Economic Situation 18 Sep 2014

WORKS FOR TAXES MADE IN PERU The power of taxes in mobilizing public investment and boosting the private sectors reputation

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The speech of President Ollanta Humala, during the celebration of the Peruvian Independence and on purpose of the balance of his third year in office, brought good news to turn public investment in the Health and Education sectors, which is now supported by the use of innovative and efficient mechanisms. To do this, he announced that it has allocated a total of S /. 2,500 million (US $ 900 million) for the next two years for both sectors.

These mechanisms are particularly revolutionary and unique in Latin America due to the new financial scheme proposed: private company finances today a work of public infrastructure, its maintenance and equipment (if it is required) and the sub-national government (regional government or municipality and even now public universities) pays the following year, once completed and delivered the work.

This report allows us to know what mechanisms does the private sector have for the participation in public investment projects, how private financing runs, what are the responsibilities of each actor in the projects, what are the benefits to the company and the population as well as the keys to success of these initiatives, among others.

Rosa Ana Balcázar, Chairman of Public Affairs in LLORENTE & CUENCA Peru

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