News banner image


Peru’s regional governments to improve management of public sector investment with $20 million IDB loan

Peru will improve the management of regional public sector investments with the support of a $20 million loan from the Inter-American Development Bank (IDB). The loan will help fill gaps in the provision and quality of high priority public goods and services for socio-economic development, particularly in regions with the highest poverty rates. 

"This project aims to improve the quality, timeliness, and sustainability of regional governments’ public investments, through better allocation of public resources to cover gaps in socio-economic development. It will also reduce the execution time of public investment projects and provide budgetary funds necessary for the operation and maintenance of completed works," said Axel Radics, IDB Team Leader. 

The program will have three components, which will focus on:

  • Improving regional governments’ ability to manage public sector projects throughout their investment cycle (time-lining, pre-investment, implementation, and post-investment).
  • Optimizing the management abilities of government entities responsible for public sector investing.
  • Establishing a fund to provide incentives for the authorities and operators of the National System of Public Investment (SNIP) in regions with the highest incidence of poverty.

The IDB loan is for 25 years with a grace period of 4½ years and an interest rate based on LIBOR. Peru’s Ministry of Economy and Finance will implement the project.