A study on infrastructure and economic corridors, financed by USAID and designed by the PRA, was completed in September 2001. The study focused on the quantification of economic losses in economic corridors arising from deficiencies in the transport infrastructure. A methodology designed by Ms. Roxana Barrantes, PhD is used to assess the economic impact of roads, identify potential benefits, and provide guidance for resource allocation. The study established that, of 24 projects assessed, not implementing the rehabilitation of the Fernando Belaúnde Terry Highway (Tarapoto-Aucayacu stretch) created the highest losses ($254 million over 7 years).
In the framework of its policy dialogue component, the PRA promoted meetings to inform Congress members and authorities about the study’s results. It was argued that this and other important projects were not implemented due to lack of public resources and legal limits on borrowing.
In view of this situation, USAID asked Chemonics International to promote Private-Public Partnerships (PPPs) in the Economic Corridors under the PRA to implement infrastructure works with financial and managerial resources from the private sector. The Economic Corridors can thus benefit from a new component focused on promoting the construction, rehabilitation, operation, and maintenance of infrastructure projects to ensure sustainability and basic services for productive activities. The program will concentrate on transport, electricity, and irrigation infrastructure. For each one of these sectors, activities will be developed in two stages:
a) Assessment of the sector to identify and select projects and use PPP arrangements to resolve institutional, legal, technical, and financial limitations.
b) A transaction’s life cycle comprises the design and implementation stages, from the selection of the best PPP arrangement to the subscription of the contract.
More information on these activities can be found at:
This component does not exist in Phase 2 of the PRA.