Any economy that wants to develop competitive advantages must invest in infrastructure. This requires a significant fiscal effort and an unviable rate of public investment, especially in developing countries.

For this reason, many States incorporate the private sector in the financing, construction, maintenance and management of public infrastructure through PPPs. These are carried out in various modalities, including self-financing and co-financed.

In the first decade of the century, the country managed to position itself as a Latin American leader in awarding and executing PPP projects. The Peruvian financial structuring scheme was awarded worldwide and even adapted by countries such as Colombia, Honduras and Paraguay.

During these years, more than 120 pure PPPs were registered in Peru with investment commitments that exceed 65 billion dollars. These PPPs constituted “the source” of financing for large infrastructure as well as generating and accompanying economic growth.

Why were PPPs stopped?

It is unfortunate that over the years there is a decrease in the number of PPP project awards. Between 2014 and 2017, only about 11 concessions were awarded, which is alarming, especially if one takes into account that in recent years the rate is only two APPs.