Infrastructure Alert - September 2026
Tax Incentives for Works to Address the 2026–2027 El Niño Phenomenon
On September 9, MIDAGRI approved the list of services that may be carried out under the Works for Taxes (OxI) mechanism to address the 2026–2027 El Niño phenomenon. It did so through Ministerial Resolution No. D000351-2026-MIDAGRI-DM. This regulation implements the exceptional regime established by Emergency Decree No. 010-2026, which authorizes the execution of emergency IOARRs under Law No. 29230. The regime will remain in force until December 31, 2027.
The list includes prevention, preparedness, and response activities, including:
- Removal of sediment, riverbank protection, and cleaning of riverbeds, ravines, and drainage systems.
- Comprehensive rental of heavy machinery for emergency situations.
- Pumping operations.
- Slope stabilization to protect irrigation canals.
- Rehabilitation, cleaning, and lining of small reservoirs.
- Temporary water storage for agricultural use through geotanks.
This regulation also approves the technical specifications setting out the minimum content required for the interventions, which must include a diagnosis of the exposed area, the technical proposal, physical targets, budget, schedule, beneficiaries, protected areas, among other aspects.
Standardized Forms Now Available
The Ministry of Economy and Finance (MEF) complemented the implementation framework of Emergency Decree No. 010-2026 through Directorial Resolution No. 004-2026-EF/68.01, issued by the General Directorate of Private Investment Promotion Policy. Through this resolution, it approved 23 standardized documents for the implementation of Works for Taxes (OxI) under Emergency Decree No. 010-2026.
These forms cover the entire project cycle, from prioritization and resource accreditation to the appointment of the special committee, reports for direct contracting, invitation and evaluation of proposals, investment agreements for emergency IOARR projects, supervision contracts, approvals, liquidations, and requests for the issuance of CIPRL or CIPGN.
As a result, a comprehensive framework is now in place to enable the implementation of swift and effective interventions to address needs arising from the 2026–2027 El Niño Phenomenon.