Peru to Help Finance $7 Billion of Projects to Spur Economy

Peru’s government will help provide financing for $7 billion of private infrastructure projects to boost investment after economic growth sagged last year.

The Andean nation approved requests from companies to partially finance 22 projects in industries including transportation, health care and education, Finance Minister Alonso Segura told Radio Programas. Peru will award the contracts to design, build and operate the infrastructure over the next 18 months, he said. He didn’t specify what percentage of projects the government would support financially.

The government wants to spur infrastructure outlays to offset slowing mining investments in the world’s third-largest copper producer as metal prices slump. Among the projects is a $2 billion ring road for Lima designed to speed up cargo traffic to and from the Callao port district, Segura said.

“It’s a diverse group of projects that’s going to help close the infrastructure deficit,” Segura said, adding that the government has room to meet the additional financial burden.

The sol depreciated 0.1 percent to 2.9846 per U.S. dollar at 11:01 a.m. local time, the worst performance among seven Latin American currencies tracked by Bloomberg after the Chilean and Colombian pesos.

South America’s sixth-largest economy expanded 2.6 percent to 2.7 percent last year, less than half the pace of 2013, President Ollanta Humala said Jan. 5. The statistics agency hasn’t yet published economic data for the fourth quarter.

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