Current status: Technical studies are being carried out. The commitment of liquid gas supply between the State and Repsol is pending to be signed.  Award date: IV Quarter 2012 Brazil
  • 31.  Location: Southern zone of Lima  Description: Concession to design, finance, operate, and maintain the LPG transport system from the producer facilities (Pisco) to Lima province border. The project includes: • A pipe of 250 km approximately from Pisco to a terminal located between Lurín and Conchán. Initial transportation of 1,000 tonnes of LPG daily is estimated. • A storage and service terminal to be placed between Lurín and Conchán. • Pumping station, measurement equipment, valve, pig traps and communication equipments. • Estimated investment (VAT not included): US$ 90 million. • Type of concession: Comprehensive project bid. Self- sustaining. • Concession term: 20 years plus the construction period (28 months). • Competition factor: The lowest service cost.  Current status: The Tender Documents and the contract first version are published on Proinversión’s web site.  Award date: IV Quarter 2012 SUPPLY SYSTEM OF LPG FOR LIMA AND CALLAO THE CALL FOR TENDER WAS MADE
  • 32.  Location: Province of Cañete, Department of Lima.  Description: Concession to design, finance, build, operate and maintain a supply system that will allow to have a reserve of liquid natural gas produced at the gas liquefaction plant of Pampa Melchorita - 170 km south of Lima - and re gasify it for emergency periods. The reserve will be used, if necessary, mainly to supply thermal plants located in Chilca - 64 km south of Lima. • Estimated investment (VAT not included): US$ 400 million. • Concession term: 30 years. • Type of concession: Comprehensive project bid. Self- sustaining. • Competition factor: The lowest service cost.  Current status: The financing scheme and Tender Documents are to be defined .  Award date: IV Quarter 2012 LNG SUPPLY SYSTEM FOR DOMESTIC MARKET TO BE CALLED
  • 33. Pucallpa Puerto Maldonado STAND-BY RESERVE: 35-40 MW PUCALLPA PLANT AND 15 -18 MW PUERTO MALDONADO PLANT  Location : Departments of Ucayali and Madre de Dios.  Description: Concession of the power and energy supply to national grid as a Stand-by reserve to ensure supply in emergency periods. To guarantee supply, the design, financing, construction operation and maintenance of two new thermoelectric power stations to be located in Pucallpa (35 -40 MW) and Puerto Maldonado (15 - 18 MW) is expected. • Estimated investment (VAT not included): US$ 55 million. • Type of concession: Comprehensive project bid. Self- sustaining. • Concession term: 20 years plus the construction period (24 months). • Competition factor: The lowest remuneration per power offered.  Current status: There are three short-listed bidders: Cobra Instalaciones y Servicios S.A., Consorcio Energias del Perú, and Consorcio Servicios Integrales de Energía.  Award date: 05.10.2012 PACIFIC OCEAN THE CALL FOR TENDER WAS MADE
  • 34. 220 kW CARHUAQUERO - CAJAMARCA NORTE CACLIC - MOYOBAMBA TRANSMISSION LINE  Location: Departments of Lambayeque, Cajamarca, Amazonas and San Martin.  Description: Concession to design, finance, build, operate and maintain the line to increase the transmission capacity of electric power to the northern area of the country. It will have 400 km length and will supply power of 220 MVA through a single circuit. • Estimated investment (VAT not included): US$ 130 million. • Type of concession: Comprehensive project bid. Self- sustaining. • Concession term: 30 years plus the construction period (38 months). • Competition factor: The lowest cost of total service.  Current status: The Tender Documents and contract second draft are published on Proinversión’s web site.  Award date: III Quarter 2012 THE CALL FOR TENDER WAS MADE PACIFIC OCEAN BRAZIL
  • 35.  Location: Department of Cusco  Description: Concession to design, finance, build, operate and maintain the line to increase the transmission capacity of electric power to the southern area of the country, and reinforce the bidirectional connection between the subsystems of the area and allow the future connection of new charges and/or electric power plants. • Estimated investment (VAT not included): US$ 70 million. • Type of concession: Comprehensive project bid. Self - sustaining. • Concession term: 30 years plus the construction period (38 months). • Competition factor: The lowest cost of total service.  Current status: The Tender Documents are published on Proinversión’s web site.  Deadline to submit a short-listing request: May 25, 2012.  Award date: III Quarter 2012. 220 kW MACHU PICCHU – QUENCORO - ONOCORA - TINTAYA TRANSMISSION LINE THE CALL FOR TENDER WAS MADE PACIFIC OCEAN BRAZIL
  • 36. Moyobamba Iquitos 220 kW MOYOBAMBA – IQUITOS TRANSMISSION LINE  Location: Departments of Loreto and San Martín.  Description: Concession to design, finance, build, operate and maintain the line which length is 600 km approximately, to increase the electricity transmission capacity to the eastern zone of Peru (Departments of Loreto and San Martin) and interconnect the electricity systems in these departments with the National Grid. • Estimated Investment (VAT not included): US$ 330 million. • Type of concession: Comprehensive Project Bid. Self sustaining. • Concession term: 30 years plus the construction period (52 months). • Competition factor: The lowest service total cost.  Current Status: Tender Documents and the contract first version are published on Proinversión’s web site.  Deadline to submit a short-listing request: June 28, 2012.  Award date: IV Quarter 2012. THE CALL FOR TENDER WAS MADE PACIFIC OCEAN
  • 37. PACIFIC OCEAN BRAZIL ENERGYSUPPLY TOTHE CITYOF IQUITOS70MW Iquitos  Location: Department of Iquitos.  Description: Concession of the supply of power and energy to the national grid. In its first stage, it will run based on a regular supply that will end once the operation of Moyobamba – Iquitos transmission line begins. In the second stage, the supply will be as a stand-by reserve. The design, financing, construction, operation and maintenance of new thermoelectric power stations to be placed in Iquitos (70 MW) are considered. • Estimated investment (VAT not included): To be defined. • Type of concession: Comprehensive project bid. Self- sustaining. • Concession term: 20 years plus the construction period (24 months). • Competition factor: The lowest payment offered per power, once the plant operates as stand-by reserve.  Current status: The promotion plan has been approved and the Tender Documents and contract draft are under elaboration.  Award date: IV Quarter 2012. TO BE CALLED
  • 38. 899-915 MHZ AND 944 - 960 MHZ BAND IN LIMA AND CALLAO AND 902 - 915 MHZ AND 947 - 960 MHZ BAND FOR THE REST OF THE COUNTRY  Location: Nationwide.  Description: The project involves the selection of a telecommunication operator that will render mobile telecommunications services in 899-915 MHz and 944- 960 MHz Bands in the province of Lima and the constitutional province of Callao and 902-915 MHz and 947-960 MHz Bands for the rest of the country. These Bands of data and voice communication will increase the mobile telephony coverage in areas of low penetration and will foster competition in our country. • Estimated Investment ( VAT not included): US$ 297.7 million • Concession term: 20 years, renewable. • Type of concession: Special public bid. Self-sustaining. • Competition factor: The best economic offer.  Current status: The Tender Documents and the contract first version are published on Proinversión’s web site. There are two short-listing bidders.  Award date: III Quarter 2012. THE CALL FOR TENDER WAS MADE
  • 39. 1710-1770 MHZ AND 2110-2170 MHZ BAND NATIONWIDE  Location: Nationwide  Description: The project involves the selection of telecommunication operators that will be in charge of providing Public Telecommunication Services in Blocks A and B of the 1710- 1770 MHz and 2110-2170 MHz bands. The same bidder will not be awarded both bands blocks. The band technical specifications make possible to provide advanced wireless services (mobile broadband, voice communication, new applications, high-speed and high-capacity interactive and multimedia services ) • Estimated investment: To be defined. • Concession term: 20 years, renewable. • Type of concession: Special public bid - Self-sustaining. • Competition factor: Best economic offer.  Current status: The Tender documents are published on Proinversión’s web site.  Award date: IV Quarter 2012. THE CALL FOR TENDER WAS MADE
  • 40. NATIONAL OPTICAL FIBER BACKBONE NETWORK  Location: Nationwide. Over 10,000 km of optical fiber will be developed.  Description: The goal of the project is to globalize a broadband in Peru through the installation of optical fiber in the Capital of 195 Provinces of the country. The backbone network will be owned by the Peruvian State. It will be operated by a neutral operator, without discriminating the companies that require the service. Charges, quality and permanence will be controlled. The bidders may choose the best routes in order to improve their technical proposals (support network: pole, energy networks, etc) and economic proposals (the lowest co- financing).  Estimated investment (VAT included): US$ 420 million  Type of concession: Comprehensive project bid. Co-financed by MTC.  Competition factor: The lowest financial contribution requested to MTC.  Current status: Under formulation stage by the MTC: pre- investment studies.  Award date: IV Quarter 2013. TO BE CALLED Pacific Ocean
  • 41. CHAVIMOCHIC IRRIGATION PROJECT  Location: Department of La Libertad (Province of Virú, Trujillo and Ascope)  Description: The project involves the complementation of Chavimochic project in order to include 50,000 ha of new lands and improve the irrigation system of other 50,000 ha in the valley and inter valleys of Chao, Virú, Moche and Chicama. 1) The III Stage involves the construction of the following works: a) Reservoir of 370 cubic meter capacity in the Palo Redondo sector, b) Third line of Virú siphon; c) Moche-Chicama canal of 115 km length. d) Automation and improvement of the Main Canal 2) The operation and maintenance of the entire system (I, II and III stage) 3) Water supply services for energy and irrigation purposes, as well as people’s needs. The public investment already made in the first and second stage totaled US$ 950 million. • Estimated investment (VAT not included): US$ 498.8 million (III Stage works) • Type of concession: Comprehensive project bid. Co- financed.  Current status: Feasibility assessment to be concluded.  Award date: I Quarter 2013 TO BE CALLED
  • 42. MAJES-SIGUAS PROJECT LAND SALE OF 1000 Ha LOCATED IN MAJES I  Location: Department of Arequipa, province of Caylloma.  Description: Sale of 02 plots of untilled lands of 500 ha each, with water right of up to 13,500 m3/ha/year. The plots are located in the lower area of Pampa de Majes, sector with unbeatable climatic conditions, and near to Arequipa city and Matarani port. The Award grants to the respective awardees the right to exercise the Option to Purchase another contiguous lot of similar extension, on condition to obtain water from Majes irrigation surpluses (valid for up to 03 years) • Referential base price: US$ 4,000/ha • Estimated transaction (VAT not included): US$ 4.2 million. • Type of concession: Public Auction.  Award date: II Quarter 2013 POR CONVOCAR Arequipa Majes-Siguas project THE CALL FOR TENDER WAS MADE
  • 43. OPERATION AND MAINTENANCE, REHABILITATION AND IMPROVEMENT OF 16 SEDAPAL WWTP  Location: Districts of Lima where the sixteen (16) WWTP are located.  Description: The project involves the operation, maintenance, renovation and improvement of sixteen (16) SEDAPAL waste water treatment plants. The project involves: •Investments to improve the WWTP design capacity in compliance with the legislation in force. •At present, the sixteen WWTP treat a flow of 2.5 m3/s and it is expected to reach 4 m3/s by the fourth year of concession. • Estimated investment (VAT not included): US$ 35.6 million • Concession term: 20 years. • Type of concession: Comprehensive project bid. Self- sustaining. • Competition factor: The lowest price rate per cubic meter of treated waste water.  Award date: II Quarter 2013. POR CONVOCAR PRIVATE INITIATIVE ON PROCESS
  • 44. KUELAP CABLE CAR  Location: District of Tingo, province of Luya, department of Amazonas.  Description: Concession to design, finance, build, equip and operate the cable cars system for a fast and modern access route to Kuelap Fortress. The cable cars route will be 4,400 meters in order to overcome the distance of 965 meters between Tingo locality and Kuelap fortress. • Estimated investment (VAT included): US$ 10.6 million • Concession period: 20 – 30 years. • Type of concession: Comprehensive Project • Current status: The feasibility study of the project has been updated. Currently administrative papers of lands destined to stations and services are being arranged. The service concession scheme is also under evaluation.  Award date: II Quarter 2013. TO BE CALLED
  • 45.  Location: At the intersection of two of the most important avenues of Lima (Javier Prado and Aviacion avenues) in the district of San Borja, province and department of Lima. The NGT, the National Library of Peru and the National Museum will constitute “The Cultural Axis of Lima” .  Description: Private- Public Partnership that includes the management of the Theater, with participation of private investment in order to provide high quality performance for which it was designed, built and implemented. Main characteristics • The NGT has a capacity of 1500 persons and counts with 7 floors and 4 basements. • The stage measures 60 meters deep, one of the largest worldwide. • The orchestra pit will include mobile platform and high technology, not found in local theaters. • Adaptable state-of-the-art sound system for any type of shows. Mobile stages to perform up to 3 shows in the same day. Watch video of NGT (youtube) • Estimated O&M costs (20 years): US$ 95 million.  Current status: Tender Documents are under elaboration to make the call.  Award date: III Quarter 2012. MANAGEMENT OF THE NATIONAL GRAND THEATER - NGT Play Lobitos TO BE CALLED
  • 46. HUAYDAY AMBARA MINING PROSPECT  Location: District of Lucma, rural community of Lucma, province of Gran Chimú, department of La Libertad.  Description: The project involves the concession of a total area of 3,000 ha. The land presents a coal prospect with gold exploration potential in the influence area. The existing coal layer is classified as “clean anthracite” that can be used in steel and concrete production processes, and foundries for its high calorific value (over than 8.000 kcal). The potential for coal to be extracted is 2,3 billion of MT, which 1,23 million of MT (53%) are inferred resources. The estimated annual production is 66.000 MT and the mine life is at least of 20 years. • Estimated investment: To be defined. • Type of concession: Contract of transfer option.  Award date: IV Quarter 2012. TO BE CALLED LUCMA LA LIBERTAD
  • 47. CONCESSION OF REMAINING MICHIQUILLAY PROJECT  Location: District of Encañada – Community of Michiquillay, province of Cajamarca, department of Cajamarca, 47 km north east of Cajamarca; and 908 km from Lima.  Description: The project involves the transfer to the private sector of two remaining deposits of Michiquillay of 14, 927 ha. These deposits have limestone reserves, in three different geological formation, with over 15 billion MT. The limestone quality is good reaching over 97% of CaCO3 with low content of impurity mainly SiO2,Al2O3, Fe2O3, MgO and others. Due to its strategic location near to Yanacocha mine and other gold and copper projects, the prospect will also permit the exploration of these metals. • Estimated investment: To be defined • Type of concession: Contract of Transfer Option.  Award date: II Quarter 2013. TO BE CALLED CAJAMARCA
  • 48. SECTOR/ PROJECT CURRENT STATUS ESTIMATED INVESTMENT US$ MILLION ESTIMATED AWARD DATE 1.- Sale of shares held by FONAFE (Xtrata Las Bambas, Telefonica S.A., Clinica Internacional, Norsac, Telefonica del Peru S.A.A. and Xtrata Tintaya companies) To be called Auction III Quarter 2012 2. Sale of shares of Cayalti, Pomalca and Tuman Under process – Law 29288 Not applicable – Direct sale to workers May 2012 CAPITAL MARKETS PROJECTS PORTFOLIO