DUBLIN--(BUSINESS WIRE)--Research and Markets (http://www.researchandmarkets.com/research/6cb40d/peru_infrastructur) has announced the addition of the "Peru Infrastructure Report 2012" report to their offering.
BMI View: H1 2011 elections in Peru have played havoc with an otherwise strong growth market. The presidential elections both saw construction work halted in the run-up and uncertainty in the aftermath, as left wing candidate Ollanta Humala was elected. However, with Humala moving more central and therefore not threatening private investment, we anticipate a resumption of activity and interest in what has the potential to be a strong growth market.
Strong growth outlook is based on:
- Billions of dollars is being ploughed into Peru's mining sector, putting pressure on the country's existing infrastructure and creating huge demand for new capacity. Mining is typically both electricity- and water-intensive; this is placing a strain on existing infrastructure, which in turn is threatening mining activity. Therefore investment into desalination plants, expanded electricity supply and more reliable transmission and distribution is crucial to the sector, as well as the country's economy.
- The power sector is seeing increased interest in renewables, with wind power and biomass, in particular, attracting attention. As developed markets cut back subsidies and incentives, Latin America is seeing growing interest from renewable developers. Peru desperately needs to diversify its electricity mix away from hydropower, and renewable seems to be a popular choice.
- Peru has a large concession pipeline, orchestrated by private investment agency ProInversion. The agency has a significant pipeline of infrastructure concession due to go to market in the next year, including four ports, airports, power infrastructure and desalination plants. The agency in itself is a good omen for the potential to attract investors. Although some delays have been seen in tendering thus far, substantial interest has been noted, and therefore we anticipate a successful tendering process once projects go to market, unlocking significant investment.
Companies Mentioned:
- OHL Concesiones
For more information visit http://www.researchandmarkets.com/research/6cb40d/peru_infrastructur.