Why this is important to Wisconsin businesses: The Latin American nation needs assistance with rebuilding roads, bridges and other infrastructure after the 2017 floods.
Peru, one of Latin America's most dynamic and prosperous economies, has been undergoing a major reconstruction process in several of its cities due to the devastating effects of the El Niño floods that struck the northern part of the country in early 2017. Over 150 bridges as well as thousands of roads, hospitals and schools collapsed, and many people were left homeless.
These devastating events have opened up opportunities for local and foreign companies to help rebuild. As a first step, a reconstruction authority, Autoridad para la Reconstruccion con Cambios (ARCC), was created and reports directly to the Peruvian prime minister's office. The ARCC will manage and allocate a $6.5 billion budget for the reconstruction process, while the respective ministries and regional governments will handle planning and execution. Most of the reconstruction expenditures are expected to occur during 2018 and 2019.
The priority areas the government has identified are housing, health, education and labor (employment). All projects will be posted for public bidding, and foreign companies do not need to be registered as state suppliers to participate in bidding, though it is highly recommended to partner with local companies to bid for these opportunities.
These ministries have the following approximate budget amounts for projects:
- Culture: $7.5 million
- Agriculture: $2.5 billion
- Environment: $9.5 million
- Trade and tourism: $14 million
- Education: $75 million
- Health: $240 million
- Transportation and communications: $100 million