Environment, Natural Resources, and the Blue Economy
The World Bank supported transformative projects focused on the precious natural resources of the Peruvian Amazon, aiming to improve forest management practices, the legal protection and recognition of indigenous communities, and the security of land tenure. 58 communities spanning over 230,000 hectares were empowered through land plating and titling initiatives.
The project also contributed to the recognition of 253 indigenous communities and the financing of 44 community production subprojects --including 16 initiatives led by women-- that promoted sustainable forest management, increased food security and income generation activities in 119 indigenous communities of the Peruvian Amazon.
People and Justice
Free legal assistance can be life-changing for the most vulnerable people. In Peru, ALEGRA Centers are assisting thousands of people, especially women, many of whom seek help for child support or who are victims of domestic violence. Between 2017 and 2022, the 45 ALEGRA centers across Peru handled more than 900,000 consultations,
In the last year, 32 400 cases have received legal assistance and sponsorship through the ALEGRA centers and they are now being expanded to reach remote indigenous communities through an itinerant justice initiative
Water and sanitation services in key urban areas
The World Bank supported projects such as the improvement of the sewage system in Lima, which substantially improved the efficiency, continuity, and reliability of water supply services for 64,878 households in northern Lima. Non-revenue water losses decreased from 40 percent to 25 percent in the project intervention area.
Connectivity in critical corridors of the territory
Urban transport, rural highways and telecommunications projects are critical for Peru’s development. Progress was made on the extension of the Lima Metropolitana bus system, the Cusco METRA express lane, and the subnational transportation program. Regarding the telecommunications industry, the World Bank supported regulatory reforms to promote private investment and competition, which will eliminate barriers and facilitate infrastructure development.
Absorption of skills and technologies
The World Bank successfully contributed to the acquisition of new skills and technology in the fields of agriculture, artisanal fishing, and aquaculture and in higher education. A total of 31,634 agricultural producers adopted new technologies and 78 percent of beneficiaries of artisanal fishing and aquaculture projects agreed to implement an innovation project. The World Bank has supported the STI system in the country through CONCYTEC and PROCIENCIA strengthening the system to improve research skills: 449 active researchers, 34 percent of which were women, under six PhD programs in strategic areas of innovation.
Progress towards a balanced engagement, on both supply and demand sides of the STI system, has been remarkable. CONCYTEC, with support of the World Bank, mobilized USD 1.5 million in private capital, including USD 221,436 from startup firms participating in the “Go-to-Market” program and USD 1,280,858 from private universities that benefitted from research grants.
At the sector level, innovations in fisheries were developed through adaptive and applied research, along with 194 innovations in aquaculture also developed.
Environment for sustainable private sector investments
The World Bank provided policy program support to enhance the private sector environment. The program helped new helped new firms register online, reduced excessive regulations, simplified the sales tax system, and introduced e-auctions. Emergency cash transfers were expanded to reach 2.5 million households, especially poor and informal workers, digital payment network facilitated these transfers.
The World Bank also supported companies facing severe and sudden demand crises through Reactiva Perú, an innovative credit guarantee mechanism. This program mobilized the equivalent of 8.5 percent of GDP in private liquid funds to grant loans to small and medium-sized enterprises. The competitive liquidity allocation system resulted in significant private sector credit inflows, supporting USD 16.5 billion in liquidity, and achieving historically low interest rates for end-borrowers. Half of formal workers are employed in firms that benefited from the Reactiva Perú program.
Disaster risk management and financial management
The World Bank provided assistance to the Government of Peru in the development of a comprehensive strategy for financial protection against natural disasters. It issued the Pacific Alliance Joint Catastrophe Bond for USD 200 million in February 2018 to protect against earthquakes over a three-year period. The bond provided coverage of USD 65 million when an earthquake affected the country in 2019. These bonds complemented Peru's staged financing strategy with traditional and non-traditional financial instruments.
The Bank also supported government efforts to improve the financial protection of public-private partnerships against disasters. In 2019, the Ministry of Economy and Finance included a chapter on insurance in its guidelines for the design of public-private partnership contracts. It also helped strengthen the risk and insurance databases of Peru and other Pacific Alliance countries. Additionally, the World Bank assisted the Banking and Insurance Authority (SBS) in strengthening the legal framework regulating the insurance industry.
Last Updated: Oct 05, 2023