Peru - Recent Economic Development in Infrastructure : Volume 2. Investing in Infrastructure as an Engine for Growth - Spending More, Faster, and Spending Better
This report provided the Government ofPeru with a comprehensive strategic assessment of three keyinfrastructure sectors: water/sanitation, transport andelectricity, and to propose selected recommendations on howthe Government could improve the performance of thesesectors. Peru's public expenditure framework shows somerigidities, a number of which were introduced when fiscalresources were scarce or, more recently, because of concernsabout a possible risk of inflation. The implementation ofthe stimulus package has required a laborious transition toremove bottlenecks to faster public spending, sometimes atthe risk of affecting the mechanisms that help ensure thequality of public expenditures. The Peruvian authoritieshave been able to accelerate public investments ininfrastructure but little thinking has been dedicated toimproving the efficiency and effectiveness of suchinvestments.The report concludes that Peru should focuson:prioritizing infrastructure investments throughimproved planning, promoting efficiency in infrastructuredelivery, enhancing sub-national governments' capacitywith respect to infrastructure, and leveraging theparticipation of the private sector.