The farming sector in Peru acummulated 14 months of consecutive growing in February of this year. The Peruvian Cabinet of Ministers recently approved a Project to modify the Law related to the Organization and Functions of the Peruvian Ministry of Agriculture and to create the new Ministry of Agriculture and Irrigation.
It stands out, within that scenario, an investment close to US$20 millions carried out in Peru by the Israeli irrigation firm Netafim, for the opening, in March in South Lima, of the biggest plant in Latin America of tech irrigation products, from where they also will export to Chile, Argentina, Colombia and countries of Central America.
It also arrived to Peru last year, Proficol Company, which represents Makhteshim Agan Industries (MAI) from Israel as majority shareholder and, that is the main world manufacturer and distributor of branded off-patent products for the protection of crops and non agricultural areas.
The Olmos Project in north Peru, is the most ambitious of the current seven big irrigation related constructions that are turning the strips of the valleys from the desert of the Peruvian coast into profitable and productive fields. 20 Km measures the tunnel that will carry the water to Olmos field and that is estimated that will irrigate 43,500 hectares of land since 2014 and, that also will create 40,000 new direct jobs.
Likewise, by October this year, the construction of the special irrigation project Chinecas, in the Peruvian Central Coast, will be called for a bid and it should be completely granted to a private entity under the Public-private partnership method. The construction will demand an investment of about US$ 500 millions to irrigate 33000 hectares.
Finally, we have the recent launch of the III stage of the important project Chavimochic, in the north of Peru as well. (Find more details about it in the section "Investment Portfolio").
Environmental - Water
The New York Times recently reviewed some of the main challenges that Peru currently face for the country's environmental and water management; for example, how the global warming, melted during the last 25 years, the most important area of glaciers in the tropical region, Quelccaya in the Peruvian eastern Andes.
It also remarked that Lima, being the biggest city in a desert in the world after Cairo, has 1.9 millions inhabitants of the 9 millions of the city, that lack drinking water and sanitary sewer, and that the problem will become more acute if the environmental problems continue. Lima nowadays represents 1/3 of Peru's population and 50% of the national GDP, therefore the sustained growth in demand for public services is evident.
Recently as well, the Canadian Prime Minister Stephen Harper, who met with Peru’s President Ollanta Humala in his first state visit to Peru, has pledged to provide support to the country in developing its natural resources. Canadian companies have a strong presence in Peru, particularly in its mining sector, that currently demands major water treatment considerations.
Energy and renewable energy
Peru has over 1.2 millions square kilometres of total area, with many isolated communities along the country´s diverse geography, that urgently aim for independent sources of renewable energy. In this sense, Peru rises as the first country in the development of photovoltaic power in South America with a generation of about 100 megawatts with this technology. The second South American country to use the photovoltaic technology don't generate more than 18 or 19 Mw.
Furthermore, Peru is ranked in the position 15 of 105 economies evaluated in “The Global Energy Architecture Performance Index Report 2013” and, in the key parameter that considers “the energy systems that contribute to the economic growth”, Peru is ranked in the first position. It is indicated, in that report as well, that Peru and Colombia have reformed their energy markets and have take advantage of their natural resources supply to lead their growth.
Finally, it is also important to consider that Peru still needs to add 500 megawatts in electrical generation capacity a year to avoid shortages, especially in its vast mining sector. During the Reuters Latin American Investment Summit this May, the Peruvian Minister of Energy indicated that "very soon it will be announced a new package of concessions: 1,000 megawatts for hydro-electric, 300 megawatts for renewable energy and 800 megawatts for dual (gas-diesel) plants" .