Outstanding Economic Performance Thirteen years with positive GDP. Growth led by private investment, domestic consumption and recovery of public investment. 2013 Estimated GDP: 6.3% (BCRP) Source: BCRP Source: MEF Peru has been liberalizing external trade through tariff reductions in recent years Enhanced market access through new bilateral agreements with strategic trade partners. Peru: Average Tariff %
Peru will continue leading regional growth LA Economic Forecast Real GDP Growth (2013-2015) Source : IMF, CEPAL, World Bank Source: Banco Central de Reserva del Perú, Ministerio de Economía y Finanzas y Fondo Monetario Internacional. Private Investment 2002-2012 (Billion U.S. $)
Improving Business Indicators to boost Exports Source: Doing Business LA Doing Business 2013
And improving Investment grade ratings to give the best investment environment Latin America Investment grade rating Source: Standard & Poor `s, Fitch Ratings and Moody's. UNCTAD (WIR 2012) PaísS&PFitchMoody´s Chile AA-A+Aa3 México BBB Baa1 Brasil BBB Baa2 Perú BBB Baa2 Colombia BBB- Baa3 Venezuela n.d.B+B2 Argentina B-CCB3 Ecuador BB-Caa1 Countries as a priority destination For FDI 2011-2013 ( World Ranking 21 countries)) 4 Brazil (Baa2) 3 Perú (Baa3) 16 21 Chile (Aa3) 18 20112010 18
Gateway to South America, Exit door to the world! PERÚ: HUB OF BUSINESS IN SOUTH AMERICAN PACIFIC
INVESTMENT SUMMARY CHART TO 2016 (MILLIONS OF US$) CONCEPT PUBLIC INVESTMENT CONCESSIONS TOTAL PPA ROAD INFRASTRUCTURE8,2253,30911,534 WATERWAY INFRASTRUCTURE - 87 AIRPORT INFRASTRUCTURE - 500 PORT INFRASTRUCTURE - 548 TOTAL (/1) 8,2254,44412,669 SOURCE: MTC-Ministry of Transport and Communications Not including committed investments in existing concessions and Private Initiatives (IP) to be granted.
Infrastructure Concession Road Infrastructure Before After
PortConcessionaireInvestment by contract USD Millions Works Started in year Matarani Port terminalTISUR61999 New Container Terminal Callao DPW DPW7042008 Paita Port TerminalTPE2692012 MINERAL shipping terminal TP Callao - Consorcio Transportadora Callao S.A. 1202012 Multipurpose North Terminal APM Terminals8832012 Yurimaguas Port Terminal - Nueva Reforma Puerto Amazonas SA432013 Source: Supervisory Agency of investment in transport infrastructure for public use - OSITRAN CONCESSION OF PORTS IN PERU (1999 – 2013)
MAJOR INVESTMENT COMMITMENTS Phase one (complete) Phase two (in progress) Land reclaimed from the ocean Construction of a container dock, Dredging of 13 meters. Additional port equipment and reinforcement of existing piers. Paita Port Terminal New Container Terminal Callao DPW Five Stages of execution Construction Optimization of new docks and procurement of equipment Modernization of other docks and container yard to have a first-class multipurpose terminal Terminal North Multipurpose
CONCESSIONS PROCESSES IN EVALUATION Investments 2013 - 2016 13 CONCESSIONS INVESTMENTACTUAL STATE M USD Terminal Portuario General San Martín (Pisco) 110In Process 2013 Terminal Portuario San Juan de Marcona 149Private Iniciative Terminal Portuario de Salaverry 129Private Iniciative Terminal Portuario de Ilo 100In Evaluation Terminal Portuario Pucallpa (Fluvial) 35 Private Initiative Terminal Portuario de Iquitos (Fluvial) 25In Formulation T O T A L E S548 Source : Ministry of Transports and Comunications. SALAVER RY MARCONA SAN MARTIN IQUITOS ILO PUCALLPA Progress: In 2012 Transport and Comunicating Minister, acted as a facilitator of investment in 113 Mill USD in the concessions. Remaining investment by executing: 1,527 Mill USD.
Jorge Chavez International Airport. Airport Infrastructure New Terminal -Concession in 2001 for a period of 30 years. - Investment: $ 1 061 millions in the long term. -Construction, improvement and operating of the AIJCH -In 2013 has been chosen for fifth time in a row as the Best Airport in South America. February 2001 May 2013
NEW INTERNATIONAL AIRPORT OF CHINCHERO-CUSCO Location: about 29 km. the road Cusco (province of Urubamba, department of Cusco). Airport Elevation: 3,720 m Estimated users: 4.7 million passengers (to 2030) Investment: 500 million U.S. $ General Progress: Pre-investment studies in preparation Grant Awarding Concession: Dec-2013 AIRPORT INFRASTRUCTURE New Terminal
Government Role and Strategic Development Policy Challenges
2011 – 2016 Objectives and strategies Duplicate total exports (USD 86,000 million). Triplicate Non – Traditional exports (USD 7,600 to USD 21,000 million). Duplicate the number of exporters (+ 15,600 companies). Utilisation with Social Inclusion SME Export Internationalization of Peruvian companies Trade Facilitation Building Trade Capacity OBJECTIVES.
Strategies to increase exports Promote Peruvian non traditional exports to markets with FTA. Promote and support SME- participation at PROMPERUs activities. Market Diversification for products prioritized. Promote export development of valued-added products. Distribute specialized information: to exporters and different stakeholders. Promote decentralized activities in Peru.
Mainly increase non traditional exports in markets with FTA US$ 11,194 millions exported 9.8% Growth 12/11 7,890 exporters 15 +147% Singapur 49 +68% Thailand 93 -1% South Korea 330 -2% China 105 +9% Canada 43 +60% EFTA 2,615 +12% United States 243 +11% Mexico 584 +13% MERCOSUR 705 +16% Chile 3,197 +15% Andean Community 131 -2% Japan 124 +36% Panama 10 -3% Cuba 1,897 -4% European Union 6,570 SME
Actively participate in the regional group Alianza del Pacifico Built a free trade area for goods, services and persons. Boost growth, development and competitiveness among members. Be the platform for trade and policy integration to the world, and specifically to Asian-Pacific markets MembersChile Colombia Objetives Perú México Importance 8 th economy of the world. 5 th major market at the world (213 million people). 4.1% average exports growth. Source: Euromonitor, IMF Data Elaboration Promperú (1)PBI Chile: 268, Colombia: 370, México: 1,178, Perú: 200 (2)Var. % del PBI Real, crecimientos individuales: Chile, 5.6%; Colombia, 4%; México, 3.9%; Perú: 6.3%
Source: SUNAT. Elaboration: PROMPERÚ Development of Peruvian Exports 2003 – 2012 (Millions US$) (-0.7%) 46,008
World Leader: Traditional and Non Traditional Products Traditional. Non Traditional.
Challenges Ahead Strength and Develop Peruvian commercial offices in relevant markets