Peru: rich opportunities for investment in non-ferrous metals resources
Aug 31, 2017

Peru: rich opportunities for investment in non-ferrous metals resources

Carlos Nunez, partner of China law firm, made a thorough analysis of the investment opportunities and possible legal problems in Peru on the 28 China Latin American investment opportunities Forum (2017).

Peru's economic environment has steadily improved

Peru's macroeconomic indicators have been strong, but Peru has managed to achieve a positive growth in gross domestic product, despite the period of commodity booms. In 2000, the average GDP growth rate of -2016 was 5.1%, ranking first in Latin America's major economies. 2017 growth forecast of 3.5%, continue to lead Latin American countries. The country's public debt, which accounts for 24.5% of GDP in 2017, is running out of fiscal deficits, and real growth is recovering.

Carlos pointed out that the formation of Peru foreign investment security system framework, including no discrimination, no restrictions on foreign investment in almost all industries, capital can flow freely, do not limit access to stocks, freely available from the local internal and external credit and other important items at the same time, the refinement of antitrust framework will also further promote the benign market competition. Such a responsible economic policy based on the Peru A3 rating released in February this year, Moodie rating, and according to the world bank's 2017 business report, Peru business facilitation rankings in the top three in Latin america.

Since 2008, the government of Peru has issued bills to gradually realize the consolidation of public-private partnerships, integrate with international standards, combat corruption and increase transparency in order to improve project quality.

Real estate private investment active

Peru is rich in resources, productive capacity, and has always been a leader in metal production. It is one of the largest producers of copper, silver, zinc, gold and lead. In recent years, investment in mining infrastructure projects has increased significantly. In 2015, the total investment reached 7 billion 500 million US dollars. At present, there are 48 priority mining projects. 6 of them are in the expansion phase, 14 environmental impact studies (EIS) have been approved or are in the construction phase, 4 of the EIS have been submitted, and the other 24 are in the exploration stage.

Private equity investment in the Peru housing industry is very active. In other major cities in Lima and Peru, several projects are being developed, including residential, office and commercial centres. As the office and commercial center in the region and Lima surrounding area coverage is still very low, so the office and commercial center construction areas have great room for growth. According to the Peru business center and Entertainment Association (ACCEP) statistics, as of the end of 2013, the country's business center has 83, of which 54 are located in each province, and the other 29 in the capital Lima. The business centres have 5512 stores, bringing total sales of $6 billion 700 million.

The Peru power generation project also has a number of noteworthy investment opportunities, including the expansion of existing power generation facilities, including the construction of new power stations. Power delivery and distribution projects also have considerable potential. At present, 69% of the total investment in power projects is investment in power generation, 5% is power transmission, and 16% is power distribution. According to a survey conducted by the United States Geological Survey in 2013, it has a total capacity of 165377 megawatts of water power generation. The potential of wind power is 77000 mw. Solar power generation potential of about 6.0kW.h/m2 per day, mainly concentrated in coastal areas. However, the current development and utilization of wind energy and solar energy are at a low level.

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