Infrastructure market in Peru

Peru is a strategic partner for Canada in the Americas. The 2009 Canada-Peru Free Trade Agreement (FTA) unlocked significant commercial opportunities, leading to a record bilateral trade of CAD 7.7 billion in 2024. Peru is Canada’s second-largest bilateral trading partner and third-largest destination for Canadian direct investment in South and Central America. Meanwhile, Canada is Peru's third most important export destination worldwide.

Peru has a large infrastructure gap (around CAD 142 billion), creating significant opportunities for Canadian firms. There are many other factors that encourage Canadian investors to enter the country, such as:

Key opportunities for Canadian infrastructure companies in Peru

Peru plans to award several public-private partnership (P3) projects in the short term, including:

  • Trujillo Wastewater Treatment Plant (USD 425 million, expected award in 2025)
  • Choquequirao Cable Cars (USD 261 million, expected award 2025)
  • Chimbote Port (USD 273 million, expected award in 2025)
  • Group 3 of electric Projects (USD 137 million, expected award 2025)
  • Seven healthcare P3 projects (USD 2 billion, expected award in 2025 to 2026
  • Headworks for the provision of water in Lima (USD 480 million, expected award in 2026)
  • Third group of regional airports (USD 220 million, expected award in 2026)

Industry highlights

CAD 1.6 billion in Canadian exports to Peru in 2024. 

CAD 15.6 billion in Canadian FDI in Peru in 2024.

Fifth in Latin America on the Infrascope ranking for P3 development. 

CAD 22 billion in the P3 pipeline for 2025-2026. 

Additionally, Peru has been using government-to-government (G2G) contracting to deploy major infrastructure since 2019 (PanAm Games). This has helped speed up management procedures while boosting innovation and knowledge transfer to the Peruvian government. Canada signed its first G2G project in 2024 when Peru awarded Canada the “Chavimochic Stage III” irrigation project. Given the importance of this project to the Peruvian economy and the agricultural development of northern Peru, there are strong expectations that the country will continue collaborating with Canada.

Another notable mechanism for infrastructure development in Peru is the Works-for-Taxes modality. Through this mechanism, private companies advance the payment of their income tax to finance and complete prioritized public investment projects. Once the project is completed (or progress is made), the Peruvian government returns the invested amount to the private company or consortium through certificates that can be used to pay income tax (tax credit).

Notable challenges for Canadian infrastructure companies in Peru

  • Political uncertainty with an upcoming national election in April 2026
  • Lack of capacities among the public sector to execute 100% of their investment budget
  • High turnover in key positions within the public sector
  • Complex bidding process with the public sector, except for P3 projects and G2G contracting

Peruvian business landscape

Since January 2025, ProInversión, the Peruvian national P3 agency, has advanced multiple infrastructure initiatives in Peru. These include seven major P3 projects worth over USD 2.8 billion and 310 Works-for-Taxes projects. In August 2025, the Peruvian Congress approved a reform of the P3 legal framework. Under the new law, ProInversión will not only advise on and promote projects, but will also execute them on behalf of the State, serving as the private sector’s counterpart (grantor/owner). Peru expects this reform to be key for closing gaps in infrastructure and services.

 For Canadian companies, working with ProInversión as a technical, financial, or legal advisor offers a low-risk way to learn how to do business in Peru and to better understand its P3 system. With Canada’s strong track record in developing world-class P3 projects, Peruvian authorities view Canadian firms as industry leaders and would like to see them enter P3 tenders as special purpose vehicles (SPVs).

Summary

According to the latest Infrascope report (EIU and IDB), Peru ranks fifth out of 26 countries in Latin America for P3 development. The country stands out for having the most comprehensive regulatory framework in the region for project preparation and sustainability. Peru has a solid ecosystem for P3 development, with a well-established regulatory framework and broad institutional support. Peru has been modernizing its framework for P3, actively seeking to improve the quality of new projects by hiring international financial, technical and legal advisors. 

In addition, the government-to-government (G2G) modality presents an interesting opportunity for Canadian companies in participating in large infrastructure projects, with Canada having secured a major G2G irrigation project in 2024.

Peru is also one of the most attractive markets in South America for private sector investment, due to: 

  • the relative openness of its capital markets
  • its history of strong economic growth (3.8% GDP average growth in 2010 to 2024, excluding 2020 and 2021)
  • price stability (one of the lowest inflation rates in Latin America, with more than 25 consecutive years of single-digit inflation, averaging 3.1% in 2000-2024) 

For more information on Infrastructure in the Peruvian market, contact Félix Jiménez Cieza (felix.jimenezcieza@international.gc.ca), Trade Commissioner for the infrastructure and transportation sectors, in Peru.

Additional Information

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