perú proinversión

October, 2009

INVESTMENT OPPORTUNITIES IN PERU

Why invest in Peru?

GDP growth: 9.8% (2008)• Sustainable growth since 2002 and annual

average growth of 4.75 % for 2009 –12• Exports tripled in 5 years.• Investment is increasing 20% average annually.• One of the lowest inflation in Latin America and

very stable exchange rate (free).

Vast natural resources: • Ores and hydrocarbons.• Available lands with proper climates, for

agricultural development.• 2nd country with larger forests area in Latin

America. • 2 500 Km. of coast and thousands of lakes

sustain the development of fishing and aquiculture.

Economy committed to the commercial integration process:

• Preferential access to CAN, MERCOSUR, USA and EU.

• 32 investment agreements.

Favorable climate for investment: • Country with investment grade.• Attractive framework for Foreign Direct

Investment, based on freedom and equality.• Peru is first in the region for government readiness

for private investment (WEF)• Peru stands first in the Latin America region in

protecting investors (WB)

Variables related to Investment in Peru(variations compared to the foregoing year)

Exports (% var. in US$) 40.9 35.3 36.9 17.5 13.1Capital goods imports (% var. in US$) 19.6 29.6 35.4 41.9 57.6Construction GDP (% var.) 4.7 8.4 14.7 16.6 16.5Tax collection (% var.) 13.6 14.3 27.8 15.3 11.0

2004 2005 2006 2007 2008GDP (%var) 5.1 6.8 7.7 8.9 9.8Private Investment (%var) 8.1 12.0 20.1 23.2 25.6Public Investment (%var) 5.7 12.2 13.0 19.7 41.9

CPI (%var) 3.5 1.5 1.1 3.9 6.7Jobs in companies with 10 or more workers (%var) 3.6 5.7 8.7 8.9 8.5

Sources: Central Reserve Bank of Peru, Ministry of Economy (MEF) and National Institute of Statistic and Information

Outstanding economic growth

Source: International Monetary Fund, Central Reserve Bank of Peru and Ministry of Economy.

WorldPeru

GDP

Grow

th(A

nual

gro

wth

%)

0%

2%

4%

6%

8%

10%

12%

2001 2002 2003 2004 2005 2006 2007 2008 2009* 2010* 2011*

5.0%4.0%

5.0%

6.8%7.7%

8.9%9.8%

Exports growth at significant rates

Accompanied by privateinvestment growth

Source: Central Reserve Bank of Peru and Ministry of Economy

8,668 8,356 8,394 9,22210,544

12,283

15,202

20,578

26,000

0

4,000

8,000

12,000

16,000

20,000

24,000

28,000

2000 2001 2002 2003 2004 2005 2006 2007 2008*

Total Amount in US$ Millions

8,668 8,356 8,394 9,22210,544

12,283

15,202

20,578

26,000

0

4,000

8,000

12,000

16,000

20,000

24,000

28,000

2000 2001 2002 2003 2004 2005 2006 2007 2008*

Total Amount in US$ Millions

6,955 7,026 7,7149,090

12,809

17,368

23,830

27,88231,529

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

2000 2001 200220032004 20052006 20072008

8,6688,3568,3959,22110,545

12,285

15,117

19,478

27,296

0

5,000

10,000

15,000

20,000

25,000

30,000

2000 2001 2002 2003 2004 2005 2006 2007 2008

Increase in the imports of capital goods

( Millions of US$)

Rise in the commercial exchange (Millions of US$)


-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

1998 2000 2002 2004 2006 2008*

OthersTransport EquipmentCapital Goods for the Industry

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

2000 2001 2002 2003 2004 2005 2006 20072008*

Total Imports (US$ Millions)

Total Exports (US$ Millions)

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

2000 2001 2002 2003 2004 2005 2006 2007 2008

Import. Totales (mill. US$)Export. Totales (mill. US$)

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

2000 2001 2002 2003 2004 2005 2006 2007 2008

OtrosEquipo de TransporteBienes de capital para la industria

Peru has improved its fiscal position

(% of GDP)

By increasing its central government tax revenues


6,524 6,710 6,840 7,877

9,123 10,795

13,891

16,764 18,491

-2,000 4,000 6,000 8,000

10,000 12,000 14,000 16,000 18,000 20,000

2000 2001 2002 2003 2004 2005 2006 2007 2008*

Central Government Tax Revenues (US$ Millions)

-3.3

-2.5 -2.3 -1.7

-1.0

-0.3

2.1

3.1

2.1

-4.0

-3.0

-2.0

-1.0

-

1.0

2.0

3.0

4.0

2000

2001

2002

2003

2004

2005

2006

2007

2008

6,524 6,710 6,840 7,877

9,123 10,795

13,891

16,764

19,905

-

5,000

10,000

15,000

20,000

25,000

2000 2001 2002 2003 2004 2005 2006 2007 2008

... in a framework of macroeconomic stability ...

2008 Average Exchange Rate: 2.9 Inflation Rate 2008: 5.8%

Source: Bloomberg Source: Central Reserve Bank of Peru, Chile, Mexico and Argentina,

70

80

90

100

110

120

130

140

2000 2001 2002 2003 2004 2005 2006 2007 2008

Exchange Rate in Latin America(Index January 2001 = 100)

PeruBrazilChileColombia

-5

0

5

10

15

20

25

30

2000 2001 2002 2003 2004 2005 2006 2007 2008

% A

nual

Cha

nge

Inflation in Latin America

PeruArgentinaBrazilChileMexico

With increasing Net InternationalReserves

Factors recognized by the market and allow the country risk reduction

Source: Central Reserve Bank of Peru

Net International Reserves (US$ Million)

8,180 8,613 9,598 10,19412,631

14,09717,275

27,689

31,196

-

5,000

10,000

15,000

20,000

25,000

30,000

35,000

2000 2001 2002 2003 2004 2005 2006 2007 2008

Aug

-09

Jun-

09A

pr-0

9M

ar-0

9D

ec-0

8O

ct-0

8S

ep-0

8Ju

l-08

May

-08

Mar

-08

Jan-

08N

ov-0

7S

ep-0

7Ju

l-07

May

-07

Feb-

07D

ec-0

6N

ov-0

6S

ep-0

6Ju

l-06

May

-06

Mar

-06

Jan-

06N

ov-0

5S

et-0

5100

200

300

400

500

600

700

800

900

EMBI Peru Latin America

Peru has reached the Investment Grade

S&P/Fitch Moody´s Characteristic

AAA Aaa Risk freeAA+ Aa1AA Aa2AA- Aa3A+ A1A A2A- A3

BBB+ Baa1BBB Baa2BBB- Baa3BB+ Ba1BB Ba2BB- Ba3B+ B1B B2B- B3

CCC+ Caa1CCC Caa2CCC- Caa3

D Ca Default

High uncertainty in the capacity of repayment

Highly vulnerable to default

Superior

High capacity of repayment

Moderate capacity of repayment

Some capacity of repayment

Source Bloomberg.

InvestmentGrade

Latin American Ranking

Source: Standard & Poor’s, Fitch Ratings and Moodiy’sUpdated: March 2009

Country S&P Fitch Moody´sChile A+ A A2Mexico BBB+ BBB+ Baa1Peru BBB- BBB- Ba1 Brazil BBB- BBB- Ba1Colombia BB+ BB+ Ba1Venezuela BB- B+ B2Argentina B- RD B3Bolivia B- B- B3Ecuador CCC+ RD Ca

Peru offers a favorable legal framework for foreign investment ...

Legal Framework: Constitutional provisions, “Law for the Promotion of Foreign Investment”, Legislative Decree N° 662, “Framework Law for Private Investment Growth”, Legislative Decree N° 757, “Law for the Promotion of Private Investment in Infrastructure and Public Service Works”, Approved by Supreme Decree N° 059-96-PCM

Non discriminatory treatment. Unrestrictive access to most economic sectors. No performance requirements. Free transfer of capital. Free competition. Guarantee for Private Property Freedom to purchase stocks from locals. Freedom to access internal and external credit. Freedom to pay royalties. Network of investments agreements and member of ICSID and MIGA Peru is adherent of the OECD Declaration on International Investment and

Multinational Enterprises.

Legal Stability Agreements

Guarantees recognized by the State:

INVESTORS Stability of the right to non discriminatory treatment. Stability of the Income tax rules applicable to dividends. Stability to use freely the most favorable exchange rate

available in the market. Stability of the free availability and remittance of foreign

currency, dividends and royalties regime.

RECEIVING COMPANY Stability of the right of recruitment regimes. Stability of the regimes for the promotion of exports. Stability of the Income Tax Regime

A Legal system that guarantees basic rules and statutes that will not change

Requirement: Minimum investment of US$ 5 MM in any economic sectors. US$ 10 MM for hydrocarbon and mining sectors.

Validity: 10 years. Concessions: Term according to the contract’s life (Max. 60 years).

With a steady tax regime, which main taxes are:

Tax Applicable Rate

INCOME

Corporate profits30%

Agriculture, agribusiness and aquaculture 15%

Dividends 4.10%Royalities 30%Interest rate on loans from abroad 4.99%

Value Added Tax (VAT) 19%

Financial Transactions Tax 0.06% throughout 2009

Temporal to net assets for more than S/. 1 000 000 0.40%

Special Regime of VAT Anticipated Recovery

BENEFITS Granting the return of the Value Added Tax during the pre-

productive stage of the project (minimum 2-year term). Applicable to all sectors of economic activity. For agricultural activity it is not necessary to meet a minimum

investment amount. For other activities the minimum investment amount is US$ 5 million.

The project can be divided by stages, phases, or similar levels.

and a reduced tariff structure and low tariff dispersion…

Source: Customs

TARIFF LEVELS ADVALOREM + SURCHARGES

TARIFF LINES

NUMBER PROPORTION (%)

0 3,952 53.79 2,616 35.5

17 792 10.8Total 7,360 100,0

SIMPLE AVERAGE APPLIED TARIFF RATE 5,0

STANDARD DEVIATION 7,7

Access to multiple markets

Ongoing agreements

Signed agreements

Negotiations underway

Planned negotiations

Russia

South Africa

EFTA

Singapore

European Union

Russia

Central America

United States

Canada

MERCOSUR ECA 58

AndeanCommunity

Mexico: ACE 8

A P E C

W T OKorea

Japan

CARICOM

Morocco

Thailand

ChinaChina

India

New Zealand

ECA PlusChile: ECA 38

Australia

* FTA

Peru has signed 32 International Investment Agreements, that underpin its liberalization policy.

Australia China Korea Malaysia Singapore* Thailand Japan

Argentina Bolivia Chile* Colombia Ecuador Paraguay Venezuela

Cuba El Salvador

Germany Belgium and Luxemburg Denmark Spain Finland France Nederland Italy Norway Portugal United Kingdom Check Republic Romania Sweden Switzerland

Canada* United States*

Investment Agreements

Source: World Economic Forum, Benchmarking National Attractiveness for Private Investment in LA Infrastructure. 2007

Position Country Points1 Peru 5.82 Colombia 5.63 Chile 5.54 Uruguay 4.85 El Salvador 4.66 Bolivia 4.57 Brazil 4.28 Dominic. Rep. 4.29 Mexico 4.1

10 Guatemala 4.011 Venezuela 3.212 Argentina 3.1

Peru is first in the region for government readiness for private investment in infrastructure

Recognition of a Favorable Investment climate

World Economic Forum

*Economc climate indexSource: Foundation of Getulio Vargas de Brasil

Position Country ICE*1 Peru 5.02 Brasil 4.63 Chile 4.34 Paraguay 3.95 México 3.76 Uruguay 3.37 Colombia 3.28 Ecuador 2.69 Bolivia 2.4

10 Argentina 2.011 Venezuela 1.6

Peru ranks first in the ranking of business climate in Latin America

Peru tops a global macroprudential indicator ranking

Position Country Points1 Peru 6.53 6 China 5.82 8 Switzerland 5.70 9 France 5.49

10 Netherlands 5.48 11 Mexico 5.43 17 Argentina 5.30 35 Brazil 4.78 39 Chile 4.66 41 Colombia 5.51 51 Venezuela 3.18

Source: World Economic Forum, The Financial Development Report 2009.

Getulio Vargas Foundation

INFRASTRUCTURE

Main Investment Opportunities by Sector

AgribusinessFisheries

& Aquaculture

Mining Textiles

Forestry

Tourism

Agribusiness

1st world exporter of asparagus, organic banana and organic coffee and 2nd of paprika.

Dry tropical weather and vertical sun radiation enhance crop productivity

• Highest world productivity in sugar cane.• Third highest world productivity in asparagus

and artichokes.

Specialized in high-value crops: fruits and vegetables.

Access to “seasonal windows” in the most important markets fetches higher prices for products.

5 million hectares of farm land. Optimum climate conditions in some areas allow crop scheduling.

Promotional regulatory framework including lower income tax rates

Source: PromPex, Adex Data Trade and Custom and FAO

-

400

800

1,200

1,600

2,000

2000 2001 2002 2003 2004 2005 2006 2007 2008

Agribusiness Exports(US$ Millions)

Non-Traditional

Traditional

United States29%

Germany10%

Spain9%Netherlands

8%

Belgium5%

Others39%

Agribusiness Exports by Markets, 2008

0

500

1,000

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Exports of main products(US$ Million)

Mango PaprikaAvocado GrapeArtichoke Asparagus

Fisheries& Aquaculture

Largest world exporter of fishmeal and fish oil.

Great hydro-biological wealth: 6 million MT of annual biomass for fishing (mainly anchovy).

Fast growing exports of products for direct human consumption : Frozen, canned and processed fish products.

Multiple species not yet entirely developed.

A long fishing coastline (3,080 km) and hundreds of lakes and lagoons ideally suited for continental and marine aquaculture.

Incentives for the aquaculture industry

Source: PromPex, Adex Data Trade and Custom

Scallops2%

King Prawn2%

Frozen fillets of

Hake1%

Frozen squid and

giant squiq5%

Fish oil16%

Fishmeal59%

Others15%

Fishing Exports, 2008

China35%

Germany8%

Japan7%

Spain6%

U.S.5%

Others39%

Exports by Markets, 20081,1311,1231,0561,026

1,381

1,6261,768

1,958

2,413

0

500

1,000

1,500

2,000

2,500

2000 2001 2002 2003 2004 2005 2006 2007 2008

Fishing Products Exports(US$ Millions)

Mining

Largest world producer of silver.

In Latin America: Leading producer of gold, zinc, tin and lead. Second producer of copper and molybdenum.

Practically all of the world’s multinational mining majors operate in Peru.

In 2008, mining exports exceeded $ 18.5 billion.

Announced investments over US$ 23 billion.

Only 10% of the country’s territory with mining potential has been explored.

High potential in non-metallic mining: borates, diatomite, bentonites, phosphoric rock and travertine, among others.

Excellent Competitive PositionMining Exports (US$ Millions)

Source: CEPAL, PromPeru, and MINEM

Mining Exports (In US$ Million)

Mineral 2007 2008 Var. %

Copper 7,241 7,663 5.8Gold 4,157 5,588 34.4Zinc 2,535 1,467 -42.1Lead 1,033 1,136 9.9Molybdenum 982 1,079 10.0Silver 537 595 10.7Tin 507 695 36.9Iron 286 385 34.8Others 51 48 -5.1Total 17,328 18,656 7.7

3,220 3,205 3,8094,690

7,124

9,790

14,735

17,32818,656

0

4,000

8,000

12,000

16,000

20,000

2000 2001 2002 2003 2004 2005 2006 2007 2008

Production Ranking 2008

Mineral Latin America WorldSilver 1 1Tellurium 1 3Zinc 1 3Tin 1 3Lead 1 4Gold 1 5Copper 2 3Bismuth 2 3Molybdenum 2 4

Textiles

Largest world producer of alpaca and vicuna fiber.

High quality of Peruvian Pima cotton.

Textile exports worth US$ 2,000 million.

Peru is garment supplier for renowned international brands.

Recognized quality as “full package” supplier of the best international brands of knitted cotton fabrics.

Source: Prompex and BCRP

Brands served by peruvian companiesAbercrombie & Fitch IzodAra Intersales JC PennyArmani Exchange Nassino DuttiCalvin Klein NauticaDonna Karan Inc. New BalanceDKNY LacosteDuck Head Appared Co. Kenneth ColeEddie Bauer Levy Strauss and Co.Guess OakleyInditex / Zara Palacio de HierroPolo Ralph Lauren RagmanPerry Ellis International ReebokThe Gymboree Corp. Vanity FairTommy Hilfiger Saks Inc.

Exports by country, 2008

Textile-Apparel Exports (In US$ Million)

0

500

1000

1500

2000

2500

2000 2001 2002 2003 2004 2005 2006 2007 2008

Textile fiberSpinningKnittingApparel

United States40%

Venezuela32%

Colombia3%

Chile3%

Italy2%

Others20%

Forestry

2nd largest natural forest area in Latin America (Amazon forest).

78.8 million hectares of natural forests and more than 10 million hectares of lands suitable for reforestation (plantations).

Great bio-diversity and high-commercial value timber:

Developing of tropical hardwoods in the rainforest and softwoods in the Andes.

Potential to export annually US$3 billion in timber and wood products.

Investment opportunities in lumber industrial compounds.

Source: ADEX Data Trade

Exports by Markets, 2008

Forestry Exports (US$ million)

Mexico33%

United Staes32%

China19%

Otros10%

Hong Kong2%

Italy2%Spain

2%

7887

114 109

136

169

215 213223

0

50

100

150

200

250

2000 2001 2002 2003 2004 2005 2006 2007 2008

Tourism

Machu Picchu among the New World Wonders.

An unsurpassed cultural destination featuring Inca and Pre-Inca civilizations’ archaeological sites.

Scenic diversity including natural attractions ranging from the Pacific Ocean beaches to the Amazon rainforests, through the snow-caps of the Andean Mountain Range.

A great diversity of ecosystems. Peru boasts 84 of the planet’s 114 life zones.

Vast flora and fauna, for its 1,730 bird species, 330 species of amphibians, 462 species of mammals, and 25,000 plant species (including 4,000 species of orchids).

Rich gastronomy. Lima has been acknowledged as the culinary capital of Latin America.

Tourist Arrivals, 2008Main origin regions

Source : MINCETUR

Tourist Arrivals(Thousands of persons)

Foreign exchange earnings generated by tourism (US$ million)

998 1,0701,277

1,4871,635

1,8121,949

0

500

1000

1500

2000

2500

2002 2003 2004 2005 2006 2007 2008

8371,023

1,2321,438

1,7752,007

2,395

0

500

1000

1500

2000

2500

3000

2002 2003 2004 2005 2006 2007 2008

South America

48%

North America

23%Europe

21%

Asia5%

Others2%

Central America

1%

Investment Opportunities

*Investment figures estimates September 2009

ProInversion’ s Investment Portfolio*

SECTOR ESTIMATED INVESTMENT (US$ MM)

Energy 960Hydrocarbons 1,300

Hydro-energy and Irrigation 1,309Telecommunication 372Ports 306Airports 237Sanitation 145Land Transport 60Trains 11Tourism 11Total 4,711

PROJECTESTIMATED

INVESTMENT (US$ MM)

AWARD

Zapallal-Trujillo T.L. 250 11.06.09Chilca – Marcona – Caraveli T.L (500 kV) 300 12.17.09Natural gas Power Thermal Plant of combined cycle of 140 MW in Quillabamba – Cuzco 120 To be defined

Tintaya – Socabaya T.L. (220 kv.) and associated sub-stations 50 II Q 2010

Strengthening of the North System with a second transmission circuit of 220 kv. between Talara and Piura. 22 II Q 2010

Pomacocha – Carhuamayo T.L. (220 kV) and associated sub-stations 18 To be defined

Cold reserve of generation ( 2 x200 MW, dual thermal plants in the north (trujillo ) and in the South (Ilo) 200 To be defined

Total Estimated Investment of projects in portfolio 960

Investment Opportunities in Energy

D E S C R I P T I O N

Trujillo

Zapallal

Zapallal-Trujillo T.L.

Transmission Line in 500 Kv

Description: To grant in concession the design, financing, construction, operation and maintenance of Zapallal – Trujillo T.L.

• Estimated Investment: US$ 250 million

• Concession period: 30 years plus the construction period (30 months).

• Competition factor: the lowest Service total cost (annual investment fort 30 years and rate of 12% plus the operation and maintenance cost)

Current Process Status:

The operators short listing concluded and approved the final version contract. There are five bidders in the concession process

• Award date: November 6, 2009


Chilca – Marcona – Caravelí Transmission Line:(500 kV)

S.E. Marcona

S.E. Caravelí

S.E. Chilca

Chilca-Marcona-Caravelí T.L

Description: To grant in conession the design, financing, cosntruction, operation and maintenance of Chilca Marcona – Caravelí T.L.

Estimated Investment: US$ 300 Million

• Concession period: 30 years plus the construction period (30 months)

• Competition Factor: the lowest Service total cost (annual investment fort 30 years and rate of 12% plus the operation and maintenance cost)

Current Status:

Time line to submit a qualification request November 24, 2009

Award date: December 17, 2009

Cold reserve of generation (2 x 200 MW, dual thermal plants)


Location : North (Trujillo) and South (Ilo). Description: Dual thermal plants (diesel and natural gas)

of 200 MW each, in order to increase the thermal reserve in the National Interconnected System, these will be used in a emergency generation. These plants will have power guarantees in order to cover the investment, the operator is not allow to subscribe contracts of energy sales and when operation starts up, the system will pay them their variable expenses.

• Estimated Investment: US$ 200 million.• Concession period: 15 - 20 years.• Competition factor: Lower payment

Current process status: Legal framework adequacy is pending

Award date: 2010

PROJECTESTIMATED

INVESTMENT(US$ MILLION)

AWARD

Chimbote gas pipeline (natural gas) 1300 To be defined

Natural Gas Distribution System in the regions of Ayacucho, Junin and Ancash. To be defined To be defined

Natural Gas Distribution System for the cities of Quillabamba, Cuzco, Puno, Arequipa, Moquegua and Tacna.

To be defined To be defined

Total Estimated Investment of the defined projects 1,300

Investment Opportunities in Hydrocarbons

Location: Central highlands /North middle coast.

Description: To design, finance, build and operate a natural gas transportation system to supply the cities of Ayacucho, Huancayo, La Oroya, Tarma y Chimbote.

• Estimated Investment: US$1.300 million Concession term: 30 years plus the construction period ( 40 – 48 months)

• Competition factor: Lowest gas transportation service cost.

Modality: Comprehensive project bid.

Current process status: The availability of the Natural Gas by the producer (Camisea) is pending.

Award date: 2010.

Gas pipeline to Chimbote (Natural Gas)


PROJECTESTIMATED

INVESTMENT(US$ MM)

CONCESSION AWARD

MajesSiguas

II

Water consolidation 344 December, 2009

Hydropower Component 700 To be defined

Land Auction in the sector of Pampa Baja Public Auction To be defined

Land Auction in Pampas de Siguas

Public Auction To be defined

Chavimochic Project(1st component – 3rd Stage) 265(*) To be defined

Total estimated investment (US$ MM) 1,309

(*) Project is currently under evaluation by Ministry of Economy and Finance

Investment Opportunities in Irrigation and Hydro-energy

Majes-Siguas II Project: Water Consolidation

*Amount to be decided with the Ministry of Economy and Finance.


Location: Arequipa region, Caylloma province Description: This component includes building, operating

and maintaining the Angostura dam and the Angostura-Colca derivation tunnel, in addition to water carrying and distribution works to provide irrigation water for 38,500 hectares in Pampas de Siguas. Estimated investment: US$ 344 million plus VAT Concession Term: 20 years (including 4 years of

construction and 16 years for operation) Competition factor: Lowest unit remuneration per

cubic meter of irrigation water and less co-financing amount required by State.

Type of concession: Co-financing. The State will grant a co – financing amount of US$ 140M approximately, plus an annual guarantee of US$ 28.2 M during 16 years.

Modality: BOT concession. Current process status: Five bidders have already qualified

and are able to present their offers. Award Date: December, 2009


Chavimochic Project (1st component – 3rd Stage)

Location: La Libertad Region Description: Development of the first component of the third

stage of Chavimochic project to assure the watering for permanents farminigs in the valley areas and inter valleys of Caho, Virú and Moche. The concessionaire must build a reservoir (Palo Redondo) which will allow to storage the water of Santa River in order to supply the main existing channel so this can provide a regular watering in 60, 000 has.

The regional government of La Libertad will carry out complementary works: such as the upgrading of the water inlet to assure the storage of Santa River water and the construction of a second siphon in Viru River for transfering the water through Viru river´s and up to Moche River valley.

Estimated investment: US$ 265 million. Concession type: Co- financing. Current process status: Is currently under evaluation by the

SNIP – MEF for its feasibility. Award Date: To be defined

Investment Opportunities in Telecommunications

PROJECTESTIMATED

INVESTMENT(US$ MM)

ESTIMATEDFINANCING(US$ MM)

AWARD

Rural broadband Juliaca – Pto Maldonado 6 8.5 11.05.2009

Broadband for VRAE development 8.3 10.8 12.02.2009

Broadband Camisea – Lurín

Integration of telecommunication services Buenos Aires – Canchaque 7.2 9 12.23.2009

C 1900 MHz Band 350 -- To be defined

Total estimated investment (US$ MM) 372.4

Juliaca - Puerto Maldonado Rural Broadband


Geographical location: Puno and Madre de Dios region (Southeast).

Public services: Public telephony for subscribers and public telephones, carrier services, and added value (Internet access) for 370 towns. Thorough the use of optical fiber installed through the electric transmission network.

Estimated investment: US$ 6 million Maximum estimated financing: US$ 8.5 million Modality: Public bid. Type of concession: Co-financing. The project will have a non-

reimbursable financing provided by FITEL. Competition factor: the lowest subsidy requested to the State. Submission date of Envelopes N°2 and N°3 and opening of

Envelope N°2: Tuesday, October 27, 2009 Award Date: November 5, 2009

VRAE BroadbandCamisea – Lurín Broadband

Scope: Lima, Ayacucho, Apurímac, Ica, Junín, Cusco and Huancavelica regions.

Utilities: Public telephony for subscribers and pay phones, carrier services, value added (internet connectivity) for 776 towns; it is foresees that the services implementation will be done through the optical fiber capacity installed along the Camisea gas pipeline and in combination with the land satellite and wireless links in order to provide the service fort he selected towns in the project area.

Estimated investment: US$ 8.28 million. Estimated financing: US$ 10.83 million. Modality: Public bid. Type of concession: co – financing. The project will have a non-

reimbursable financing provided by FITEL Competition factor: Lowest government subsidy requested. Current process status: The call for bidders have been made.

The Tender documents are published in ProInversion’s web site. The deadline to submit Envelope N°1 (short listing). Will be announced by Circular Letter.

Award date: To be defined


Implementation of Telecommunication Integrated Services Buenos Aires - Canchaque

Scope: Region of Piura. Public Services: Public telephony in 536 towns, subscribers

telephony in 201 towns, and internet access in 249 towns. The towns benefited total 683, a population of 342 inhabitants located in Piura, Sullana, Ayabaca and Huancabamba provinces will be benefited.

Estimated Investment: US$ 7.2 million Estimated Financing: US$ 9 million Process modality: Public Bid Concession type: Co-financing. The project will have a non-

reimbursable financing provided by FITEL. Competition factor: Lowest financing requested to FITEL Current status: The Call for tenders have been made. The Tender

documents are published on Proinversion’s web site. The submission date of Envelope N°1 is schedule up to 15 calendar days previous to reception of Envelopes N° 2 and N° 3.

Reception date of Technical and economic proposal: December 14th, 2009

Award date: December 23th, 2009



25 MHz in the 1900 MHz C band

Geographical location: Nationwide. Description: the concession of Public telecommunication

services. Referential investment amount: US$ 350 million Term of concession: 20 years, renewable. Competition factor: Highest economic proposal value

• Economic proposal: comprises the concession fee equal or over the base price.

• Base price: US$ 14.8 million• Concession fee payment: Payment of the total

amount offered upon contract signing. Type of process: Special public bid. Type of concession: Onerous title, comprised of payment of

concession fee. Current Process Status: The short listing stage was reopening

until November 30, 2009 Award Date : To be defined, according Circular Letter.

PROJECTESTIMATED

INVESTMENT(US$ MM, no V.A.T.

included)CONCESSION AWARD

San Martin (Pisco) P.T 107.8 12.18.09

Pucallpa P.T 14.7 IV Q 2009

Salaverry P.T. 124.1 To be defined

Yurimaguas P.T 46.0 To be defined

Iquitos P.T 13.2 To be defined

Ilo P.T To be defined To be defined

Total estimated investment (US$ MM) 306

Investment Opportunities in Ports

General San Martín – Pisco Port Terminal

D E S C R I P T I O N Location: Ica Region – province of Pisco. Description: The project comprises the design,

construction, financing, maintenance and exploitation of General San Martín –Pisco Port Terminal.

Estimated investment US$ 107.8 million* (taxes are not included) The investment amount included the minimum initial investment (multifunctional mooring berth: US$ 60.8 million) and the investments subject to the demand (specialized mooring in bulks: US$10.1 million to 3 million Ton/ year and dock of containers: US$36.1 million to 100 thousand TEUs/year*), per stages. • Concession period: 30 years.

Modality : Comprehensive Project bid. Current status: The second contract project was sent.

The delivery of the third contract project was extended. Meeting with the interested bidders is currently been developed. Envelope N°1 (short– listing documents) will be accepted up to November 13, 2009.

Award: December 18, 2009 If the established demand level of 100 thousand TEU/year is reached in the first 20 years of concession.


Pucallpa River Port

Location: Banks of Ucayali river in Callería district, Coronel Portillo province, Ucayali region.

Description: The project comprises the design, construction, financing, maintenance and exploitation of Pucallpa Port Terminal. The Dredging and maintenance of waterways works will be done by MTC. Estimated minimum investment (VAT not included): US$ 14.07 MM* .Concession term: 15 years but this can be extended up to 30 years.

Modality Co-financed concession. Two payment commitments by the grantor: i) Payment per Works, amount allocated to cover requested investments; and ii) Annual maintenance and operation payments (PAMO) regarding the latter, the payment by MTC will correspond to the difference between annual collection of the concessionaire for regulated services that yield less than the corresponding annual maintenance and operation payment (PAMO)

Current Status: The second contract version of the concession process was sent. The process is temporarily suspended waiting for possible amendments to referential project and the concession area by the APN.

Award Date : To be defined.* Taxes are not included

Salaverry Port Terminal

Location: La Libertad – Trujillo province. Description: the project comprises the design,

construction, maintenance and exploitation of the port terminal. Estimated investment: US$ 124.1 million, taxes

are not included* Modality: Comprehensive project Bid. Self-

sustaining. Current status: To be called

The referential project was approved and sent by APN.

The Port Development National Plan must be modified (APN –MTC)

Based on the PNDP amendments the Promotion plan and the Tender Documents will be modified, to make the call for tenders.

Award Date: To be defined.


* According to the referential project sent by APN

Yurimaguas Port Terminal

Location: left bank of Huallaga river, locality of Yurimaguas , 20 kilometres downstream from the current port.

Description: The concession comprises the design, construction, partial financing, maintenance and exploitation of the new Yurimaguas P.T. located in the locality Nueva Reforma. the construction of a highway of 9.4 km long approximately is required to have access and this one will be have a connection with Tarapoto-Yurimaguas highway, also the construction of a bridge over Paranapura river of approximately 100 m long is required.Dredging and maintenance of waterways works by MTC.

• Estimated Investment: US$ 46.5 MM, taxes are not included• Concession period: 30 years maximum

Modality: Co- financed Current status: To be called

The declaration of viability of the Feasibility Study by the OPI and MTC is pending.

Award date: To be defined



Iquitos Port Terminal

Location: Itaya river, 2 km upstream of its merging with the Amazon river, in Iquitos city, Maynas province in Loreto department.

Description: The project comprises the modernization, partial financing, maintenance and operation of the Iquitos river port.

Dredging and maintenance of waterways works by MTC.

Estimated investment (inc. VAT): US$ 13.2 MM* taxes are not included

Concession term: to be defined, not over 30 years. Modality: Co-financing Award date: to be defined

*Amount according to the Referential Project, approved in August by the OPI of the MTC and sent by the APN at the same time.

PROJECTESTIMATED

INVESTMENT(US$ MM)

CONCESSION AWARD

Regional Airports-Second Group:1. Tacna2. Juliaca3. Arequipa4. Puerto Maldonado5. Ayacucho6. Andahuaylas

237 November 30, 2009


Investment Opportunities in Airports

Regional Airports-Second Group


APURIMAC

AREQUIPA

AYACUCHO PUNO

MADRE DE DIOS

TACNA

Description: The project consist of establishing a Public – Private Partnership, and comprises the designing, construction, financing, operation, maintenance and the development of regional airports located in the south of Peru (Tacna, Juliaca, Arequipa, Puerto Maldonado, Ayacucho and Andahuaylas). Estimated Investment: US$ 237 million Concession Term: 25 years. Term may be

extended at Grantor's judgment. Competition factor: Lowest co-financing amount

requested for operation and maintenance (PAMO), and lowest amount for mandatory investments, executed the first three years. (PPO)

Modality: Government co-financed concession. Current process status: the deadline to submit a

qualification request is October 2, 2009 Award date: November 30, 2009.

PROJECTESTIMATED

INVESTMENT(US$ MM)

CONCESSION AWARD

La Chira Wastewater Treatment Plant and Submarine outfall 145 To be defined


Investment Opportunities in Sanitation

Geographic location: Near La Punta La Chira, south of Lima, district of Chorrillos.

Description: Design, financing, construction, operation and maintenance of a waste water treatment plant.

Capacity: 6.3 m3/seg in average. Maximum per

hour: 11.3 m3/seg.• Technology: Can be accomplish through different

technologies and/or process treatments and the effluent final disposal, by means of a submarine emissary infrastructure.

• Approximate investment: US$ 145 million (value added tax are included)

Modality: Concession. Term: 25 years. Current process status: Process is currently in Tender


La Chira Wastewater Treatment Plant and Submarine outfall

PROJECTESTIMATED

INVESTMENT(US$ MM)

CONCESSION AWARD

Huancayo – Huancavelica Train 11 IV Q 2009

The Special project Lima Callao Mass Transport Electric System in section of Line 1 To be defined March 2010

Investment Opportunities in Railways


Huancayo – Hucancavelica Train

Location : Junín and Huancavelica region. Description: project comprises the operation,

administration and maintenance of its infrastructure, upgrading and acquisition of rolling material and the supervision of the development of the service( passengers and cargo). Estimated Investment: US$ 11 million Concession Term: 15 years. Competition factor: the lowest economic proposal

fulfill by the grantor. 1) Investments (PPI) and, ii) operation and maintenance (PAMO – annual). Additionally, the highest collection in passenger transportation.

Modality: Comprehensive project bid. Type of concession: Co-finance Current process status: The final draft contract is under

elaboration Award date : 4th quarter of 2009.


Line 1, Villa El Salvador – Av. Grau Extension, Lima and Callao Massive Transportation Electric System Special Project Concession

Location: Lima Description: This project crosses 08 districts of

Metropolitan Lima. Its route starts in Villa El Salvador and ends in Av. Grau. It comprises the construction of the main Maintenance Workshop for the new and existing trains in the second level of the Workshop Yard, provision of rolling material, operation and maintenance. • Estimated investment: To be defined• Concession term: 30 years• Competition factor: To be defined

Modality: Comprehensive Project Bidding. Current Status: On September 2, 2009 the Call for Tenders

was made. Award date: 1st quarter 2010

PROJECTESTIMATED

INVESTMENT(US$ MM)

CONCESSION AWARD

IIRSA Amazon Axis – Center Branch (Section 2) 60 To be defined

Investment Opportunities in Land Transportation

IIRSA Amazon Hub – Center Branch


(*) Investment to be defined

AXIS IIRSA CENTER, total extension of 871 km approximately and cross the regions of Lima, Junín, Pasco, Huánuco and Ucayali. In order to facilitate the concession, it has been divided in 3 sections.

Section 1 Ramiro Prialé - Puente Ricardo PalmaSection 2 Pte. Ricardo Palma - La Oroya

La Oroya– Huancayo, La Oroya – Dv. Cerro de Pasco

Section 3 Dv. Cerro de Pasco – Pucallpa

INITIALLY, SECTION 2 WILL BE GRANTED IN CONCESSION Description: the section has an approximately 400 km long, the

upgrading and rehabilitation works will be executed, operation and maintenance works will be done during the concession period. Details of process execution are to be defined

Estimated Investment: US$ 60MM (*) approximately, operation and maintenance expenses are not included.

Concession period : No less than 25 years. Competition factor: To be defined. Modality: self- sustaining . Current status: The process is expected to be call during October 2009. Award date: To be defined

PROJECTESTIMATED

INVESTMENT (US$ MM)

CONCESSION AWARD

San Martín Former Militar Barracks Public Auction IV Q 2009

San Lorenzo Island To be defined I Q 2010

Lobitos Camp Public Auction I Q 2010

Cable car system to access Kuelap 10.6 I Q 2010

Total estimated investment (US$ MM) 10.6

Investment Opportunities in Tourism and Real Estate

San Martín Former Military Barracks

Location: Miraflores district, Lima province and department.

Description: Private investment in a 68,400.00 m2, property located in one of Lima’s most attractive areas, close to the sea and near the city’s best hotels and restaurants and within easy access to the Costa Verde sea resort.

Modality: to be defined. Proposed use: convention centers, business

center,hotels, shopping centers ( all high standar and international level).

Current Status: In order to have the urbanistic parameters and the property relocation we are in coordination with the Municipality of Lima.

Award Date: 4to quarter 2009.


Av del Ejercito

Paul HarrisCa

lle Po

lar

San Lorenzo Island


Location: San Lorenzo Island

Description: The transaction is comprised of :

Award of 400 Ha in San Lorenzo Island: Aim to real estate, commercial and tourism development of the area.

Bridge concession: Designing, financing, constructing, equipping and operating a bridge which connects Callao’s West coast to San Lorenzo Island

Estimated investment: to be defined Concession Term: to be defined Award date: I Quarter, 2010

(*) Investment to be defined

Lobitos Beach


Location: Region of Piura, Province of Talara, District of Lobitos.

Description: Tourist project development in a lot 63.56 has, with 1800mts approximately of land facing the sea.

Tourist complex composed by a group of hotels and vacation rental homes. All those would be served by a local mall. It is considered to keep the wharf of handcraft fishing and its service unit.

Investment amount: To be defined

Bid: 1st quarter of 2009.

Kuelap Cable Car

D E S C R I P T I O N Location : Amazonas

Project Description : The design, financing, construction, equipment and cable car system operation. Its objective is to provide an easy, fast and modern access to Kuelap. The cable cars would cover a distance of 3,800 m., covering the difference of 965m height between the localities of Tingo and Fortaleza.

Concession Term: 20 Years

Estimated Investment: US$ 10 .6 MM

Award Date : 1st quarter of 2010.

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