CAF Supports Peru with Works on 9,150 km of Road in the Provinces and Funds to Counter the Effects of the Pandemic

The CAF—Development Bank of Latin America—board of directors approved two operations totaling USD 723 million for the Republic of Peru to help the government in countering the effects of the pandemic, improving the transport conditions of the subnational road infrastructure and reducing logistical costs in order to boost the country's competitiveness and create jobs in the provinces.

"As an unconditional partner in the development of our countries, we support Peru with fast-disbursing contingent resources to strengthen the authorities' action plans aiming to benefit the population,” said CAF executive president Luis Carranza Ugarte. “By providing efficient transport and logistics infrastructure and services, we promote the generation of local employment and the connection of regional production centers to national collection points and logistics corridors, thus reducing the costs incurred by different production chains.”

The contingent support loan aimed to address the effects of the COVID-19 pandemic in Peru, which totals up to USD 350 million, will contribute not only to the timely delivery of public resources to help mitigate the impacts of the health crisis, but will also promote economic recovery and expand the financial portfolio with the goal of diversifying sources of financing that ensure the government’s responsiveness to adverse events.

For the first stage of the Road Infrastructure Program for Regional Competitiveness (PROREGION 1) USD 373.4 million were approved, aimed at improving and preserving as many as 4,948 km distributed across 18 road corridors. The interventions planned include improving conditions through basic solutions and the conservation of priority road corridors by service levels. The project also encompasses complementary capacity-building activities, the development of definitive studies in stretches that require more robust technical solutions, follow-up and impact monitoring activities, as well as those associated with program management.

PROREGION proposes a phased intervention, at the level of basic solutions, for about 15,000 km of the subnational unpaved road network, which represents 54 percent of Peru’s entire network, thus reducing the road network indicator in the provinces to be paved. This will improve the provision of transport and logistics infrastructure and services in the production area - national logistics corridor link, in regions with export potential and in border areas.