Launched in September 2009, Phase 2 of the PRA Project aims at contributing to the development of Peru’s Sierra and Selva in partnership with private and public entities.
Phase 1 of the PRA Project showed that the market’s potential for revenue and job creation makes it a powerful ally in the fight against poverty. In addition, the successful partnership with Compañía de Minas Buenaventura and Compañía Minera Antamina proved that the private sector can play a significant role in this strategy.
In 2002, ESC Huancavelica was launched thanks to the initiative of Roque Benavides, Chairman of Compañía de Minas Buenaventura. In 2007, a partnership was established between Compañía Minera Antamina, USAID, and Sierra Exportadora to open a new ESC in Ancash. In November 2008, the Clinton-Giustra Sustainable Growth Initiative (CGSGI) signed a cooperation agreement with Fondo Minero Antamina to keep ESC Ancash running and expand its operations.
In Phase 2 of the PRA, USAID has renewed its strategic partnership with Antamina, CGSGI, and Buenaventura; and new private partners have enrolled in USAID’s poverty reduction initiative.
As of September 2010, USAID has leveraged approximately US$4.2 million from eight private partners. Seven ESCs have thus been co-financed: ESC Huancavelica with Compañía de Minas Buenaventura; ESC Ancash with Compañía Minera Antamina, CDSGI, and Minera Barrick Misquichilca; ESCs Cusco and Madre de Dios with Odebrecht Ingeniería y Construcción; ESC Puno with MINSUR; ESC Sierra Norte de Lima-Huánuco with Compañía de Minas Buenaventura, Minera Los Quenuales, and Raura; and ESC Arequipa with Compañía de Minas Buenaventura.
Lima’s Regional Government and the Sierra Exportadora Program have also become USAID’s partners in Phase 2 of the PRA.
Minera Barrick Misquichilca and Compañía Minera Poderosa have committed to co-finance an eighth ESC in La Libertad. Barrick, Poderosa, and USAID will sign the Memorandum of Understanding in December 2010. The financing leveraged from these two partners amounts to US$5.1 million, 28% above the US$4 million established for the Project’s five-year lifetime.