peru: investment opportunities march 2011 sugar cane (1st) artichokes asparagus, olives and (3rd)...

Peru: Investment opportunities March 2011

Sugar cane (1st) artichokes Asparagus, olives and (3rd) Grapes (5th) Seasonal windows in the most important markets. Projections expect that the 90,000 ha currently used for agro exports to double as consequence of large irrigation projects in portfolio. Over US$ 2,5 billion in exports of fresh and processed products to over 113 countries. Products with high export value. PER: UN CAMPO FERTIL PARA SUS FOR YOUR PERU: FERTILE GROUND INVERSIONES INVESTMENT AGRIBUSINESS SECTOR Natural greenhouse. The best agricultural yields in the world.

Agricultural Exports (US$ million) AGRIBUSINESS SECTOR Rest Prepared asparagus Fresh asparagus Source: BCRP, FAO, ADEX DataTrade. Non-decaffeinated coffee Fresh grapes France United Kingdom Agricultural Sector Exports per destination market (2009) Germany United States Spain Netherlands

FISHERIES SECTOR Extensive fishing coast (3,080 km) and water mirrors that offer adequate conditions for the development of marine and continental aquaculture. first producer of fishmeal and fish oil in the world. Distribution of Peruvian fisheries products to over 100 countries. product Trend towards diversification.

Fisheries Exports (US$ million) FISHERIES SECTOR 1,131 1,123 1,056 1,026 2,200 1,626 1,768 1,958 2,413 2,200 2,000 1,500 3,000 2,500 CHI CHD Exportaciones Pesqueras Fisheries Sector Exports per destination market (2009) 1,000 500 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Source: BCRP, FAO, ADEX DataTrade. GERMANY OTHER UNITED KINGDOM BELGIUM JAPAN Fisheries DENMARK CANADA TURKEY

MINING SECTOR Polymetallic country, third in gold, silver, copper and zinc reserves. Only 20% of territory with mining potential has been explored. First silver world producer. In Latin America: 1 st gold, zinc, silver, tin and lead producer. 2 nd copper and molybdenum producer. The investment in the sector exceeded US$ 14 billion between years 1999 and 2009 and it is projected an investment of US$ 37 billion in the coming years. Peru is one of the few countries with non metallic minerals deposits.

Mining Exports (US$ million) MINING SECTOR Mining Sector Exports per destination market (2009) Copper Lead Tin Gold Molybdenum Silver Iron OTHER Other SWITZERLAND Source: Adex DataTrade, BCRP and MINEM JAPAN KOREA ITALYGERMANY BRAZIL SPAIN

TEXTILE SECTOR Recognized quality of Peruvian pima cotton, considered one of the most demanded and finest fiber in the world. First world producer of the finest South American camelids fibers: alpaca and vicuna. Long textile tradition, favors workforce professionalization and training. International recognition as full package supplier of the best brands in the world. Sound trend towards exports growth, reaching its maximum level in 2008: US$ 2 billion.

Source: Prompex Textile Apparel Exports (US$ million) Apparel exports main destination countries (2009) TEXTILE SECTOR UNITED STATES OTHER ITALY GERMANY FRANCE UNITED KINGDOM 2,006 1,495 0 1,500 1,000 500 2,000 2,500 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 APPARELTEXTILE

FORESTRY SECTOR Presence of great biological diversity and highly valued timber. Development of hard tropical timber in the forest and soft timber in the highlands of the country. 2nd country with the largest natural forest area in Latin America. 78,8 million ha of natural forests, 10 million ha for reforestation and other areas for afforestation (plantations). Forestry products exports grew to US$ 296 million in 2009. in Investment opportunities industrial timber complexes.

Timber exports (US$ million) Exports per country, 2009 FORESTRY SECTOR 250 200 150 Dominican Republic United Italy Canada Others Hong kong States Mexico 100 50 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Source: Adex DataTrade

Significant investment in hotelsof international recongnition. Tourism attractions yet to be explored: North Eastern tourism circuit: Kuelap, Sipan, Chan Chan, among others. PERU: TOURIST DESTINATION OF LOCAL AND INTERNATIONAL INVESTMENT TOURISM SECTOR Important cultural destination due to Inca and Pre Inca cultures archaeological sites. Machu Picchu was chosen as one of the new 7 Wonders Worldwide. Diversity of natural landscapes. Destination for bird and orchid watchers. Lima is the gastronomic capital of Latin America. Peru has the largest number of gastronomy schools in the world.

Tourist Entry (thousands) Tourists arrival per origin region (2009) TOURISM SECTOR 998 1070 1349 1570 1720 1916 2057 2139 1000 1500 2000 2500 500 0 2002 2003 2004 2005 2006 2007 2008 2009 Source: MINCETUR. Europe South America North America

Construction GDP annual average growth for 2010 is 14.4%. Housing deficit affects 25% of households. Lima holds 25% of total deficit, and 48% of quantitative deficit. There are several programs for housing financing, based on households socio economic conditions and income level: Techo propio, Fondo Mi Vivienda and Commercial Banking. Mortgage credits grew an average of 25% in the last 4 years; construction credits grew 33%. REAL ESTATE SECTOR

DEVELOPMENT OF THE REAL STATE SECTOR Source: Ministry of Housing 2,221 2,742 3,697 4,357 248 443 621 584 0 1,000 500 3,000 2,500 2,000 1,500 4,000 3,500 4,500 2006200720082009 Mortgage credits and construction credits (US$ million) 5,000 Housing deficit (2009) Qualitative deficit 1,577,438 80% Quantitative deficit 389,712 20% Mortgage HipotecariosCrditos credits Crditos Construction Construccin para credits

Why invest in Peru?

1. Internationally acknowledged macroeconomic stability WHY INVEST IN PERU? 2. Friendly investment environment 3. Open trade and market access policy

1. MACROECONOMIC STABILITY Peru will continue leading regional growth. Source: Central Reserve Bank of Peru. * Projections Source: IMF Gross Domestic Product (Annual % variation) 180,000 160,000 140,000 120,000 100,000 80,000 60,000 40,000 20,000 0 Gross Domestic Product (US$ Million ) 200,000 7.5 5.0 8.8 10.0 Peru Colombia Chile Brasil Bolivia Argentina 0.9 0.8 1.5 0.2 0.9 0.0 Projection 2010 4.7 5.0 4.0 3.4 5.0 2009

Private investment (% GDP) Balance of Trade (US$ Million) 1. MACROECONOMIC STABILITY Source : Central Reserve Bank of Peru * Projections Source : Central Reserve Bank of Peru * Projections 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 5,000 Total exportsTotal importsBalance of Trade 25.0 20.0 15.0 10.0 5.0 0.0

1. MACROECONOMIC STABILITY 50.0 45.0 40.0 35.0 30.0 25.0 20.0 15.0 10.0 5.0 0.0 Central government tax revenues (US$ GDP) 18.0 16.0 14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0 Source: Central Reserve Bank of Peru * Projections Public Debt (US$ GDP) Source: Central Reserve Bank of Peru * Projections

1. MACROECONOMIC STABILITY Source: IFM * Projections Inflation in Latin America (Accrued) Source: Latin Focus Consensus Forecast * Projections Exchange Rate in Latin America (Index 2000=100) 200.0 190.0 180.0 170.0 160.0 150.0 140.0 130.0 120.0 110.0 100.0 90.0 80.0 70.0 PERUBRAZILCHILECOLOMBIA 45.0 40.0 35.0 30.0 25.0 20.0 15.0 10.0 5.0 0.0 5.0 Argentina Chile Bolivia Colombia Brazil Peru

CountryS&PFitchMoodys ChileA+AA1 Mexico BBB Baa1 PeruBBB Baa3 BrazilBBB Baa3 ColombiaBB+ Ba1 VenezuelaBB BB+B2 ArgentinaBRDB3 BoliviaBBB2 EcuadorCCC+CCCCaa3 1. MACROECONOMIC STABILITY Investment grade Latin America benchmarking Source : Standard & Poor`s, Fitch Ratings y Moody s Net International Reserves (US$ Million) 50,000 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 Source : Central Reserve Bank of Peru *Projection

Peru offers a favorable legal framework for foreign investment... Legal Framework: Constitutional provisions, Law for the Promotion of Foreign Investment, Legislative Decree N 662, Framework Law for Private Investment Growth, Legislative Decree N 757, Law for the Promotion of Private Investment in Infrastructure and Public Service Works, Approved by Supreme Decree N 059 96 PCM 2. FRIENDLY INVESTMENT ENVIRONMENT Non discriminatory treatment. Peru offers to foreign investor the same treatment as local investors. Unrestrictive access to most economic sectors * Free transfer of capital Free competition. Guarantee for Private Property Freedom to purchase stocks from locals. Freedom to access internal and external credit. Freedom to pay royalties. Network of investments agreements and member of ICSID and MIGA Peru is adherent to the OECD Declaration on International Investment and Multinational Enterprises. *Investments that require authorization: Located within 50 km in the border line and those destined to arms, ammunitions and explosive. Likewise, a principal local partner for investments in radio and television as well as in air transport is required.

INVESTORS Stability of the right to non discriminatory treatment. Stability of the Income tax rules applicable to dividends. Stability to use freely the most favorable exchange rate available in the market. Stability of the free availability and remittance of foreign currency, dividends and royalties regime. Requirement : Minimum investment of US$ 5 MM in any economic sectors. US$ 10 MM for hydrocarbon and mining sectors. Validity: 10 years. Concessions: Term according to the contract s life (Max. 60 years). RECEIVING COMPANY Stability of the recruitment regimes. Stability of the regimes for the promotion of exports. Stability of the Income Tax Regime 2. FRIENDLY INVESTMENT ENVIRONMENT LEGAL STABILITY AGREEMENTS Peruvian Government guarantees through this regime

TaxApplicable Rate INCOME Corporate profits30% Agriculture, agribusiness and aquaculture 15% Dividends4.10% Royalties30% Interest rate on loans from abroad 4.99% Value Added Tax (VAT) 19% Financial Transactions Tax 0.05% throughout 2011 Temporary to net assets, applicable to the excess of S/. 1 000 000 * 0.40% A steady tax regime: 2. FRIENDLY INVESTMENT ENVIRONMENT *Tax applicable up to 2009. The pertaining rate shall be paid in 2010.

Special Regime of VAT Anticipated Recovery BENEFITS Granting the return of the Value Added Tax during the pre productive stage of the project (minimum 2 year term). Applicable to all sectors of economic activity. The project can be divided into stages, phases, or similar levels. For agricultural activity it is not necessary to meet a minimum investment amount. For other activities the minimum investment amount is US$ 5 million. 2. FRIENDLY INVESTMENT ENVIRONMENT

TARIFF LEVELS ADVALOREM + SURCHARGES TARIFF LINES NUMBERPROPORTION (%) 0 %4,09756 6 %2,48934 13 %79211 Total7,378100,0 EFFECTIVE AVERAGE TARIFF3.4 STANDARD DEVIATION4.1 Reduced tariff structure with low tariff dispersion. Source: MINCETUR Ministry of Foreign Trade and Tourism 2. FRIENDLY INVESTMENT ENVIRONMENT

Position 1 2 Country Mexico Peru 3434 Colombia Chile 5Puerto Rico 172 Argentina 115 Uruguay 124 127 Bolivia 149 Brazil Surinam 161 Guyana 100 Peru 36 Chile 43 Venezuela Colombia 39 Ecuador 130 2. FRIENDLY INVESTMENT ENVIRONMENT Recognition of a favorable Investment environment Due to its investment climate Peru is the most attractive country in the Region Doing Bussiness 2011 Peru ranks second in the region as an atractive country for investment.

Source: World Economic Forum, Benchmarking National Attractiveness for Private Investment in LA Infrastructure. 2007 Position 1 2 3 4 5 6 7 8 9 10 11 12 Country Peru Colombia Chile Uruguay El Salvador Bolivia Brazil Dominic. Rep. Mexico Guatemala Venezuela Argentina Points 5.8 5.6 5.5 4.8 4.6 4.5 4.2 4.1 4.0 3.2 3.1 Peru is first in the region for World Economic Forum *Economc climate index Source: Foundation of Getulio Vargas de Brasil 2009. Position 1 2 3 4 5 6 7 8 9 10 11 Country Peru Brazil Chile Paraguay Mxico Uruguay Colombia Ecuador Bolivia Argentina Venezuela ICE* 5.0 4.6 4.3 3.9 3.7 3.3 3.2 2.6 2.4 2.0 1.6 Peru ranks first in the ranking of business climate in Latin America Peru tops a global macro government readiness for private prudential indicator ranking investment in infrastructure Position 1 6 8 9 10 11 17 35 39 41 51 Country Peru China Switzerland France Netherlands Mexico Argentina Brazil Chile Colombia Venezuela Points 6.53 5.82 5.70 5.49 5.48 5.43 5.30 4.78 4.66 5.51 3.18 Source: World Economic Forum, The Financial Development Report 2009. Getulio Vargas Foundation 2. FRIENDLY INVESTMENT ENVIRONMENT Recognition of a Favorable Investment climate

2. FRIENDLY INVESTMENT ENVIRONMENT Recognition of a Favorable Investment climate. United Nations Conference on Trade and Development. In 2009, Peru was third in FDI growth. 3.2% 28.1% 40.7% 75.5% Alemania Source: The Economist 2009. The Economist Peru ranks first in the region for best legal and regulatory framework Source: UNCTAD 2009. Peru Mexico Brazil Italia Germany Peru Per Dinamarca Italy Denmark

Canada* United States* Cuba El Salvador Bolivia Chile* Ecuador Australia China* Korea Malaysia Singapore* Thailand Japan Germany Argentina Colombia Paraguay Venezuela Belgium and Luxemburg Denmark Spain Finland France Nederland Italy Norway Portugal United Kingdom Czech Republic Romania Sweden Switzerland 2. FRIENDLY INVESTMENT ENVIRONMENT Investment Agreements Peru has signed Bilateral Investment Treaties (BIT) and Free Trade Agreements that underpin its liberalization policy. * FTA It has also signed double taxation agreements with Brazil, Chile and Canada.

Agreements n forceAgreements soon enter into force 3. PREFERENTIAL ACCESS TO THE MOST IMPORTANT MARKETS An economy working to become globalized and with access to the worlds largest markets and trade blocs. Agreements under negotiations Transpacific Partnership Agreements (Vietnam, Brunei, Darussalam, Australia, Malaysia, New Zeeland, Chile, EEUU, Peru) FTA Central America

PROJECTS IN PROINVERSIONS PORTFOLIO

SECTORN PROJECTSESTIMATED INVESTMENT (US$ MILLION) Airports1379.0 Agriculture4750.0 Energy125,110.0 Penitentiary Facilities117.8 Railways2--- Real Estate3128.3 Ports81,219.6 Sanitation1160.0 Telecommunication3---- Tourism3830.6 Land Transport6--- Capital Markets4--- Mining5--- Total538,595.3 PORTFOLIO PROJECTS FOR 2011 Projects in Proinversions Portfolio 53 projects* Updated: January 27, 2011 33 projects prioritized for 2011

Estimated Investment 379.00 265 350 130 5 Expected date of Award II Q 2011 IV Q 2011 Jul 2011 PORTFOLIO PROJECTS FOR 2011 Sector / Project Airport International Airport of Cusco* Agriculture Chavimochic project phase 1 third stage * Water reinforcement of Pisco River and Seco River Basin * Developed Choclococha Project * Sale of Lands Majes (1,000 Has) * Projects declared of National need and prioritized for 2011.

NEW INTERNATIONAL AIRPORT OF CHINCHERO CUSCO Location: Chinchero District, Urubamba Province, Cusco region. Description: The project comprises the design, construction, financing, administration, operation, maintenance and exploitation of the new international airport of Chinchero Cusco (AICC); and the administration and operation of Alejandro Velasco Astete (AIVA) up to AICC begins operations. Estimated investment: US$ 379 Million (VAT included) Concession term: 30 years Modality: Comprehensive Project Bid Current status: The Tender Documents and contract s second version are published on ProInversions web site. Short listing bidders (Submission of Envelope N1): Up to April 15, 2011. Award date: II Quarter 2011 The Call for Tenders was made

CHAVIMOCHIC PROJECT (1ST PHASE 3RD STAGE) Location: Department of La Libertad Description: Development of the first phase of the third stage of Chavimochic project to assure the watering for permanent farming in the valley and inter valleys areas of Chao, Vir and Moche. The concessionaire must build a reservoir (Palo Redondo) of 150 MMC of capacity to achieve a regular watering in 60, 000 has. This automation system includes a flow and use of groundwater in the Chao, Viru and Moche valleys. The concessionaire will be responsible for the Operation ad Maintenance of the whole system. The regional government of La Libertad is carrying out complementary works. The investment made in the first and second stage border US$ 850 million and currently the regional government is building civil works for US$ 53 Million. Estimated investment: US$ 265 Million (first phase of the third stage) Concession type: Co financed. Current process status: Re evaluation of the project engineering and the cost. Award date: IV Q 2011 TO BE CALLED

Location: Departament of Ica, Province of Pisco. Estimated investment: US$ 350 Million. Concession type: Cofinancing. Current status: Final stage of the feasibility study. Deadline to be Short listed: III Q 2011 Award date: IV Q 2011 WATER REINFORCEMENT OF PISCO RIVER RIO SECO RIVER BASIN POR CONVOCAR TO BE CALLED Description: Collection and regulation of Pisco River water surplus to achieve the water flow stabilization of Pisco valley and the recharge of the ground water source of the intervalley where the Villacuri and Lanchas irrigations are located, in order to permit the sustainability of production activities of Pisco Viejo valley and Villacuri and Lanchas irrigations, which are exclusively irrigated with ground water. Ica

DEVELOPED CHOCLOCOCHA PROJECT Location: Department of Huancavelica, Provinces of Huaytara and Castrovirreyna, Districts of Santa Ana and Pilpichaca. Description : The project comprises the implementation of the regulation system and current connection with the construction of Tambo dam and Ingahuasi collecting water canal of 72 km length; as well as the operation and maintenance of the whole system. The goal of the project is to achieve the water reinforcement of Ica Valley, in order to provide growth and sustainability to the largest agro export center of the country located in said Valley and the operation and maintenance of the whole system. Estimated Investment: US$ 130 million. Concession Type: Co financing Process status: Waiting for the viability from the SNIP. Deadline to be Short listed : III Q 2011 Award Date: IV Q 2011 TO BE CALLED POR CONVOCAR Huancavelica

MAJES I (1000 Ha) LAND SALE Location: Department of Arequipa. Description : Sale of 02 plots of unsuitable lands with the possibility of obtaining rights of use of water resources of up to 13500 m3/ha/year for approximately 500 ha each. The plots are located in the lower area of Pampa de Majes, at Km 890 of the South PanAmerican Highway, between Majes and Siguas valleys. The Award, grants to the respective bidders the right to exercise the Option to Purchase another lot next door from similar extension, on condition to obtain water from Majes irrigation surpluses (valid for up to 03 years). Estimated Investment: US$ 5 million. Modality: Public Auction. Award Date: July 2011 TO BE CALLED POR CONVOCAR Arequipa Proyecto Majes-Siguas

Estimated Investment 900 110 200 100 90 400 200 1500 1300 100 17.8 Expected date of Award 03.24.2011 03.31.2011 04.07.11 III Q 2011 05.05.11 05.19.11 IV Q 2011 05.15.2011 PORTFOLIO PROJECTS 2011 Sector / Project Energy Energy from Hydroelectric Power Stations 500 Mw.* Transmission Line Trujillo Chiclayo 500 KV and associated sub stations* Cold Reserve: 200 MW Plant of Eten (Lambayeque)* Transmission Line Moyobamba Iquitos* Transmission Line Cajamarca Caclic Moyobamba* Supply system of LPG for Lima and Callao* Bayovar oil hub Supply system of LNG for domestic market * Gas pipeline to Trujillo (Natural Gas) * South energy node* Distribution system of natural gas for the center north * Distribution system of natural gas for the South * Penitentiary Facilities Electronic Vigilance Service * Projects declared of National need and prioritized for 2011.

Location: Nationwide. Description: The project comprises the supply of energy and power to the National Interconnected Electric System (SEIN), guaranteed by the construction of new hydroelectric power stations which will begin operations on 2016. Estimated investment (IVA not included): US$ 900 Million. Period of supply contracts: 15 years. Competition factor: Lowest prices for energy. Current Status: The Tender Documents and contract s second draft are published on Proinversions web site. Award date : March 24, 2011. ENERGY FROM HYDROELECTRIC POWER STATIONS 500 Mw. The Call for Tenders was made

Location: La Libertad and Lambayeque Description: Grant in concession the design, financing, building, operation and maintenance of Trujillo Chiclayo 550 Kv transmission line (capacity of 700 MVA, 340 Km. length aprox), aimed to increase the capacity of electric energy transmission towards the northern part of the country. Estimated investment (VAT not included): US$ 110 Million. Concession period: 30 years plus the construction period (30 months approx.) Competition factor:The lowest service total cost. Current Status: The Tender Documents and Contract s first version are published on Proinversions web site. Award date: March 31, 2011 TRUJILLO CHICLAYO 500 KV TRANSMISSION LINE AND ASOCIATED SUB STATIONS The Call for Tender was made

COLD RESERVE (200 MW, 1 DUAL THERMAL PLANT OF SIMPLE CYCLE) Location: Locality of Eten, Region of Lambayeque. Description: Power and energy supply to national grid as a Cold Reserve to cover emergency periods. To guarantee the supply the design, financing, construction, operation and maintenance of a new thermoelectric dual plant (diesel and natural gas) is considered. Located in the locality of Eten Region of Lambayeque (northern Peru) with a capacity of 200 MW. Estimated Investment (VAT not included): US$ 110 Million. Concession period: 20 years + construction period (24 months) Competition factor: Lowest remuneration per power offered. Current Status: The tender documents are published on ProInversions web site. Award date: April 07, 2011. The call for tender was made

Location: Regions of Loreto and San Martn. Description: The Project will grant in concession the design, financing, construction, operation and maintenance of Moyobamba Iquitos 220 kV transmission line, in order to increase the electricity transmission capacity to the western part of the country (regions of Loreto and San Martin) and develop the interconnection of the electricity systems in these regions with the National Grid. Estimated Investment (VAT not included): US$ 200 Millon. Concession Type : Self sustaining. Concession period: 30 years plus the construction period (40 months). Competition factor: The lowest service total cost.. Current Status: Hiring of the technical feasibility study Deadline to be shortlisting: II Q 2011 Awad date: III Q 2011 TRANSMISSION LINE MOYOBAMBA IQUITOS 220 kV TO BE CALLED

Location : Cajamarca, Amazonas and San Martn. Description : To grant in concession the design, finance, construction, operation and maintenance of the Transmission line of Cajamarca Norte Caclic 220 kV of more than 300 km length. The implementation of new sub stations in Caclic (Chachapoyas) and Moyobamba. The expansion of the sub stations Cajamarca Norte. Estimated Investment (VAT not included): US$ 100 Million. Concession period: 30 years plus the construction period (28 months) Competition factor: The lowest service total cost. Current status: The Tender Documents and contract s first draft are published on Proinversions web site. Deadline to submit a short listing request: March 30, 2011 Award date: May 05, 2011 TRANSMISSION LINE CAJAMARCA CACLIC MOYOBAMBA 220 kV The Call for Tender was made

Location: Southern zone of Lima Description: LPG transport system from the producer facilities to Lima province border. The project comprises the construction of: A pipe of 250 km approximately from Pisco to terminal located between Lurin and Conchan. An initial transport of 1,000 tonnes of LPG daily is estimated. A terminal for storage and attention to be placed between Lurin and Conchan. Pumping station, measurement equipment, valve, pig traps and communication equipments. Estimated investment (VAT not included): US$ 90 Million Concession period: 20 years plus the construction period (28 months). Competition factor: The lowest service total cost. Current status: The Tender Documents and the contract s first version are published on Proinversins web site. Deadline to submit a short listing request: March 31, 2011 Award date: May 19, 2011 SUPPLY SYSTEM OF LPG FOR LIMA AND CALLAO The called for tenders was made

BAYOVAR OIL HUB Location: Province of Sechura, Department of Piura. Description: The promotion process comprises the design, financing, construction, operation and maintenance of a liquid loading dock and storage tanks for crude and oil products. The location of these facilities would be in the Bay of Bayovar taking into account its favorable location on the Pacific Coast and its capacity to received large ships Estimated Investment: US $ 400 Million. Deadline to be short listed: III Q 2011 Award date: IV Q 2011 TO BE CALLED

Location: Province of Caete, Department of Lima. Description: The system will allow the use of liquid natural gas and its regasification for emergency periods, using the existing pipeline to transport natural gas when needed. Estimated Investment (Vat is not included): US$ 200 Million. Concession period: 30 years. Competition factor: Lowest service cost. Current status: The financing type to be defined. Deadline to be shortlisted: III Q 2011 Award date: IV Q 2011 SUPPLY SYSTEM OF LNG FOR DOMESTIC MARKET TO BE CALLED

Location: Center Highlands / North Coast Description: The project comprises the design, construction, operation and maintenance of the natural gas transportation system which will allow to supply the cities of Ayacucho, Huancayo, La Oroya, Tarma, Chimbote and Trujillo. Estimated Investment: US$1,500 Million. Concession term: 30 years plus the construction period ( 40 48 months) Competition factor : TheLowestgas transportation service cost. Modality: Comprehensive project bid. Deadline to submit a short listing request: III Q 2011 Award date: IV Q 2011 GAS PIPELINE TO TRUJILLO (NATURAL GAS) TO BE CALLED

SOUTH ENERGY NODE Location: South of Peru. Description: The promotion process comprises the design, financing, construction, operation and maintenance of thermal plants using natural gas from the southern Andean region and operating in combined cycle can generate electricity for export purpose. The power to be installed borders 1,500 MW. Referential investment in generation: US$ 1,300 Million. Current status : The technical studies are being carried out. Deadline to be shortlisted: III Q 2011 Award date: IV Q 2011 TO BE CALLED

Cities to be supplied: Ayacucho, Huancayo, La Oroya, Chimbote and Trujillo. Description: Natural gas distribution system that comprises land transportation of liquid state natural gas from Melchorita plantsouth of Limato the borders of cities to be supplied, re gasifying it at these points, and then supplying natural gas to the final user through gas pipelines. Estimated Investment (VAT not included): US$ 100 Million. Concession type: Self sustaining. Concession period: 30 years. Competition factor: Commitment of larger number of users connected. Current status: The technical studies are being carry out, and the commitment of liquid gas supply between State and Repsol pending to be signed. Deadline to be shortlisted: III Q 2011 Award date: IV Q 2011 SYSTEM GAS DISTRIBUTION SYSTEM FOR THE CENTER NORTH TO BE CALLED

Cities to be supplied: Cusco, Juliaca, Puno, Arequipa, Moquegua and Tacna. Description: Natural gas distribution system that comprises land transportation of liquid state natural gas from Melchorita plantsouth of Limato the borders of cities to be supplied, re gasifying it at these points, and then supplying natural gas to the final user through gas pipelines. Estimated Investment (Vat not included): US$ 100 Million. Concession type: self sustainig. Concession period: 30 years. Competition factor: Commitment of larger number of users connected. Current status: The technical studies are being carry out, and the commitment of liquid gas supply between State and Repsol pending to be signed. Deadline to be shortlisted: III Q 2011 Award date: IV Q 2011 NATURAL GAS DISTRIBUTION SYSTEM FOR THE SOUTH TO BE CALLED

Location: Lima. Description: The project comprises the provision of Personal Electronic Monitoring Service for 2000 processed and /or sentenced of the Judicial District of Lima, North Lima, South Lima and Callao. Estimated Investment (VAT not included): 17.8 Million Competition factor: To be defined Current status: The call for tender was made on December 28, 2010. The tender documents and the contracts second draft are published on ProInversins web site. Deadline to be short listed: Up to April 01, 2011. Award date: 05.15.2011 PERSONAL ELECTRONIC VIGILANCE SERVICE The Call for Tender was made

Estimated Investment To be defined 9.3 119 To be defined 20 800 10.6 To be defined Expected date of Award To be defined 03.25.2011 II Q 2011 To be defined 03.10.11 III Q 2011 To be defined 04.29.2011 PORTFOLIO PROJECTS 2011 Sector / Project Railways Cajamarca Bayovar railway Transcontinental railway Brazil Peru Atlantic Pacific (FETAB) Real Estate Former tourist hotels of Ica, Iquitos, Huaraz, Monterrey and Chimbote Lobitos Beach Consolidated Fund of Retirement Reserve. Tourism El Chaco La Puntilla Lot D tourist project San Lorenzo Island and El Fronton Island * Kuelap Cable car Capital Markets Consorcio Hotelero del Norte * Projects declared of National need and prioritized for 2011.

Estimated investment: US$ 20 million. Modality : Comprehensive project bid Deadline to be shortlisted: February 18, 2011 Award date: March 10, 2011. LOT D CHACO LA PUNTILLA The Call for Tender was made Location: Department of Ica, Province of Pisco, District of Paracas. Description: The project comprises the design, financing, construction and sale of a high standard vacational condominium to be developed in an area of 181,854.33 m2 located in area known as Chaco La Puntilla, district of Paracas.

SAN LORENZO ISLAND EL FRONTON ISLANDS Location: San Lorenzo Island El fronton Island, Constitutional Province of Callao. Description: The project involves the incorporation of San Lorenzo and el Fronton Islands to the urban area of Callao and Metropolitan Lima, by developing an urban project based on zoning that respects cultural and natural heritage located in the Islands. Soil uses, urban and edificatory relevant parameters must be respected as well. In addition, the most suitable solution for access to the Island must be considered. Estimated Investment : US$ 800 Million Modality: Public bid Award date: III Quarter 2011. TO BE CALLED

wharf of handcraft fishing and its service unit. Investment amount: US$119 Million* LOBITOS BEACH TO BE CALLED Location: Region of Piura, Province of Talara, District of Lobitos. Description: Tourist project development in a lot 70 has, with 1.8 Km approximately of land with a sea view front. Tourist complex composed by a group of hotels and vacation rental homes. All those would be served by a local mall. It is considered to keep the Play Lobitos Modality: Comprehensive project bid. Award date: II Quarter 2011. Includes land, urban habilitation and buildings.

Location: The former tourist hotels are located in Chimbote, Iquitos, Huaraz, Monterrey and Ica. Description : The project involves the sale of assets (hotels units) of Former tourist hotels, described as follows: : Estimated Inverstment: US$ 9.3 Million. Modality: Public Bid. FORMER TOURIST HOTELS The call for tenders was made Participation fee: Up to 03.24.2011. Public auction date: 03.25.2011. Comprende el terreno, edificaciones, obras complementarias, equipos, maquinaria e mobiliario. Hotel Chimbote former tourist hotel Iquitos former tourist hotel Huaraz former tourist hotel Monterrey former tourist hotel Ica former tourist hotel Land area 3,867 m2 2,066 m2 29,875 m2 27,765 m2 15,000 m2 Contructed area 5,038 m2 5,028 m2 9,928 m2 3,064 m2 8,127 m2 Base price US$ 1,945 M US$ 1,112 M US$ 3,133 M US$ 696,000 US$ 2,455 M

CONSORCIO HOTELERO DEL NORTE S.A. Location: In the center of Chiclayo city, 10 minutes from the airport. Description : The project implies the sale of 1836,890 shares of Chiclayo hotel, corresponding to 13.12% of the State participation, FONAFE is currently the owner. The land has 8,452 m2 and the building has 7 floors and 129 rooms, served by restaurants, coffee bar, conferences rooms, outside area for social events, business center, spa and a fitness center. Base price: To be defined Modality: Public Bid. Award date: April 29, 2011. TO BE CALLED

Estimated investment 748 44.1 16.07 111 149 To be defined 22.1 129.4 160 To be defined Expected date of Award I Q 2011 II Q 2011 IV Q 2011 III Q 2011 IV Q 2011 To be defined 06.09.2011 06.23.2011 IV Q 2011 PORTFOLIO PROJECTS 2011 Sector / Project Ports North Multipurpose Terminal of Callao* Yurimaguas Port Terminal * Pucallpa Port Terminal General San Martn Port Terminal* San Juan de Marcona Port Terminal * Navigable River Routes, first stage: Yurimaguas Iquitos* Iquitos Port Terminal * Salaverry Port Terminal * Sanitation Desalination seawater plant Aguas de Lima Sur II * Telecommunication Band 10.15 10.30 GHz and 10.5010.65 GHz Information Technology for the development of Candarave Communities Development of Broadband and extension of optical fiber in rural areas * Projects declared of National need and prioritized for 2011.

NORTH MULTIPURPOSE TERMINAL OF CALLAO PORT Location : Port of Callao, 15 km from the city of Lima. Description: To grant in concession the North multipurpose terminal (former docks 1, 2, 3, 4, 5, 7 and 11) of Callao port with the aim of its modernization. The concessionaire must fulfill the minimum service standards and must sign the joint venture contract with ENAPU S.A. among other commitments to be stated in the concession contract. Estimated Investment (VAT included): US$ 748 Million*. Concession Term : Maximum 30 years. Modality: Comprehensive project bid. Self sustaining and onerous. Current status: The contract s final version approved by Committee and the replies to queries made to the Tenders Documents are published on ProInversions web site. Short listing bidders: On March 03, 2011 the short listing results were announced individually to each bidder. Award date: I Q 2011. The Call for Tender was made * Correspond to stage 1- 5

YURIMAGUAS NUEVA REFORMA PORT TERMINAL The Call for Tender was made Location: The new port terminal will be located on the left bank of Huallaga river, locality of Nueva Reforma, 20 kilometers downstream from the current port. Description: The concession comprises the design, construction, financing, maintenance and operation of the new Yurimaguas P.T. Estimated Investment (VAT included): US$ 44.1 Million. Concession term: 30 years. Modality: Co financed. Comprehensive project bid. Current status: The delivery of the contract s final version approved by the ProInversions Steering Council, is scheduled for February 03, 2011. Deadline to submit a short listing request: March 06, 2011. Award date: II Q 2011.

PUCALLPA PORT TERMINAL Location :Ucayali River in Callera district, Coronel Portillo province of Ucayali region. Description: The project comprises the design, construction, partial financing, maintenance and operation of Pucallpa Port Terminal. Estimated investment (VAT is not included): US$ 16.07 Million. Concession term: 15 years but this can be extended up to 30 years. Modality Comprehensive Project Bid. Co financed. Current Status: The Tender Documents and contract s second draft are published on Proinversions web site. To date the feasibility study is being modified. Award date : IV Q 2011. The Call for Tender was made

Location: Ica Region, Pisco province. Description: The project comprises the design, construction, financing, maintenance and operation of General San Martn port terminal. Estimated investment: US$ 111 Million. Concession period: 30 years. Modality: Comprehensive project bid. Current status: The Tender documents and the contract s second draft are published on Proinversions web site. Award date: III Q 2011 GENERAL SAN MARTN PORT TERMINAL The Call for Tender was made

Location: Region of Ica. Description: The project comprises the design, construction, financing, maintenance and operation of a new port terminal. First stage: The construction of a dock serving mineral ores and its equipment is considered. Estimated Investment (VAT not included): US$ 149 Million. Concession term: 30 years. Modality : Under evaluation Current status: Under evaluation. Award : IV Q 2011 SAN JUAN DE MARCONA PORT TERMINAL TO BE CALLED

Location: Huallaga, Maran and Amazonas Rivers. Description: Development of dredging works, rivers information signs, in order to assure the navigability and therefore the traffic in the port terminals of Yurimaguas and Iquitos. Current Status: The feasibility study Upgrading and Maintenance of Navigability Conditions in Ucayali, Huallaga, Maran and Amazonas Rivers is being carried out. Award date: IV Q 2011. NAVIGABLE RIVER ROUTES, FIRST STAGE: YURIMAGUAS IQUITOS RIVER ROUTES TO BE CALLED

IQUITOS PORT TERMINAL Location: Itaya river, 2 km upstream of its intersection with the Amazonas river, in Iquitos city, Maynas province in Loreto department. Description: The project comprises the modernization, partial financing, maintenance and operation of the Iquitos port terminal. Estimated investment (VAT not included): US$ 22.1 Million. Concession term: To be defined, 30 years Maximum. Modality: Co financed. Comprehensive Project Bid Current status: To be called. Award date: IV Q 2011 TO BE CALLED

Estimated investment : US$ 129.4 Million, VAT is not included. Modality: Comprehensive project Bid. Self sustaining. Concession period: Maximum 30 years. Current status: To be called. Award date: Under evaluation. SALAVERRY PORT TERMINAL TO BE CALLED Location: La Libertad Region Trujillo province. Description: The project comprises the design, construction, financing, maintenance and operation of the port terminal.

SEAWATER DESALINATION PLANT AGUAS DE LIMA SUR II Location: District of the southern Lima Description: The project comprises the design, financing, building, operation and maintenance of a seawater desalination plant and a storage system and main supply of drinkable water. The project comprises: Seawater desalination plant with a capacity of 100,000 m3/day 60 Km. main distribution pipeline of water 7 new tanks and interconnections with the existing tanks Concesion term: 23 years Estimated Investment( VAT not included): US$ 160 Million. Competition factor: Lowest price per cubic meter of desalinated water provided. Current status: The deadline to submit an expression of interest from third parties is April 08, 2011 Award date : To be defined. The call for tenders POR CONVOCAR was made

Location: In the districts of Camilaca, Cairani, Huanuara, Candarave, Quilahuani and Curibaya, all of them in the Province of Candarave, Region of Tacna. Description: The goal of the project is to increase the information technology and communication in 24 towns located on the Province of Cadarave, Tacna. The services to be requested are: Fixed telephony : 8 towns benefited Public telephony: 23 localities benefited. Internet booth: 23 localities benefited Internet at schools: 22 localities benefited. Estimated Investment: To be defined. Concession type: Co-financed. It will have a non refundable financing from FITEL. Current status : Tender Documents are being elaborated. Award date: 06.23.2011 TO BE CALLED INFORMATION TECHNOLOGY FOR THE DEVELOPMENT OF CANDARAVE COMMUNITIES

DEVELOPMENT OF THE BROADBAND AND EXTENSION OF THE OPTICAL FIBER IN RURAL AREAS Location: Nationwide. More than 5000 km of optical fiber will be developed. Description: The project goal is to universalize the broad band in Peru: It will be divided into 3 sub projects. North project: Regions of Amazonas, Ancash more than 1,600 towns will be benefitedde Amazonas, Ancash Cajamarca, La Libertad, Lambayeque and San Martn. Close to 1,600 towns will be benefited. Center project: Regions of Ancash, Lima, Hunuco Huancavelica, Junn, Pasco, La Libertad, Loreto and Ucayali. Close to 1, 800 towns will be benefited. South project: Regions of Arequipa, Ayacucho, Apurimac, Cusco, Huancavelica, Moquegua, Puno and Tacna. Close to 1, 800 towns will be benefited. Estimated Investment (VAT not included): To be defined Concession type: Co-financed. It will have a non refundable financing from FITEL.. Current status: South project: under feasibility reformulation by FITEL in the Public Investment National System (SNIP) Center North and Center South projects: under feasibility reformulation by FITEL in (SNIP) Award date : IV Q 2011 Center coverage South coverage TO BE CALLED North coverage

Estimated Investment To be defined Private Initiative To be defined Expected date of Award To be defined Under evaluation To be defined PORTFOLIO PROJECTS 2011 Sector / Project Land transport Road Panamericana Sur : Ica frontier with Chile* Road Autopista del Sol Section Sullana Frontier with Ecuador. 275 km* Highway IIRSA Centro Multimodal Axis Port of Callao Port of Pucallpa* Longitudinal in the Forest in sections to be established by the MTC * Longitudinal in the Highland in sections to be established by MTC * Transandean tunel (Prov. of Yauli, Dpt of. Junn)* * Projects declared of National need and prioritized for 2011.

Location: Regions of Ica, Arequipa, Moquegua and Tacna. Description: The project starts in Ica and finish in the frontier with Chile. Its path will benefited Nazca Modality: Comprehensive project Bid Concession period: To be defined Current status: Under evaluation by the Ministry of Transport and Communication MTC Award Date: To be defined. ROAD PANAMERICANA SUR: ICA FRONTIER WITH CHILE Tacna Frontier with Chile Dv Arequipa Dv Moquegua Dv Ilo Camana Moquegua Ilo and Tacna among others. Estimated Investment: To be defined Camana Ica TO BE CALLED Nazca

Location: Regions of Piura and Tumbes. Description: Its route begins in Sullana and ends in the frontier with Ecuador (To be defined if it s in Aguas Verdes or Puente Internacional, or both). Additionally, it will benefit Talara, Mncora Zorritos, Zarumilla and Tumbes cities, among others. Current status: A Private Initiative was presented and it is under evaluation by The MTC (Ministry of Transport and Communication) with the aim to defined if it is going to be declared of interest. Award Date: To be defined. ROAD AUTOPISTA DEL SOL SECTION: SULLANA FRONTIER WITH ECUADOR Talara Zarumilla TUMBES Sullana PIURA Puente Internacional TO BE CALLED

UCAYALI HUNUCO PASCO JUNN LIMA IIRSA CENTRO HIGHWAY: MULTIMODAL AXIS CALLAO PORT PUCALLPA PORT Location: Departaments of Lima, Pasco, Huanuco and Ucayali. Description: Highway concession from the Port of Callao to Puente Ricardo Palma and from Dv. Cerro de Pasco to the Port Pucallpa. The project described, along with the section II of the IIRSA Centro already granted in concession (Bridge of Ricardo Palma-La Oroya-Huancayo and La Oroya-Detour. Cerro de Pasco) composed IIRSA Centro highway. Estiamted Investment: To be defined. Modality: Comprehensive project bid. Concession type : BOT concession Concession term: To be defined. Current status: Under evaluation by the Ministry of Transport and Communication - MTC. Award date: To be defined. IIRSA Centro highway section 2

Current status:Under evaluation by the Ministry of Transport and Communication MTC. Award date : To be defined. HIGHLANDS LONGITUDINAL TO BE CALLED Description: Construction of the highway on sections established by the MTC with the goal to interconnect Peruvian highlands with the regions of: Piura, Cajamarca, La Libertad, Ancash, Huanuco, Pasco, Junn, Huancavelica, Ayacucho, Apurmac, Cuzco and Puno. Likewise it will allow the lay out of pipelines for the installation of optical fiber corresponding to this project. Estimated Investment: To be defined. Concession period: To be defined..

TO BE CALLED FOREST LONGITUDINAL Description: Construction of the highway, on sections established by the MTC, in order to complete the sections built in the northern and central part of the country allowing the integration of the regions: Cajamarca, Amazonas, San Martn, Huanuco, Pasco, Junin, Cuzco and Madre de Dios. Estimated Investment: To be defined. Concession period: To be defined. Current Status: Under evaluation by the Ministry of Transport and Communication MTC. Award date To be defined.

TO BE CALLED location: Departament of Junn Description: As part of the drive rail system, the construction of the Trans Andean tunnel of 23.2 kilometers long is foresees, it will make much easy the route of central railway to avoid curves and zigzags. In this sense, the trip Lima Huancayo (Junn), Lima Cerro de Pasco and Lima La Oroya (Junn) will be done in less time compared with the actual. Estimated Investment : To be defined. Concession period: To be defined. Current status: Under evaluation by the Ministry of Transport and Communication MTC. Award date: To be defined. TRANS ANDEAN TUNNEL

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