Boosting Private Investment: New Legislative Decree in Peru

By Espinosa Bellido Abogados

The Executive Branch of Peru issued Legislative Decree N° 1691, which aims to regulate the promotion of private investment through Public-Private Partnerships (PPPs), while also establishing measures to enhance project management and the processes for promoting such investments.

PPPs represent an innovative modality for private sector participation in public infrastructure and services. Through long-term contracts, the state and private investors share risks and resources, enabling projects that might otherwise be unfeasible. This approach guarantees optimal service levels for users and is vital for addressing the country's infrastructure needs.

With the implementation of this new decree, the government seeks to create a more favorable environment for private and public-private investments. 

Promoting private investment is essential for the growth of Peru's Gross Domestic Product (GDP). These initiatives are expected to not only reduce the existing public infrastructure gap but also improve the provision of public services, thereby enhancing the quality of life for Peruvian citizens.

A key aspect of this strategy is the role of the Private Investment Promotion Agency (Proinversión). This agency operates under the Ministry of Economy and Finance and has technical and administrative autonomy, allowing it to act as an active subject in promoting investment. Its responsibilities include overseeing promotion processes and managing institutional resources to finance its activities.

Proinversión is also tasked with supervising aspects related to the valuation and expropriation of properties, a crucial element for infrastructure development. The Executive Director of Proinversión issues the resolution approving the valuation and payment, ensuring that the process is conducted transparently and efficiently.