Peru and the UK Sign Reconstruction Agreement

In June 2020, the UK government won Peru’s bid for the “Integral plan for the reconstruction of the damaged infrastructure of the Northern regions of Peru affected by floods in 2017″, also called the Reconstruction Agreement or Programme.

This government-to-government agreement involves the reconstruction of Peruvian infrastructure and the construction of preventative measures against natural disasters.

Parties involved in the Peru-UK Reconstruction Agreement

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The Reconstruction Agreement involves an investment of approximately US$2.020 billion.

The Reconstruction Agreement was signed on 22 June 2020, between the Peruvian government, represented by the Authority for Reconstruction with Changes (ARCC), and the UK government, represented by the Department for International Trade (DIT).

The investment is worth S/7 billion (approximately US$2.020 billion) and will last for 2 years, with allowance for a third year. The project will be carried out by 3 companies forming the UK Delivery Team: Mace Limited, Arup Limited and Gleeds International Limited.

The Peru-UK partnership is an enduring one. The UK was Peru’s lead partner while delivering the Lima 2019 Games, the fourth largest sports event in the world. Following the success of this partnership, the Reconstruction Agreement only further strengthens these regional commitments.

Reconstruction projects

The 2017 Coastal El Niño is a natural disaster that severely affected many Peruvian regions. Heavy rains, landslides, and floods destroyed infrastructure and crops, leaving people homeless. The Peru-UK Reconstruction Agreement will rebuild 9 affected regions: Tumbes, Piura, Lambayeque, Cajamarca, La Libertad, Ancash, Lima, Ica and Huancavelica.

Under the agreement, the UK Delivery team will reconstruct 74 schools and 15 new health centres in these regions. El Niño occurs every year, as such, the project also includes the construction of preventative solutions against potential future damage. This includes the construction of 7 storm drainage systems and management solutions for 17 rivers and 5 streams.

Impact of the project

The reconstruction of schools and health centers will generate jobs and create better living conditions for Peruvian citizens. The Reconstruction Agreement will ultimately grow the economy and lead to greater prosperity for the country as a whole.

According to Gleeds International Limited, the agreement will also “mark the beginning of a lasting relationship between the UK Delivery Team and our strategic network in the UK with local partners and communities in Peru.”

Looking to bring your project to Peru?

Peru is one of Latin America’s best performing economies offering many opportunities for investment. To ensure your success in Peru, it is best to cooperate with expert local and expat professionals

At Biz Latin Hub, we offer foreign companies a full suite of business service solutions from market entry, company formation and immigration support, through to trademark and annual accounting compliance services.

Contact us today for information about how we can support your expansion.

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