why invest in peru?€¦ · source: forbes (december2013) countries with the best investment...

WHY INVEST IN PERU?

April

1. Internationally acknowledged macroeconomic soundness

WHY INVEST IN PERU?

2. Friendly investment environment

3. Open trade and market access policy

4. Attractive sectors to Invest

MACROECONOMIC SOUNDNESS

1. MACROECONOMIC SOUNDNESS

Peruvian economy rise rapidly in the last decade …

Real GDP 2003-2015* (var. %)

Source: Central Reserve Bank of Peru and IMF* Estimated figures of BCRP (inflation report as of December 2013) and IMF

GDP , 2003-2015*(US$ Billion)

4.0

5.0

6.8

7.7

8.9

9.8

0.9

8.8

6.9

6.3

5.0

6.06.5

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014*2015*

61.469.8

79.492.4

107.4

127.1 127.4

154.0

176.7

199.7206.7

220.6

242.3

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014* 2015*

… and continue leading regional growth allowing the GDP per capita exceeds the

global average by 2020 ...

Real GDP – Forecasts for Latin America 2014-2016(Anual Average Variation %)

1.MACROECONOMIC SOUNDNESS

4,000

6,000

8,000

10,000

12,000

14,000

16,000

1980 1984 1988 1992 1996 2000 2004 2008 2012 2016 2020

World

Latin America& TheCaribbean

Peru

GDP per capita, PPP($ International constant prices of 2005)

2.1

2.8

3.0

3.4

4.4

4.5

5.8

Venezuela

Argentina

Brazil

Mexico

Colombia

Chile

Peru

Source: IMF and MEF

ESTABILIDAD MACROECONÓMICA

Source: BCRP* BCRP Estimated figures (inflation report, December 2013)

1. MACROECONOMIC STABILITY1. MACROECONOMIC SOUNDNESS

Economic growth has been driven by rising private investment….

Private Investment 2003-2015* (variation %)

Private Investment 2002-2014* (US$ Billion)

9.22 10.55 12.28

15.12

19.47

27.32

22.41

29.50

34.51

42.65 44.36

48.17

52.30

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014*

2015*

6.38.1

12.0

20.1

23.325.9

-15.1

22.1

11.413.5

3.96.3 6.6

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014*

2015*

27.325.7

24.2 23.7

19.2

Perú Chile México Colombia Brasil


…… today represents almost 22% of GDP ….

Total investment 2003-2015* (% of GDP)

Source: Central Reserve Bank of Peru* Estimated figures of BCRP (inflation report as of December 2013) Source: International Monetary Fund and Central Reserve Bank

Total investment – LATAM 2013(% of GDP)

Peru Chile Mexico Colombia Brazil

15.0 15.1 15.5 16.418.2

21.5

17.719.2 19.6

21.4 21.5 21.7 21.7

2.8 2.8 2.93.1

3.4

4.3

5.2

5.9 4.5

5.2 5.86.5 6.9

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014*

2015*

Inversión Privada

Inversión Pública

Private Investment

Public Investment

ESTABILIDAD MACROECONÓMICA1. MACROECONOMIC STABILITY

Investment announcement has increased in IV quarter of 2013

Announcement of Private Investment projects(US$ million )

Source: BCRP. Inflation report, December 2013

Set.13 Dic.13 Differences

Mining 13,880 14,110 230

Hidrocarbons 3,797 4,036 239

Electricity 2,813 3,293 480

Industry 1,671 1,991 320

Infrastructure 1,133 1,133 0

Other sectors 3,431 3,952 521

Total 26,725 28,515 1,790



… Peru is an attractive market for foreign investment, which Register a 10,000 millions in 2013

Source: BCRP * Estimated figures BCRP ( inflation report , December 2013)

Foreign direct investment flow 2003 – 2015*(US$ Billion)

Foreign direct investment – LATAM 2013 /1

(% GDP)

Source: IMF and CEPAL1/ preliminary figures .

1.3 1.6

2.63.5

5.5

6.96.4

8.5 8.1

12.3

10.0 10.09.4

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014*

2015*

4.9%

3.7%3.4%

2.8%2.6%

1.9%

Perú Colombia Chile Brasil LAC México


…Furthermore, the domestic demand is strengthening ….

Source: Central Reserve Bank of Peru and MEFEstimated figures BCRP (inflation report, December 2013)

Real domestic demand 2003 – 2015*(real annual Var. % )

Imports of vehicles for private use(US$ million)

Imports of domestic assets(US$ million)

10 veces

180

1,804

2000 2012 /E

4 veces

393

1,628

2003 2012 /E

Times

Times

Source: SUNAT and MEFEstimated figures1/ Includes imports of refrigerators, television, washing machine and y electrical appliance

3.7 3.8

5.8

10.3

11.812.3

-2.8

13.1

7.1 7.2

5.7 6.0 6.1

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014*

2015*

1,760

5,300

2000 2012

…generating an increase in consumer markets


Source: MEF and ACCEPE/ expected figure

Mall’s Sales(Million of US$)

3 veces

Malls(Number per region)

3 times

6

14

34

41

13

21

27

2000 2005 2012 2013 E/

Lima

Otras regionesOther regions

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014* 2015*

Exportaciones 9,091 12,809 17,368 23,830 28,094 31,019 26,962 35,565 46,268 46,228 41,829 43,114 48,427

Importaciones 8,205 9,805 12,082 14,844 19,591 28,449 21,011 28,815 36,967 41,113 42,191 43,074 46,727

Balanza Comercial 886 3,004 5,286 8,986 8,503 2,569 5,951 6,749 9,301 5,115 -362 40 1,700

9,091

12,809

17,368

23,830

28,09431,019

26,962

35,565

46,268 46,228

41,82943,114

48,427

(1,000)

3,000

7,000

11,000

15,000

19,000

23,000

27,000

31,000

35,000

39,000

43,000

47,000

ESTABILIDAD MACROECONÓMICA

Source: BCRP* Estimated figures BCRP ( inflation report, December 2013)

1. MACROECONOMIC STABILITY1. MACROECONOMIC SOUNDNESS

Complemented with a dynamic international trade…

Balance of Trade 2002-2015* (US$ million)

Exports

ImportsTrade Balance

0

5,000

10,000

15,000

20,000

25,000

30,000

2003 2008 2013

Otros

Plomo

Petróleo

Oro

Cobre

Others

Lead

Oil

Gold

Copper

ESTABILIDAD MACROECONÓMICA1. MACROECONOMIC STABILITY

… which is being diversifying, both in products and markets


Source: Central Bank of Reserve of Peru

Traditional Exports(commodities)(US$ million)

6 veces

Non-Traditional Exports(US$ million)

Main trading partners

2002

2013

U.S.A.26%

Rest of Europe21%

LAC15%

Euro Zone14%

Asia11%

Others13%

5 times

5 times LAC19%

USA.18%

China17%

Euro Zone14%

Asia13%

Rest of Europe10%

Others9%

-

2,000

4,000

6,000

8,000

10,000

12,000

2003 2008 2013

OtrosQuímicosTextilesAgro

Others

Chemical

Textile

Agro


In 2050, Peru will be one of the fastest growing economies ranking

among the 30 main economies in the world…

Fastest growing economies Economy size – World ranking

2010

Ranking Country

1 USA

2 Japan

3 China

4 Germany

5 United kingdom

6 France

7 Italy

8 India

9 Brazil

10 Canada

44 Chile

46 Peru

2050

Ranking Country

1 China

2 USA

3 India

4 Japan

5 Germany

6 United kingdom

7 Brazil

8 Mexico

9 France

10 Canada

26 Peru

32 Chile

2050

Ranking Country

1 China

2 India

3 Philippines

4 Egypt

5 Malaysia

6 Peru

Source: HSBC (January 2012)

-5

0

5

10

15

20

25

30

35

40

45

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013*

Argentina

Brasil

Chile

Colombia

México

Perú

Argentina

Brazil

Chile

Colombia

Mexico

Peru

... all, in a frame of macroeconomic stability, Peru registers the lowest inflationrate in the region…

CPI in Latin America: 2002 - 2013 (Annual Variation %)


Source: Central Bank of Reserve of Peru,IMF * Preliminary figures IMF

CPI – Latin America 2002- 2012(Annual Average Variation %)

11.6

6.54.8 4.4

3.2 2.8

Argentina Brasil Colombia México Chile Perú

CPI – Latin America 2013 *(Annual Average Variation %)

2.4 2.6 2.9 3.3

5.9

10.8

Colombia Chile Perú México Brasil ArgentinaColombia Chile Peru Mexico Brazil Argentina

… has maintained stable exchange rates and a level of country risk under theregion average

Exchange Rate in Latin America 2001-2012(Index, Base year 2005 = 100)

JP Morgan EMBI+ (Basic points)


Source: Central Banck of Reserve of Peru, and CEPAL

60

80

100

120

140

160

E-02

S-02

M-03

E-04

S-04

M-05

E-06

S-06

M-07

E-08

S-08

M-09

E-10

S-10

M-11

E-12

S-12

Perú

Brasil

Chile

Colombia

México

100

200

300

400

500

600

700

800

900

M-13

O-12

J-12

F-12

O-11

J-11

F-11

S-10

M-10

J-10

S-09

A-09

D-08

A-08

A-08

N-07

J-07

F-07

EMBI+ Perú

Latinoamérica

Brazil

Peru maintains a healthy level of debt…

Public Debt– Peru 2003-2015*(% of GDP)


Source: Central Bank of Reserve of Peru (inflation report 2013)

Public Debt– Latin America 2013(% of GDP)

Source: FMI. and BCRP

46.9

42.6

39.3

32.3

28.525.9 26.0

23.521.4

19.7 19.217.2 16.4

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014*

2015*

12.9

19.2

32.3

44.047.8

53.4

68.3

Chile Perú Colombia México Argentina Venezuela BrasilChile Peru Colombia Mexico Argentina Venezuela Brazil


Source: Central Reserve Bank of Peru*Up to March 2014

Net International Reserves ( US$ Billion)

...and has accumulated international reserves for a third of the GDP

November

2003 2008 2013

NIR ( US$ million) 10,303 30,970 66,279

Posición de Cambio del BCRP (US$ million) 4,367 21,017 42,151

NIR / GDP (%) 1/ 17.1 24.4 32.0

NIR /GDP Deuda externa de corto plazo (N°times) 2/

2.2 3.3 9.0

1/ Acumulado al trimestre inmediatamente anterior.

2/ Incluye el saldo de deuda de corto plazo y la amortización de los próximos cuatro trimestres

Source: BCRP. Inflation report December 2013

International reserves indicators

9.6 10.212.6 14.1

17.3

27.731.2

33.1

44.1

48.8

64.065.7 65.0

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014*

Source: Standard & Poor`s, Fitch Ratings and Moody´s. Updated as of October 23, 2013


The responsible economic policy granted Peru the investment grade and investors’ confidence.

Investment gradeLatin America benchmarking

Country S&P Fitch Moody´s

Chile AA- A+ Aa3

Mexico BBB+ BBB+ Baa1

Peru BBB+ BBB+ Baa2

Brazil BBB BBB Baa2

Colombia BBB BBB- Baa3

Bolivia BB- BB- Ba3

Venezuela BB- B+ B2

Argentina B- CC B3

Ecuador B B- Caa1

Best countries for doing businessLatin America comparison

Source: Forbes (December 2013)

Countries with the best investment climateSouth America comparison

4.8

5.0

5.2

5.4

5.7

6.0

6.4

Brasil

Ecuador

Chile

Bolivia

Colombia

Perú

Paraguay

PositiónLAC

PositiónMundo

Country

1 22 Chile2 52 Uruguay3 53 Peru4 55 Costa Rica5 61 Panama6 63 Mexico7 66 Colombia

Paraguay

Peru

Colombia

Bolivia

Chile

Ecuador

Brazil

FRIENDLY INVESTMENTENVIRONMENT

� Non discriminatory treatment: Foreign investors receive the same treatment as local investors.

� Unrestrictive access to most economic sectors *.

� 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 participates in the Investment Committee of the Organisation for Economic Co-operation and Development (OECD) – It promotes the implementation of the Guidelines for Multinational Enterprises.

*Investments that require authorization: Located within 50 km in the frontier line and those destined to arms, ammunitions and explosive. Likewise, a principal local partnerfor investments in maritime cabotage as well as in air transport is required.

2. FRIENDLY INVESTMENT ENVIRONMENT

Peru offers a favorable legal framework for foreign investment:

INVESTORS

� Stability of the regulations regarding nondiscriminatory treatment.

� Stability of the income tax regimeapplicable to dividends.

� Stability to use freely the most favorableexchange rate available in the market.

� Stability of the free availability andremittance of foreign currency, dividendsand royalties regime.

Requirement: Minimum investment of US$ 5 million in any economic sectors. US$ 10 million for hydrocarbon and mining sectors.Validity: 10 years. Concessions: Term according to the contracts life (Max. 60 years).

RECEIVING COMPANY

� Stability of the recruitment regimes.

� Stability of the regimes for the promotionof exports.

� Stability of the Income Tax Regime


Special Regimes: Legal Stability Agreements

Regime whereby the Peruvian Government guarantees:

� Granting the return of the Value Added Tax during the pre-productive stage of the

project (minimum 2-year term).

� Applicable to all economic sectors

� 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 into stages, phases or similar.

� Granting the return of the Value Added Tax during the pre-productive stage of the

project (minimum 2-year term).

� Applicable to all economic sectors

� 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 into stages, phases or similar.

Special Regime: VAT Anticipated Recovery.

Regime whereby the Peruvian Government grants the following benefits:


A steady tax regime:

Tax Applicable Rate

INCOME

Corporate profits

30.0%

Agriculture and agribusiness 15%

Dividends 4.1%

Royalties 30.0%

Interest rate on loans from

abroad4.9%

Value Added Tax (VAT) 18%

Financial Transactions Tax 0.005%

Temporary to net assets, applicable to the excess of S/. 1 000 000

0.4%


Peru ranks second in the region in the improvement of business regulations.

.

Doing Business 2014


Continuous effort to facilitate the establishment and operation of business

Position Country

1 Chile

2 Peru

3 Colombia

4 Uruguay

5 Paraguay

116

162

88

126

161

115

43

135

34

42

181

Argentina

Uruguay

Bolivia

Brasil

Surinam

GuyanaVenezuela

Colombia

Perú

Chile

Ecuador

109

Paraguay

� Peru has signed and currently in force Agreements for the Promotion and Reciprocal Protection of Investment andTrade Agreements of further scope that includes investment chapters that underpin our liberalization policy.

� Australia

� China 1

� Korea 1

� Malaysia

� Singapore 1

� Thailand

� Japan

� Argentina

� Bolivia

� Chile 1

� Colombia

� Ecuador

� Paraguay

� Venezuela

� Cuba

� El Salvador

� Costa Rica 1

� Panama 1

� European Union 2

� European Association of

free Trade (Iceland,

Liechtenstein, Switzerland

and Norway)

� Canada 1

� United States1

� Mexico 1

(1) Trade agreements

(2) Trade Agreement. Besides , Peru has Investment bilateral agreements with Germany, Belgium, Luxemburg, Denmark, Spain, Finland, France,

Holland, Italy, Portugal, United Kingdom, Check Republic, Sweden and Switzerland.

Investment Agreements

� It has also signed 7 agreements to avoid double taxation with Andean Community, Brazil, Chile, Canada, Korea, Mexico and Switzerland.


OPEN TRADE AND MARKET ACCESS POLICY

16.3

3.2

12.3

1.10.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

0

2

4

6

8

10

12

14

16

18

1993Dic.

1994Dic.

1995Dic.

1996Dic.

1997Dic.

1998Dic.

1999Dic.

2000Dic.

2001Dic.

2002Dic.

2003Dic.

2004Dic.

2005Dic.

2006Dic.

2007Dic.

2008Dic.

2009Dic.

2010Dic.

2011Dic.

2012Dic.

2013Feb.

Dispersión ArancelariaArancel NominalArancel Efectivo 1_/

3. OPEN TRADE AND MARKET ACCESS

POLICY

An open trade policy sustained over time

Evolution of nominal and effective tariff; and tari ff dispersion 1993 – 2013

Notes: 1) Affective Tariff= (Amount of total revenue Avaloren CIF / Total Amount of CIF Imports)*100.2)Tariff Dispersion= Standard Deviation

Reduced tariff structure with low tariff dispersion

2/ Sub-tariff of Chapter 98 Goods with special treatment of duties tariff

Source: SUNAT – MEF


LEVELS OF ADVALOREM

TARIFF LINES 2/

NUMBER PROPORTION (%)

0 4,224 55.9%

6% 2,538 33.6%

11% 792 10.5%

Total 7,554 100 %

EFFECTIVE AVERAGE TARIFF % 3.2

EFFECTIVE TARIFF % 1.1

STANDARD DEVIATION % 3.8

Agreements in force

OPEN TRADE AND MARKET ACCESS POLICY

Working to become a globalized economy,with preferential access to the world’s largest markets

Agreements under negotiations

These countries stand for enlarged market of over 4

billion people with a joint GDP over

US$ 56 billion

96% of Peruvian exports

INVESTMENTOPPORTUNITIES INATTRACTIVE SECTORS

AGRIBUSINESS SECTOR

�Natural greenhouse.

�High agricultural yields: Sugarcane (2nd),Asparagus, Olives (3rd), Artichokes (4th), Grapes(6th) and Avocado (11th).

�Seasonal windows in major markets.

�The 100,000 ha of land currently devoted toagricultural exports are expected to double as aresult of large agricultural irrigation and expansionexisting projects.

�More than US$ 4.000 billion in exports of freshand processed products to more than 145countries.

�Organic and Natural Products with high exportpotential.

Agricultural Exports (FOB US$ Million)

Agricultural exports according to Target Market – 2013*

AGRIBUSINESS SECTOR

Source: ADEX Data Trade., BCRP.

Traditional

Non traditional

Total

FISHING SECTOR

� Extensive fishing coastline (3,080 km) and"bodies of water" which offer favorableconditions for the development of marine andcontinental aquaculture.

� First worldwide exporter of fish oil.

� Distribution of Peruvian fish products to over100 countries.

� Tendency to product diversification.

Fishery Exports(FOB US$ Million)

FISHING SECTOR

Fishing exports according to Target Market – Jan – Oct 2013

Source: BCRP, Adex Data Trade

Indirect human consumption

Direct human consumption

Total

INDUSTRY

� Manufacturing is the sector with highestweight (15.98%) in the formation of PeruvianGDP

� Generates 11% of employment andrepresents more than 70% of non traditionalexports with higher added value

� One of the emblematic sub sectors is textileand clothing which has a long tradition ofprofessionalism of workforce which has allowedthe development o fan efficient comprehensiveproductive process

� During 2014 the recovery of the economies ofthe main countries of destination of our exportsand the greater demand of the internal market ofintermediate goods foreseen a greater growth inthis sector.

Spurce: PRODUCE

* Estimated figures as of December 2012

INDUSTRY

Manufacturing Production(Var. %)

Knitting Production(TM)

Beverages production(Thousands of tonnes)

Source: INEI

* Estmated figures as of November 2013

MINING SECTOR

� Polymetallic country, second in world copperreserves, third in zinc, and first in silver.

� In 2012, 15% of the land is subject of miningconcessions, and only 1.09% of the land is takenfor mining exploration and exploitation.

� In 2012: Third producer of copper, silver, tin andzinc worldwide. First producer of gold, zinc, tinand lead. And 2nd of copper, silver andmolybdenum in Latin America.

� As of November 2013 metal exports totaled US$21,079 million, representing 55.27% of totalnational exports.

� Peru is one of the few countries in the world withnon-metallic mineral deposits, includingdiatomite, bentonite, limestone and phosphate.

Mining Exports (Jan – Nov 2013)

Source: MINEM,

MINING SECTOR

Investment portfolio by main metal 2012

Copper

Gold

Lead

Zinc

Iron

Tin

Silver

Molybdenum

other

Copper

Gold

Iron

Phosphate

Silver

Zinc

Silver

Potassium

Polymetallic

ENERGY SECTOR

� Great energy potential: The wide availability of waterresources and natural gas has enabled to meet thegrowing electricity demand in the country.

� In 2012, 87.2% of the population had access toelectricity.

� The 2012 energy matrix, comes mostly from renewableenergy (about 56% of energy production ishydroelectric, 43.5% is based on natural gas and 0.5%with other renewable sources).

� Resources to be discovered and exploited: There areother renewable energy sources to be explored such assolar, wind, biomass and geothermal sources.

� Power projects portfolio to be invested is over US$6.000 billion until 2016.

� The main economic groups of power generation are:Endesa, GDF Suez, IC Power and Duke Energy.

ENERGY SECTOR

Source: SNMPE and MINEM

Estimated figures

Source: COES

Energy production per type of energy resource, Jan – Oct 2013

Maximum energy of energy power(MWh) 2088-2017*

PETROCHEMICAL SECTOR

�In 2013, natural gas production totaled 430,559 millioncubic feet, driven by growing demand from power plants,increased consumption of vehicular (VNG), domestic andcommercial natural gas.

�Peru is the only sustainable source of natural gas in theSouth American Pacific area.

�Peru has oil fields that have not been explored (29.97million ha), making it a potential petrochemical hub.

�The petrochemical industry integrates with the productionof natural gas and other liquid hydrocarbons, giving it asignificant added value.

�Among the products produced by the Final PetrochemicalIndustry are nitrogen fertilizers, plastics and detergents,synthetic fibers and synthetic rubbers.

�Investment opportunities for US$ 16.750 million inNitratos del Perú, CF industries and Braskem petrochemicalprojects.

PETROCHEMICAL SECTOR

Controlled Natural Gas Production, 2003-2013

Source: Peru - Petro

� Important cultural destination for archaeological sitesof the Inca and pre-Inca cultures.Machu Picchu wasvoted one of the New 7 Wonders of the World.

� Diversity of natural settings.

� Destination for bird and orchid watchers.

� Lima is considered the gastronomic capital of LatinAmerica.

� Important investment by internationally renownedhotel chains.

� Increased connectivity of the Peruvian air marketwith increased weekly frequencies in internationalflights to allow more connections and destinations,with more and better travel options.

� Investment Opportunities in the 8 priority destinations: Northern Beaches, Amazon River, Amazonas, Kuelap, Moche Route, Lima, Nazca, Paracas, Colca Valley and Puno-Lake Titicaca.

� Due to its tourist attraction and services of quality Peru will be the venue of important sports events and international forum such as: APEC 2016 and the 2019 Pan American games.

TOURISM SECTOR

Source: MINCETUR

Tourist arrivals(Thousands of people)

Tourist Arrivals by region of origin -2013

TOURISM SECTOR

� The average growth of the sector in the last twoyears was 15.2 % corresponding to 2012 and9.2% in 2013 %.

� The significant growth of the economy is driving

more investments in infrastructure as well as

housing.

� The housing shortage affects 20% of households.

� There are several housing finance programs,subject to economic conditions and the level of

household income, “Techo Propio”, “Fondo Mi

Vivienda” and Commercial Banking.

� Mortgage Loans have doubled over the past

seven years (2006-2013), reaching US$ 10.600

million in December 2013

REAL ESTATE

REAL ESTATE

National Housing Deficit(2010)

Source: Censo INEI 2007

Deficit quantitative,

389,74521%

Deficit qualitative1,470,947

79%

Mortgage Loans provided by the Financial System 2006-2013 1/

(US$ Million)

Sopurce: SBS1/ comrpises loans in Solea and Dollars2 Figures as of November 2013

SERVICES - OUTSOURCING

� The lowest labor costs per operator in Latin America(US$ 270), a factor that accounts for 60% of operatingcosts in contact centers.

� Presently, contact centers represent 23,063 positionsgenerating 36,479 direct jobs. In 2013 exports grew by10%.

� Exports of services from contact centers, data processing,computer application and programs and the likes are notsubject to VAT.

� Availability of technology requirements and low realestate costs.

� The implementation of the Data Protection Act (passed in2011) will strengthen the position of companies in thesector and will open new opportunities for the generationof larger business concerns.

Total Turnover of Contact Centers(US$ million)

SERVICES - OUTSOURCING

Source: Promperu as of October 2012

Contact Centers Demand 2012

TRANSPORT INFRASTRUCTURE

� Peru has prioritized the development of transportinfrastructure (road, rail, port and airport) toincrease competitiveness and set up a logistics hubthat integrates Latin America, with the Asia – Pacificeconomic region.

� With this in mind, the commitments for investmentin concessions of the sector, around US$ 7.4 billionas of September 2013, generating its modernization,with a reduction in logistics costs and driving,through the FTA, Peru's integration with globalmarkets on a scale of greater competitiveness.

� The developed infrastructure will be complementedby new investments planned towards 2016, by theMTC, having planned projects over US$ 20.5 billion(Public Works and PPA), which represents significantinvestment opportunities for contractors andoperators.

TRANSPORT INFRASTRUCTURE

Source : MTC(1) Includes public works and concessions, 7,270 km of paved roads, achieving 85% of the paved National Network, 100% of the Longitudinal de la

Sierra road and construction and rehabilitation of bridges (PERU PRO BRIDGE Program)(2) Waterways System Development of the Amazon to maintain safe navigation conditions 365 days a year, Ucayali, Huallaga, Marañón and Amazon rivers. Estimated value(3) Comprises the concession of Chinchero International Airport - Cusco. Estimated value(4) San Martin, San Juan de Marcona, Salaverry, Ilo, Pucallpa and Iquitos: Port Terminals committed investment(5) Committed investment: Line 1 section 2: 900 Mill USD; Line 2: Mill 5,701 USD. approximate value(6) Committed investment of granted concessions and other private initiatives are not included.

New investment foreseen in transport infrastructure to 2013 – 2016(US$ million including VAT)

Infrastructure Public Work PPP Total

Vial (1) 8,225 3,309 11,534

Waterways (2) 76 76

Airports (3) 776 776

Ports (4) 548 548

Railways (5) 7,627 7,627

Total 8,225 12,336 20,561

[email protected]

why invest in peru?€¦ · source: forbes (december2013) countries with the best investment...

Documents