Overview
- The bill, introduced by congressman Edgard Reymundo of the Bloque Democrático Popular, would prohibit execution via concessions, PPPs or private initiatives that transfer control or economic exploitation to the private sector.
- It directs a strictly public execution under the Transport Ministry with allowance for a Project Management Office and government-to-government arrangements already in place.
- Financing options specified in the proposal include bond issuance, a new permanent Extraordinary Mining Income Tax (IREM), and an annual transfer of 3% of IGV collected in Junín, Huancavelica, Ayacucho, Pasco and Huánuco.
- A proposed oversight council would include the governors of the five regions, the transport and finance ministers, and civil society representatives to monitor the project.
- Prime Minister Denisse Miralles recently cited a current cost estimate of S/30,000 million versus an earlier S/12,000 million, and signaled the project would not be funded entirely with public resources, while the bill awaits congressional debate.