Peru Infrastructure Association AFIN Sees El Niño Threat as an Opportunity for Governance Reform
핵심 요약
- AFIN, led by its new president Juan Pacheco, presented infrastructure recommendations to the Keiko Fujimori government.
- Fragmentation of authority (atomización) and bureaucracy in management make it difficult to respond to the El Niño crisis.
- Public-Private Partnerships (PPP) are proposed as the most suitable way to finance projects due to the shrinking fiscal space.
- More than 100 infrastructure projects have been prioritized in the government's plan.
숫자로 보기
The Association for the Development of National Infrastructure in Peru (AFIN), led by its new president Juan Pacheco, evaluated infrastructure strategies prior to the transition to the Keiko Fujimori government. Pacheco advises the new administration, which will face a dual threat of a shrinking fiscal space and the approaching El Niño weather event, to implement Public-Private Partnerships (PPP).
According to the AFIN president, urgent measures must be taken against the devastation El Niño will cause, and this process presents a critical opportunity to fix the fragmented infrastructure governance in the country. The division of authority and responsibilities among different institutions hinders intervention during crises, slowing down bureaucratic processes.
Noting that the Fujimori government has brought more than 100 infrastructure projects to the agenda but that not all projects can be started simultaneously due to limited financial resources, Pacheco emphasized that transferring financial risk to the private sector is the most logical path. The association stated that the private sector is ready to invest in Peru, arguing that in the current narrow fiscal space, the public-private partnership model is much more advantageous compared to public investment.
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자주 묻는 질문
- Who became the new president of AFIN and what is their demand from the new government?
- Juan Pacheco became the new president of AFIN. Pacheco demands that the Keiko Fujimori government focus on Public-Private Partnerships (PPP) to accelerate infrastructure investments and resolve governance issues.
- How does the El Niño event affect infrastructure management?
- While El Niño natural disasters require urgent infrastructure interventions, fragmented bureaucracy and confused authority lead to delays in these interventions and an increase in damages.
- How will infrastructure projects be financed despite the shrinking fiscal space?
- AFIN proposes the use of Public-Private Partnerships (PPP), which transfer the financial risk to the private sector, to overcome the state's insufficient fiscal space.
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