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ProInversión completes PPP roadshow to plug Peru's infrastructure gap | World Finance - YouTube
Channel: World Finance Videos
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World Finance: Alberto Ñecco Tello is executive
director of ProInversión, Peru's private
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investment promotion agency. It recently completed
an international roadshow, promoting a portfolio
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of 50 public private partnership projects,
to help plug Peru's $160bn infrastructure gap.
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How do you work with international partners to make investing in Peru a simple and efficient process?
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Alberto Ñecco Tello: We work very closely
with investors; within the agency we have
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a whole division that is entirely in charge
of investor outreach and investor relations.
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We are the point of contact – and I would
even say the point of entrance for foreign
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investors that come into the country. We have
a very friendly and supportive legal framework
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for investors to come in, and we have devoted
professionals that develop a client relationship
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role with the investors, and guide investors
in their way into the country.
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Mostly investors for PPP or infrastructure
projects, but also investors in general, who
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just want to bring capital to Peru.
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World Finance: What makes Peru an attractive
and secure destination for international investment?
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Alberto Ñecco Tello: Peru has very solid
foundations for investments; one of our main
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strengths is our macro-economic foundations.
For the last 25 years we have been able to
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keep high growth numbers at low inflation
rates, which is hardly seen around the world.
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We have been blessed in that way!
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And that macro-economic foundation is one
of the best in Latin America, in the region.
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Which should provide you with enough certainty
regarding returns.
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And in terms of the law – the legislation
or the regulatory framework – for this,
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it is very important to highlight that according
to the constitution of Peru, local and foreign
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investments must be treated equally. So there
is no discriminatory treatment between the two.
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Also, there are no capital controls or regulation
regarding inflow or outflow of capital. So
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it's a very friendly environment, and it's
a very open economy for foreign investors.
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World Finance: What range of investment horizons
are in your portfolio, and – you mentioned
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returns – what kind of returns can investors
expect?
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Alberto Ñecco Tello: Well, since our portfolio
is mostly PPP projects, our horizons are mostly
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in the range of 20-30 year contracts. And
in terms of return, they are usually market
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returns. I could not really pin a number,
because it will depend on, you know: the industry,
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how regulated it is, the amount of competition.
And financial models are kind of proprietary
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for each one of the bidders. But I would say
they must be pretty decent, because we have
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increasing competition for each one of our
projects!
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World Finance: What other questions have you
been addressing on your roadshow? What are
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the top three things that investors want to
know?
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Alberto Ñecco Tello: Well, investors are
usually concerned about political risk. And
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for somebody that does not know the country,
it is a fair concern.
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It's important to highlight that for the last
25 years, regardless of the ruling party,
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we have maintained a very stable and sound
macroeconomic policy and economic policy.
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An open economy, a liberal economy, market-oriented.
And in that sense, I guess it's just about
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getting to know the political risk, and getting
to know the country.
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There are also questions around what kind
of portfolio do we bring to the table? And
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I think that's very interesting, because Peru
has one of the longest and oldest PPP programmes
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in Latin America – and one of the broadest.
I mean, we cover all sectors of the economy.
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We work in PPPs for transport, education,
health, irrigation, and we even do mining
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concessions. So we have a very wide portfolio
of investments to offer, and I guess – that
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should also be very appealing for investment
funds or investors looking for diversification
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in their portfolio.
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And I would lastly say, there is always a
question around the capacity of the government
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to deal with private investors and private
counterparties. And as I just said, Peru has
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a very long-standing PPP tradition, so there
are a lot of PPPs already working in Peru.
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Spanish companies have been present for quite
a long time now, and they are active and they
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are already operating projects in highways
infrastructure, water and sanitation, etc.
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So although that's an ongoing concern, and
I think the government and the agency are
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still working on continuously strengthening
our capacity to deal with private counterparts;
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we have the experience, and we have the work
done. So we are pretty much prepared to offer
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a stable and hopefully fruitful relationship.
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World Finance: Alberto, thank you very much.
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Alberto Ñecco Tello: Thank you.
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We're running our own roadshow with ProInversión:
on European CEO you can learn more about the
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projects in the agency's portfolio, while
on The New Economy we're discussing ProInversión's
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sustainability. Go to proinversion.gob.pe to
find out even more. Thanks for watching, and
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please subscribe.
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