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Infrastructure Alert – November 2019

ALERT- INFRASTRUCTURE

Enactment of Extraordinary Measures to Promote and Implement Prioritized Projects of the National Infrastructure Plan for Competitiveness

On Thursday, November 28, Emergency Order No. 018-2019 was published in the Official Gazette “El Peruano”, whereby it is set forth to establish Extraordinary Measures to Promote and Implement Prioritized Projects of the National Infrastructure Plan for Competitiveness.

The regulation aims to establish a series of extraordinary measures to promote investment in order to boost economic growth through an adequate implementation of the prioritized project portfolio of the National Infrastructure Plan for Competitiveness (“PNIC”) (available in: https://www.mef.gob.pe/contenidos/inv_privada/planes/PNIC_2019.pdf). Such measures are applicable both to public entities of the Peruvian, Local and Regional Government, and to owner of PNIC prioritized projects.

Below, approved measures are shown as follows:

– PNIC prioritized projects, as well as their supplementary projects, shall be exempted, provided that land improvement or residential construction permits regulated under the Land Improvement and Residential Construction Act (Act No. 29090) are obtained. When projects are related to real estates that are part of the Peruvian Cultural Heritage, the Ministry of Culture shall issue a pertinent authorization.

– In the event that areas needed for execution of PNIC prioritized projects coincide with other project areas, it is established that the pertinent public entities shall pay fees, obligations or encumbrances that hinder the execution of PNIC prioritized projects, as well as necessary measures are set forth to make those projects execution viable.

– Regarding submitting requests to obtain permits for the development of PNIC prioritized projects, public entities shall comply with deadlines and requirements set forth in the pertinent regulation, upon administrative responsibility.

– Public entities of the Peruvian Government, owners of PNIC prioritized projects are authorized, as an alternative to the Legislative Order No. 1192 (Framework Law of Property Acquisition and Expropriation), to establish directly the assessment value of properties needed for the execution of projects being under their responsibility.

– Owners of PNIC prioritized projects are entitled to finance or execute directly activities or interventions needed to clear, remove or relocate interferences. National Government entities are also entitled to enter into agreements with pertinent regional or local governments to execute projects supplementary to those PNIC prioritized.

– Contracting work and services to acquire areas and clear interferences for PNIC prioritized projects, as well as their supplementary projects, is exempted from compliance of provisions of Act No. 30225 Public Procurement Act (subject to certain budgetary ceilings).

– Measures are issued to ensure effectiveness and predictability of environmental and archeological intervention processes.

– Public convenience, necessity and national interest are established for 42 investment projects. Public convenience is also established for 10 additional projects.

– Finally, several measures are issued to facilitate such project financing, among others.

Pursuant to Section 16 of the regulation, this Order will be in force for 3 years.