PERU Trends and Developments Contributed by: Alfred Kossuth Wieland and Edgardo Bernal Santos, Thorne, Echeandia & Lema Abogados
Introduction Peru represents one of the most stable economies in Latin America, and has maintained solid macroeco - nomic indicators as a result of monetary and fiscal policies that have enabled the favourable develop - ment of various productive sectors. In this context, the Central Reserve Bank of Peru projected that the country’s Gross Domestic Product (GDP) would grow by 3.2% in 2025, driven by private consumption and improved performance in the agri - cultural and mining sectors. The Bank also indicated that investment was expected to increase by 6.5% in 2025 and by 3.5% in 2026, following a 9% increase during the first half of the year. Against this backdrop, the Peruvian State has recent - ly adopted regulations and entered into international agreements aimed at the continued promotion and safeguarding of foreign investment across all sectors of economic activity. Public-Private Partnerships A new law regulating the Promotion of Private Invest - ment through Public-Private Partnerships and Asset- Based Projects was enacted in the last quarter of 2025. This statute repeals the previous law bearing the same title and will enter into force once its imple - menting regulations are issued (which is expected in early 2026). The purpose of this law is to promote investment through such mechanisms, recognising their contri - bution to national economic growth, the reduction of infrastructure and public service gaps, the generation of productive employment, and the enhancement of the country’s competitiveness. Contractual aspects of associative contracts The main innovations introduced by the new public- private partnerships framework include the possibil - ity for contractual amendments to include additional investments, even where such investments are exe - cuted outside the originally concessioned area or beyond the initially agreed term, provided that they are related to the purpose of the project and justified by the generation or recovery of economic and social value.
In addition, the law provides that sector-wide emer - gency situations declared by the competent authority will not necessarily require formal contractual amend - ments, and may instead be implemented through duly documented direct agreements between the parties. Furthermore, at least three years prior to the expiration of the contract, the public entity may initiate a new process to ensure service continuity, whether through renewal, a new private investment promotion scheme The State promotes and guarantees foreign invest - ments made or to be made in Peru, across all sectors of economic activity and under any corporate or con - tractual structures permitted by domestic legislation. Accordingly, foreign investments are defined as capi - tal originating abroad and invested in income-gener - ating economic activities under any of the following modalities: or an alternative mechanism. Legal Stability Agreements • capital contributions by foreign individuals or legal entities, through the National Financial System, to the capital of new or existing companies in any corporate form recognised under the General Corporations Law, whether in freely convertible currency or in physical or tangible assets such as industrial plants, new or refurbished machinery and equipment, spare parts, raw materials and interme - diate products; • investments in domestic currency derived from funds with the right to be remitted abroad; • conversion of private foreign obligations into equity; • reinvestments made in accordance with applicable legislation; • investments in assets physically located within the territory of the Republic; • intangible technological contributions, such as trade marks, industrial designs, technical assis - tance and patented or unpatented know-how, which may be contributed in the form of physical assets, technical documentation or instructions; • investments aimed at acquiring securities, finan - cial instruments or documents traded on stock
460 CHAMBERS.COM
Powered by FlippingBook