Photo: X account of Presidency of Peru.
The President of Peru, Dina Boluarte, announced the creation of a Joint Commission between China and Peru aimed at facilitating a portfolio of Government-to-Government (G2G) projects, focused on developing “productive infrastructure and social services” in Peru.
“As a result of the state visit we made to China, we are setting up a Peru-China Joint Commission to develop a portfolio of projects under the State-State modality that will allow the execution of important investments for the development of productive infrastructure and social services, generating thousands of jobs,” Boluarte stated.
Previously, Boluarte had also announced the formation of a Ministry of Infrastructure to centralize the work of the various agencies responsible for investment promotion under a single entity.
A G2G agreement is a mechanism that allows governments of different countries to collaborate in generating joint projects. It is considered one of the most secure arrangements, as the guarantees and studies are provided by a state, rather than by the private sector. In addition, G2Gs usually involve large investments of capital.
Boluarte also mentioned that, in the remainder of the year, "the eyes of the world” will be on Peru as it prepares to host the Asia Pacific Economic Cooperation (APEC) Summit this coming November, during which the Chancay mega-port, a huge project developed by China on the Peruvian coast, will be inaugurated.
The announcement of the formation of the Joint Commission follows other infrasturcture projects recently announced by the Peruvian government, including the Lima-Ica and San Juan de Marcona-Andahuaylas railroads, with a combined investment of almost US$15 billion. Both projects will also be developed under the G2G model.
China's investments in Peru exceed US$30 billion, according to the Peruvian-Chinese Chamber of Commerce (Capechi).
From June 26 to 29, President Boluarte carried out a state visit to China, where she met with President Xi Jinping and held meetings with businessmen as well as the Chinese private sector to discuss agreements and strengthen bilateral relations between the two countries.
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