Policy Note on Attracting Private Investment to Infrastructure in Peru : Achievements, Challenges and a Way Forward

Over the last fifteen years, Peru has mainstreamed Public Private Partnerships (PPPs) as a tool to address its infrastructure gap with 177 contracts registered since the start of the program in early 2000s and has strengthened its PPP framework through successive legal and institutional changes. These changes made the process more complex, but capacities within the system were not strengthened in parallel. Issues have surfaced over the past five years relating to lengthy structuring and implementation periods and corruption. The PPP program in Peru is going through a credibility crisis due to its incapacity to deliver the efficiency and quality required to meet stakeholder's expectations. This Policy Note presents an overview of the international experience with PPPs for development of infrastructure; provides an assessment of the PPP system in Peru and recommendations for strengthening it in key areas; and proposes a strategy for implementing the recommendations