📋 Tender Overview
At the end of the first quarter of 2024, the investment executed by the large-scale mining and infrastructure projects of the prioritized portfolio of the EESI-MEF, increased by 27.8% compared to the same period of 2023, confirming a rebound in private investment. The trend would continue in the present and future quarters, given the progress in the recent obtaining of permits and environmental certifications by important projects such as Line 2 of the Lima and Callao Metro, Tantahuatay and Pucamarca.
The mining and infrastructure projects that are part of the Prioritized List of Projects (LPP)[1] monitored by the Specialized Investment Monitoring Team (EESI) of the Ministry of Economy and Finance (MEF), registered an increase of 27.8% in their investment execution, compared to the same period in 2023. The aforementioned portfolio of projects is made up of large-scale investments from different economic sectors, mainly private and public-private investment. It is estimated that in 2024 the total execution will reach US$ 3,306 million.
The increase is mainly due to the higher execution of the mining projects in the portfolio, which registered a joint investment amount of US$ 240 million, thus exceeding the amount executed during the first quarter of 2023 by US$ 140 million. Likewise, investments in infrastructure projects reached US$ 339 million, due to the progress of emblematic projects such as the Expansion of the Jorge Chávez International Airport (US$ 134 million), Line 2 of the Lima and Callao Metro (US$ 91 million) and the Chancay Multipurpose Port Terminal (US$ 54 million), which presented increases of 31%, 47% and 103%. respectively, with respect to the January-March 2023 period.
The greatest execution of investments has been possible as the respective projects obtained permits and certifications from different sectors of the National Government, which ensure that their development is sustainable and in accordance with the applicable regulatory framework. With the support of the Ministry of Economy and Finance in the articulation and monitoring, in the first quarter of this year 21 procedures were unblocked, a figure that exceeds by 61.5% the 13 that concluded in the same period last year.
Likewise, in recent weeks, procedures have been concluded that enable the continuation of important investment projects, which leads to foreseeing future investment executions and also to improving the business climate, by providing predictability for those investments that comply with the country's regulations. Among the main decisions it is possible to mention:
Mining Projects
For this sector, SENACE recently approved environmental certifications for two projects that together add up to an investment of US$ 170 million, which will make it possible to extend their respective useful lives; this is the case of the expansion of the Tantahuatay and Pucamarca mining units:
Tantahuatay: At the end of May, SENACE approved the Third Modification of the Detailed Environmental Impact Study (MEIA-d) of the Tantahuatay Mining Unit (gold and silver production, in the Cajamarca region), previously obtaining the favorable technical opinion of the National Water Authority (ANA) and other entities such as MIDAGRI and MINCUL, in a procedure that had the participation of citizens. With this pronouncement, the environmental viability of an investment of US$ 127 million (construction capex) has been certified, which will allow the production level to be maintained at 72,000 TMD for an additional eight years, as a result of the expansion of the "Tantahuatay 02" and "Ciénaga Norte" pits, in addition to the optimization of other mining components and the exploitation of new quarries. The aforementioned investment will be executed in the coming months, once its owner obtains the respective operating permits from the MINEM.
Pucamarca: In the first week of June, SENACE approved the Third MEIA-d of the Pucamarca Mining Unit (gold production, in the Tacna region), previously obtaining the favorable technical opinion of the ANA, the MIDAGRI and the Ministry of Foreign Affairs. This milestone certifies the environmental viability of the modification of the mining plan that will extend the operation schedule by two years and, subsequently, allow it to continue operations until 2028. After obtaining the aforementioned certification, the holder must process additional permits with entities such as the MINEM; by 2024 this mining unit would execute US$ 21 million of a total investment of US$ 43 million.
It is also important to note that a few weeks ago the National Court of Water Controversies of the ANA, concluded the review of the challenges filed against the granting of the license to use water for operations of the Quellaveco project, issued in August 2022 by the Caplina-Ocoña Water Administrative Authority (decentralized body of the ANA). After a procedure conducted autonomously by the Court, said collegiate has maintained within the framework of its competences that the aforementioned license complies with the regulations to which this type of permit must be subject. The Quellaveco project executed a private investment of US$ 5,548 million between 2018 and 2023, which made it possible to generate thousands of new jobs, mainly for the population of the south of the country, an investment that currently generates public revenues that will contribute to closing the gaps.
Road Infrastructure Projects
The Line 2 project of the Lima and Callao Metro has completed last May the obtaining of all the permits required to start works on the "El Olivar" and "Quilca" Stations of its Branch 4, with which the concessionaire of the project will be able to start civil works this June, executing an investment of US$ 48 million.
