CAF leads debate on the future of Public-Private Partnerships in Peru

As part of its commitment to the sustainable development of infrastructure in the region, CAF - Development Bank of Latin America and the Caribbean, through CAF Asset Management Corp. (CAF-AM), organized the event "Public-Private Partnerships: Where we are going. Opportunities and challenges in the financing of PPP projects". This space for dialogue, developed in collaboration with the Ministry of Economy and Finance (MEF) and ProInversión, allowed analyzing the impact and opportunities offered by Public-Private Partnerships (PPP) to strengthen investment and economic growth in the country.

The meeting was attended by the Minister of Economy and Finance, José Salardi, who, a few days after taking office, highlighted the importance of promoting a structural reform that allows accelerating the execution of strategic projects. "The development of infrastructure is fundamental to improve the country's competitiveness. To this end, it is necessary to optimize processes, generate confidence in investors and guarantee an adequate framework for the participation of the private sector," he said.

The event also marked the beginning of the new executive director of ProInversion, Luis del Carpio, who presented the entity's strategic guidelines to strengthen the attraction of private capital. In this sense, he pointed out that the goal is to mobilize USD16 billion in the coming years, with the aim of closing infrastructure gaps and boosting the country's competitiveness.

CAF's representative in Peru, Santiago Rojas, reaffirmed the institution's commitment to financing strategic projects and strengthening the PPP model in the region. "CAF promotes innovative financing mechanisms to boost investment in infrastructure and consolidate strategic alliances between the public and private sectors. We will continue to support initiatives that generate sustainable development and improve the quality of life of citizens," he said.

Challenges and perspectives of PPPs in Peru

As part of the event, high-level panels were held where experts analyzed the financial and management challenges of PPP projects in the country.

The first panel, "Opportunities and Challenges in PPP Project Financing", was moderated by Verónica Zambrano, President of Ositran, and brought together leading specialists from the financial sector, including Camila Quintero (CAF-AM Ashmore Colombia), Carlos López Rabadán (BBVA), Jaime Pease (SMBC Group), Fabián Ibarburu (CAF-AM Uruguay) and Poldy Osorio (IFC). During the debate, the main challenges in structuring PPP projects and the need for efficient financial planning were addressed.

The panelists agreed that the success of these projects depends on factors such as the proper alignment of interests between investors, public entities and concessionaires.

As well as the optimization offinancial schemes to ensure long-term sustainability. In addition to the strengthening of supervision mechanisms to ensure efficiency in the execution of PPPs.

The second panel entitled "Perspectives and challenges of investment recovery mechanisms in PPP projects" was moderated by Alberto Ñecco, CEO of CAF-AM, with the participation of Luis del Carpio, director of Proinversión; Juan Carlos de la Concha (Marnhos Perú), Jorge Velarde (Cofide), Úrsula Velarde (Steer) and Juan José Cárdenas (Damma Legal). In this space, the progress and challenges in the implementation of this model in the country were discussed and success stories and lessons learned were highlighted, as well as the need to improve the management of permits and speed up execution times.

The specialists stressed the importance of consolidating a regulatory framework that allows for greater stability in PPP contracts and fosters investor confidence. They also identified opportunities to strengthen collaboration between the public and private sectors in order to ensure the long-term viability of projects.

CAF, through CAF-AM, reaffirms its commitment to strengthening the PPP model in Peru and the region, promoting innovative solutions to mobilize resources and ensure the success of strategic projects. The combination of efficient financing, public-private partnerships and active management will be key to consolidate a modern and sustainable infrastructure for the benefit of the entire population.