Following severe flooding in early 2017, the government unveiled the Reconstruction with Change plan to rebuild infrastructure and re-energise the economy, with an expected investment of over US$7 billion. Several delayed projects to improve Peru's roads, ports and airports are also expected to resume, boosting construction growth in the coming years.
With Peru’s government actively seeking private investment in infrastructure, Singapore companies which specialise in master planning and urban infrastructure will be able to support Peru’s ongoing development. Peru’s Ministry of Economy and Finance expects private investment in the infrastructure industry to grow by 5% in 2018, 5.7% in 2019 and 6.3% in 20201.
1: Economic and Financial Document, 2017
Mining is electricity- and water-intensive. The continued growth of Peru’s mining industry is placing immense pressure on the country’s water infrastructure and creating demand for new capacity. Investment in desalination plants, expansion of the country’s electricity supply, and more reliable transmission and distribution is crucial to both the industry and the wider economy.
With investments surpassing US$4 billion over the past 15 years, the Peruvian government is committed to improving the industry. Singapore companies can benefit from this by teaming up with local construction companies to build and operate water treatment facilities. Apart from water solutions, Singapore companies in the power industry could also enter the market to meet the mining industry’s growing energy requirements.
Peru’s transport infrastructure spending is expected to rise to US$5.5 billion in 2019.
There are 31 existing land (road and railroad), port and airport infrastructure concessions which represent investment commitments of about US$14 billion.
Projects that have been moved forward include the port of Pisco as well as the Jorge Chávez and Chinchero airports. There are opportunities for Singapore companies in providing master planning solutions for further port and airport projects, as well as downstream, in providing operations expertise or solutions.
Peru’s ICT industry has seen robust average annual growth of 8.9% from 2012 to 20161, with total spending expected to reach US$2.81 billion in 2019.
With Peru’s government having a long-standing e-government policy, Singapore companies can look into providing ICT solutions in areas such as e-government and e-learning.
1: Oxford Business Group report, 2017
Peru's agricultural industry has retained its positive growth outlook since 2015 and is expected to grow at a CAGR of 4% over 2017-2020. The major agricultural export is coffee, with other important crops including asparagus and avocados.
Singapore companies experienced in the trading and processing of agricultural products are well-placed to enter Peru’s high growth agri-business industry.