Businessmen argue that it would be a catastrophe for Arequipa to lose Majes II

By: Elizabeth Huanca

The Arequipa region has investment projects in its portfolio for US $ 7 billion. Of these, the only one that is “just around the corner” and with the flat road to be completed is Majes Siguas II.

The rest includes four mining projects valued at US $ 5.4 billion: Zafranal, Pampas de Pongo, Don Javier and Tía María, whose start is expected from 2023. The viability of the last one is more complicated. It has been practically ruled out by the Pedro Castillo government, due to the lack of social license in the Tambo valley. It represents an investment of US $ 1,400 million.

Under these conditions, the president of the Arequipa Chamber of Commerce and Industry (CCIA), Luis Caballero, assured that losing the agro-industrial project “would be catastrophic for the region.” He recalled that beyond the investment of Majes (US $ 645 million), the impact on job creation must be measured, calculated at 120 thousand jobs.

Majes II would also have a positive collateral effect, it would allow the execution of the Lluta and Lluclla hydroelectric plants, the energy component of the project and whose investment is US $ 970 million. “Arequipa does not have many investment projects. There is no generation of new projects a few years ago. (After Majes) there is nothing closer to Arequipa ”, he remarked.

The project to date, is in the hands of the Regional Council, the final instance that must determine whether or not to give the green light for the Regional Government to sign Addendum 13 of Majes II, amending the final contract. In this, its infrastructure is changed from open channels to pressurized pipes. If the regional legislature rejects the signature, the executing company (Cobra) would take the case to an international arbitration, which would paralyze Majes for several years.

I urge CRA

In that sense, Caballero called on the regional councilors to obtain technical information and approve addendum 13. “Majes has already passed the filter of the Ministry of Economy, ProInversión, Comptroller (…) (The directors) have the right, due to the situation, to have certain fears, but to be informed at a technical level (…) We do not have another Majes Siguas II for Arequipa ”, he commented.

Caballero also was against reducing Majes’s land module, set at 200 hectares. The businessman warns that if this happens, as proposed by various sectors, the profitability of the project is put at risk.

Until January 2022

The regional governor, Kimmerlee Gutiérrez revealed that the company has been formally asked to extend the deadline until January 31, 2022. The concessionaire resists. They want the future of the project to be defined before the end of 2021. Gutiérrez, seeks to find consensus among the directors to approve the addendum. v

No date for the session

The debate for addendum 13 does not have a date set in the Arequipa Regional Council (CRA).

However, for the counselor Harberth Zúñiga, the issue is technically exhausted so it should already be analyzed in the CRA.

The plenary session meets on Tuesday, December 14. For that date, what would be considered is the report on the beginning of the vacancy process of the directors, Santiago Neyra, Wuile Ayñayanque and Richard Cervantes, today a fugitive and investigated for the case “The children of the condor.”