App: instability and cost overruns generates concern

The head of the Ministry of Economy and Finance (MEF), José Salardi, raised the reform and relaunch of the Mechanism of Public-Private Associations (app) in order to accelerate the closure of infrastructure gaps “in the short term”.

During the event “Public-Private Associations: Where are we going. Opportunities and challenges in APP Projects Financing”, organized by the MEF and the CAF ASSET Management, Salardi said that this model is the best mechanism to develop sustainable infrastructure in Peru . In addition, he stressed that he is aligned with the commitment of his management to accelerate growth.

“A self -financed addenda cannot be delayed in Peru more than six months. We take up to five years having discussions that make no sense when the private is the expert in the business; And the private level must be required, ”said the minister.

For his part, the Executive Director of Proinversion, Luis del Carpio, stressed that the App awards In 2024 they reflect the confidence of the private sector in the country and in its long -term development.

And is that the amount awarded to date, near US $ 9,000 million for 16 awardsrepresents 25% of what is necessary to close the short -term infrastructure gap. In that sense, he said that if this rhythm is maintained in the coming years, the objective could be achieved in four years.

Debate of its implications

Economist Armando Mendoza pointed to the Republic that, added to the statements of Dina Boluarte on July 28, the minister’s words show that the government is committed to promoting as many app as possible until 2026.

“I have great concern for the announcement, considering that the experiences of the app in Peru have not been exactly bright,” Mendoza said.

There are apps that have been very expensive for the Peruvian state. An example is the Chinchero airport, where an insufficient advance was recorded after granting the concession to a private without financial solvency. Also the interoceanic highway, built by Odebrecht, whose cost rose from US $ 700 million to US $ 4.5 billion in 2017. And more recently, reports would indicate that the construction of the Bicentennial schools per APP would cost the double per square meter compared to comparison a state execution.

“Many times it is sold to app as a kind of corporate social responsibility that will not cost the State or citizens. Fake. It is a business where the private looks for profitability, ”he said.

Luis Miguel Castilla Rubio, former Minister of Economy, said apps are a “Effective instrument” because they facilitate the financing of works for the community and guarantees their long -term operation and maintenance by the private sector.

“The problem of traditional public works is that, once built, its maintenance and operation are in the hands of the State, which has proven inefficient,” he explained.

However, he warned about the constant modification of the laws and regulations of the app, which generates uncertainty and paralyzes decision making.