Infrastructure investments face obstacles in Peru

Subject

Public-private partnerships.

Significance

Amid attempts to secure new investment from Canada and the United States, the government is wrestling with political difficulties surrounding the future of public-private partnerships (PPPs). These have been magnified in recent months by the bad publicity arising from the Odebrecht bribery scandals. Establishing a politically acceptable balance between attracting investors and ensuring the transparency of public works contracts is proving increasingly important.

Impacts

• The problem of corruption in sub-national government will cloud the operations of PPPs.
• There will be a need for stronger and more independent regulation of PPP projects.
• The localised reach of the Works for Taxes programme will limit its scope in dealing with wider objectives.