Peru

Peru has maintained a formal PPP framework since 2008, supported by established institutions and extensive project preparation procedures. In September 2025, Law No. 32441 replaced the framework established in 2018, with implementing regulations adopted in December 2025 and further amendments in February 2026.^1,2,3 The reforms substantially expanded ProInversión's responsibilities, enabling it to lead the preparation, procurement and contract management of new national-government PPPs, functions previously divided among multiple public entities. They also streamlined interagency reviews and established dedicated PPP appraisal procedures separate from the general public-investment system. These changes aim to accelerate project delivery and improve institutional coordination, although their effectiveness remains to be demonstrated.

Peru has an established PPP market spanning transport, energy, water, sanitation and social infrastructure. Project awards accelerated in 2024, when ProInversión awarded 15 transactions totaling approximately US$9bn, including conventional PPPs and other private-investment arrangements such as asset development and exploitation agreements.⁴ Major concessions included the US$3.4bn Lima Peripheral Ring Road and the Huancayo-Huancavelica railway.⁵ This activity preceded the 2025 regulatory overhaul, which aims to sustain momentum by addressing institutional bottlenecks. ProInversión has continued promoting a substantial pipeline of transport, sanitation and other infrastructure projects.⁶ Implementation and financial close remain important tests of whether recent awards translate into sustained investment.

Peru has maintained political support for PPPs despite frequent changes in national leadership and a fragmented political environment. The current administration (2026 to present) has an explicit PPP agenda covering transport, energy and water infrastructure.⁷ Support also extends across political parties: Congress approved the 2025 PPP reform by 93 votes to 11, with six abstentions.⁸ Although some concessions have attracted criticism over tolls, contractual imbalances and transparency, such concerns have generally focused on individual projects rather than opposition to PPPs as a model.⁹ Broad legislative support for the reforms suggests that PPP policy has retained continuity despite wider political divisions.

Peru ranks 1st regionally in the project preparation and sustainability category, supported by national infrastructure plans, structured project prioritization and comprehensive appraisal procedures, including economic and fiscal assessments. Its PPP institutions and technical capacity also underpin strong performance in the regulations and institutions category. Peru ranks second in risk management and contract monitoring, reflecting well-defined risk allocation, contingent liability management and contractual protections. Disaster insurance and force majeure arrangements are comparatively well developed, although requirements for integrating disaster risk into project preparation remain less comprehensive.

Peru's weakest category is performance evaluation and impact (ex-post), despite scoring above the regional average. Although ProInversión conducts selected ex-post evaluations, limitations remain around standardized methodologies explicitly covering the broader PPP portfolio, independent evaluation arrangements and formal mechanisms for applying findings to future projects. Despite relatively effective project monitoring and reporting arrangements, contract management procedures could be strengthened through more systematic requirements for PPP contracts to address construction-to-operation transition planning, stakeholder engagement and information management.

Peru's overall index performance has remained broadly stable, despite substantial regulatory reforms since the previous edition. The 2025-26 overhaul expanded ProInversión's responsibilities and reorganized project appraisal and procurement procedures. New sustainability requirements have strengthened climate considerations in infrastructure planning, while improved evidence has clarified existing environmental and community consultation provisions. ProInversión has also demonstrated greater activity in evaluating operational PPP outcomes. Financing performance declined somewhat, largely reflecting reduced institutional investor participation and project-bond financing rather than changes in financing conditions.