This summer, the Peruvian Government announced that the UK as their delivery partner under a new ‘Government to Government’ (G2G) agreement for their ‘Reconstruction with Changes’ Programme. The initial two-year programme includes the reconstruction of 74 schools, 15 hospitals/health care centres and a variety of flood-prevention solutions across 13 areas in Peru, valued at a total of £1.6 billion. Jo Crellin (pictured), Her Majesty’s Trade Commissioner Latin America & the Caribbean talks to the CEA about the opportunities in Latin America…
For the UK, this marks a significant moment in our trading relationship with Peru and the rest of Latin America. As a region, Latin America is developing. With a combined GDP of US$5.3 trillion, by the end of the next decade, the total population of the region is estimated to surpass 700 million; with more people expected to live in Mexico City and São Paulo than the entirety of Spain.
This growth comes with 21st-century challenges: delivering development that is inclusive and sustainable, tackling and mitigating climate change, and dealing with the COVID-19 pandemic. Governments around the region are planning large-scale investment in infrastructure to meet these needs. At the end of July this year, President Piñera of Chile announced a total of US$34 billion in funding for infrastructure projects over the next two years, and the President of Peru announced a further $15bn investment in four key megaprojects. Meanwhile, major markets such as Colombia, Brazil and Mexico are taking forward ambitious flagship projects: wastewater treatment plants in Bogotá and Rio de Janeiro valued together at around USD$6bn; the USD $3bn modernisation of 3 new Airports surrounding Mexico City; and smaller markets such as Costa Rica and Panamá also have ambitions projects on the cards, including a new 73km Electric Train project circling San José.
From water treatment to railways, to healthcare and transport, Latin America is growing, and this presents significant export partnership opportunities for UK industry and to expand our built environment expertise.
Under the Peru G2G reconstruction agreement, for the next two years, three UK companies (Mace, Arup, Gleeds) will support the delivery arm of the Peruvian Government (The Reconstruction with Changes Authority “ARCC”) to procure and deliver their reconstruction package. The pre-qualification and invitation to tender (ITT) process for the design, build and equipping of the first ‘wave’ of priority integrated solutions, 9 hospitals and 36 schools is underway. We are reaching out to the UK supply chain to support them in accessing these opportunities.
But the immediate opportunities in Peru do not end there. Next year we’ll see the procurement process launch for ‘wave 2’ of reconstruction, the ARCC set out plans for a further three-year extension of Reconstruction programme (valued at an initial £4.6 billion) and the development of a new G2G tender for the extension and development of a Lima Metro Line.
For UK companies operating in the construction supply chain, considering exporting opportunities beyond existing saturated markets, this is a unique moment in Latin America, and I would encourage you to find out more.
If you are interested in marketing your product or services to the Peruvian reconstruction market or any of the other infrastructure opportunities in Latin America or please contact our team at email@example.com
Photograph courtesy of https://www.goodfreephotos.com/