THIS REPORT CONTAINS ASSESSMENTS OF COMMODITY AND TRADE ISSUES MADE BY USDA STAFF AND NOT NECESSARILY STATEMENTS OF OFFICIAL U.S. GOVERNMENT POLICY
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The Government of Peru recently approved a reconstruction plan called “Reconstruction with Changes”
for S/. 25,655 million soles or $7.8 billion dollars. According to this plan, the 13 regions negatively impacted by the Coastal Niño induced flooding and landslides in Peru will receive reconstruction assistance. This proposed plan is expected to positively impact U.S. exports of wood and wood products to Peru. Exports of these products totaled almost $10 million in 2016.
FAS Lima staff Kirsten Luxbacher Wood Products
Trade Policy Monitoring
Reconstruction Time for Peru after Severe Coastal Niño
LimaPeru
9/22/2017 Public
General Information:
As part of its plan to rebuild after the Coastal Niño induced flooding and landslides that impacted many parts of Peru in early 2017, the Peruvian Cabinet approved by Supreme Decree 091-2017-PCM a reconstruction plan called ¨Reconstruction with Changes¨ published on September 12, 2017. The approved budget is S/. 25,655 million soles or $7.8 billion dollars. The objective is to rebuild and improve infrastructure in affected areas. The Plan is four percent of Peru´s total GDP and will promote the creation of 150,000 jobs within Peru in 2018. The largest portion of the budget, 77 percent, will go towards the replacement of damaged infrastructure, 21 percent will go towards prevention works and urban planning, and two percent towards capacity building. Piura, one of the hardest hit regions, will receive 30 percent of total allocated resources.
Table 1. Type of infrastructure for reconstruction & quantity
48,731 Houses
7,470 Km in roads
2,638 Km of highways
1,609 Schools
192 Bridges
154 Health institutions
Prevention works and urban planning will focus on cleaning rivers and streams bottoms. The works will cover 18 rivers and build storm drains in four cities.
The ¨Reconstruction with Changes¨ plan is based on Law 30,556 published on April 28, 2017. The Law approved provisions of extraordinary character for the interventions of the national government and provides the creation of an Authority for the Reconstruction with Changes. The Authority board is composed by four ministers: Economy and Finance, Transportation and Communications, Housing, Construction and Sanitation, and Agriculture and Irrigation. The authority will have a term of three years, and may be extended for a period of one year.
Between April and September, the Authority held several coordination meetings at the local and regional level. Within that time frame, the allocated budget increased by ten percent and the Authority collected and validated the urgent needs of the 13 regions impacted by flooding.
It is expected that implementation of the Plan will begin in the near future. FAS Lima sees export opportunities for the use of U.S. wood and wood products in concrete forming projects linked to the reconstruction. Wood frame housing is not common in Peru, where there is a strong preference for concrete construction despite the cheaper costs and advantages wood frame construction would offer in this earthquake prone country. This being said, in the long term, FAS Lima foresees opportunities for wood frame construction and increased export opportunities in this sector as several Peruvian
institutions are increasingly becoming interested in the sector and are eager to learn from U.S. expertise and adapt it to local conditions.
