Perspectivas del Desarrollo Regional: Estructura y Rentas

1
Investment status and perspective in the region
of Piura
PIURA
A region that has everything.
Dr. César Trelles Lara Regional President
2

• Piura is located in the north of Peru, exactly at
  1000 kilometers from Lima city. s
• It has coastal, highland and mountainous
  rainforest ecosystems. It limits in the north
  with Tumbes with and our neighbor country
  Ecuador, in the south with Lambayeque , in the
  east with Cajamarca and in the west with the
  Pacific Ocean.
• This is one of the most potentially rich in the
  country because of its agriculture, agribusiness,
  tourism, mining resources , marine and dry forest
  biodiversity.
• It has an area of 36 403 km2 and a total
  population of1700,000 inhabitants. (2008).
• Its is politically divided in 8 provinces and 64
  districts.

Piura
LOCATION
3

• Productive specialization
• Agribusiness (mango, lime, grapes, sugar cane and
  fruits)
• Oil products gas y petroleum
• Services and Trading.
• Fishing and aquaculture.
• Mining Phosphates, copper , molybdenum, etc.
• Beach, historical and gastronomic tourism.
• Economic and population concentration
• Highly populated areas are Piura, Sullana, Talara
  and Paita.
• Population is very young
• Sanitary risks in the rural zones particularly in
  the highlands called Sierra.
• Limitations or constrains
• Rights of property of lands and water usage
  (small areas called mini fundios) and risk of
  water scarcity duet to Poechos reservoir silting.
• Recurrent El Nino effects (heavy rains and
  droughts).
• Limited access to export services (Finance,
  updated information and others)
• Not much diversification of exporting goods.

ECONOMIC DYNAMICS OF PIURA
Oil production and Tourist Zone
Río Blanco
Tambogrande
Fishing Zone
Agribusiness Zone
Area of Poverty
Main Trading Routes.
Non Metalic Mininga Bayovar zone
ECONOMIC DYNAMICS
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VISION DEL DESARROLLO REGIONAL
Piura development depends on a coherent promotion
policy of the private investors in all the
sectors of the economic activity in harmony with
the rest of strategic objectives like i) to
have a sustainable and environmentally clean
region, ii) the development of capacities, iii)
effective fighting against poverty, iv) the
regional productive development and, iv)
efficient public management, with solid
agreement policy, strengthen citizens
involvement and participation.
REGIONAL DEVELOPMENT
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DESARROLLO SOCIAL Reducción de la pobreza,
inequidad, discriminación Económica social y
política
Economic Development Diversifying
production, Developing capacities, Economic
articulation
Central Axe
Capacities Development Count with
competitive human resources necessary to cover
the unsatisfied demand generated by the
regional economical activity.
Territorial Ordering Occupation, conditioning and
use of the land with environmental responsibility
and risk management.
Inter sectorial and inter institutional effort
to achieve a higher degree of competitiveness
Governamental stability Institutional
strengthening, transparency, citizen agreement y
city vigilance
STRATEGIC AXES 2007-2021
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ESTRATEGY IN PROMOTING INVESTEMENT

• It is centered in 04 policies and basic working
  lines
• Communications, based on the investment promotion
  on the ways of communication, airports, ports,
  roads, and internet connections.
• Competitiveness, improving the regional
  production, the productivity, and the capacity of
  business management in agriculture, agribusiness
  and tourism.
• Hydrology and Hydraulics, developing products of
  irrigation infrastructure dams, technological
  irrigation systems with a potential of more than
  500 thousand hectares under irrigation for
  agricultural products to be exported.
• Basic and social services infrastructure and
  social projects (education, health care,
  sanitation).

PROMOTING INVESTMENTS
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ESTRATEGY IN PROMOTING INVESTMENTS
PROMOTING INVESTMENTS
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PROTECTING OUR INVESTORS

• The Regional Government of Piura has been
  committed to develop in a sustainable way and
  effective competitiveness in promoting private
  investment in our region, giving assurance to our
  investors by providing
• Economic and legal stability within the framework
  of their competencies.
• Transparency and clear rules.
• Development the energetic infrastructure, and
  communication by roads, ports and airports.
• Concessions, Adjudications, Public and Private
  Participation and Strategic Alliances.

PROMOTING INVESTMENTS
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INVESTMENT OPPORTUNITIES

• Water
• Development of irrigation projects and
  infrastructure
• development Poechos, Alto Piura, Vilcazan
  and others.
• 2. Water system management.
• Agriculture
• Climatic advantage that allows to produce more
  than 60 products for domestic and foreign
  consumers.
• Nowadays there is 180 thousand hectares under
  irrigation, which are very important for our
  organic production.
• Mining
• Deposit of copper, silver, molybdenum y
  phosphate, diatomite, calcareous, silica and
  others.
• Oil and gas deposit.
• Aeolic energy 1600 MW of power
• Hydroelectric Energy Alto Piura

PROMOTING INVESTEMENT
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INVESTMENT OPPORTUNITIES

• Fishing
• Great biodiversity of species in the sea and
  inland
• (land and water availability).
• Public infrastructure and services
• Building roads.
• Building schools and health centers.
• Alliances with private investors
• Roads and ports concessions.
• Energy production.
• Services of gas providers and others.
• Services of international logistics and market
  access (clusters).
• Integration with economic paths domestically and
  internationally.
• Important interregional integration with the
  north and east regions.
• Integration with the south part of Ecuador and
  eastern Brazil.

PROMOTING INVESTEMENTS
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There is a policy and strategy in the use of
water resources according to the objectives of
the regional development.
Variant e) buildin Golondrina dam in Quiroz
river, 89.5 MD, 300 MMC
Variant c) building of a dam Shashahal in river
Macará 134.8 MD, 440 MMC
Variant d) San Francisco 151.3 MD, for 135 MMC
Espíndola y Anchalay 30 MD,
Variant a) elevation NAMO to the altitude 106,0
m no elevated dam 25 MD, 197 MMC
Variant f) bulding Vilcazan dam, 80 MD, 150 MMC.
Variant b) elevation del NAMO to the altitude
111,0 m 91.5 MD, 587 MMC.
PEIHAP 664MD, 335 MMC.
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Water Resource

• Water Piura, has four main rivers
• Average Annual
  Storage
• Mass
  Capacity
• Río Chira River 3600 MMC 480 MMC
• Río Quiroz River 207 220
• Río Piura River 700 0
• Huancabamba River 840 335()
• Underground water 450
  300()
• TOTAL 5797MMC
  700 MMC
• () Hydro energetic project de El Alto Piura
  (PEIHAP).
• () Valley del Alto Piura (Morropón) y (upriver)
  Piura (Sechura).
• Present water storage capacity is 700 MMC,
• Storage future potential plus the rehabilitation
  work of Poechos dam, San Lorenzo dam,
  and building PEIHAP and Vilcazan is of 1,800 MMC
  to irrigate more than 350 thousand hectares. A
  private investment of a bit more than US 900
  million.

HYDROLOGY AND HYDRAULICS
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Main Hydroenergetic Projects

• Hydro energetic Project del Alto Piura 702 MD
• Recovering of Poechos dam storage capacity 89 MD
• Buffer watersheds from Poechos dam 11 MD
• Vilcazan reservoir 50 a 80 MD
• Small reservoir of Espíndola
• Small reservoir of Anchalay - Suyo 26 MD
• Satellite reservoirs of Poechos Vilcazan,
  Shashasal (440), Golondrina (300), San Francisco
  (135).
• Management of aquifers of Alto Piura (15 MD) and
  Sechura.
• Rehabilitation of San Lorenzo irrigation system
  (5 MD).
• Rehabilitation of the drainage system in the
  valleys of Piura and Chira. 70 MD.
• TOTAL US 1500 MILLION

HYDROLOGY AND HYDRAULICS
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Agricultural Private Investment

• Propuestas de Siembras a 2010

SOURCE DIRECCION REGIONAL DE AGRICULTURA
-GRP-2008
AGRICULTURAL INVESTMENT
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• BENEFITS
• Employment increases in 50 thousand vacancies ,
  from which15 thousand are direct.
• Increment of regional exports in more than US
  250 million
• Increase of domestic food production
• Increase of total regional taxation

MAIN PRIVATE INVESTMENT ACHIEVED
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Other Private Investments June 2008-09
OTHER PRIVATE INVESTMENTS
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En promoción
Private Investment in Portfolio
PROMOTING INVESTEMENTS PROJECTS IN PORTFOLIO
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En promoción
Completed Public Investment in 2008 -2009
PUBLIC INVESTMENT 2008-2009
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En promoción
Executed Public Investmentn 2008 -2009
PUBLIC INVESTMENT 2008-2009
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Private Hydro energetic Component
HUANCABAMBA
IMPROVING OLD AREAS
RIVER HUANCABAMBA
NEW AREAS 19.000 ha
CH CASHAPITE
Private Agriculture Component
Publicly Financed Componente
GENERAL SCHEMA OF ALTO PIURA PROJECT
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• Direct Benefits
• Increasing agricultural land in 19,000
  hectares (Has.) and improvement of 31,000 Has.
• Generating 75 thousand direct job positions.
• US 400 million of Gross Value of Agricultural
  Production.
• Increasing exporting capacity of electric energy
  in the region 850 GW/h/año
• Reactivation of land market for agricultural use.
• Increasing land and water productivity.
• Increasing the export offer of agricultural
  products.

• Beneficios Indirectos
• Improving the income of the population in the
  area of the project with 150 thousand of indirect
  job positions
• Improving the standard and quality of life in the
  local population.
• More productive infrastructure in the region.
• More technical in the agriculture and livestock
  production.
• Increasing the tax collection due to the increase
  in productivity.
• Assuring food supply in the region and in the
  country taking into account the future climatic
  changes.

ALTO PIURA PROJECT BENEFITS
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FINANCING COMPONENT

• The main works of collecting and changing the
  course of water (Public Component) will be
  financed by public investment to eliminate the
  implementation risk. So that it will be
  attractive for the private investment the
  development of the productive infrastructure in
  the hydro energetic component and agricultural
  production as well.

Component I compromises Public works of
collecting and changing the water course of
Huancabamba river to the Valley of Piura river.
COMPONENT FINANCING
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WATERWORKS IN POECHOS DAM

• This Dam presents serious problems of silting
  (440 MMC), and it wasdeeply affected by el Nino
  that occured in the years 83 y 97-98, its
  capacity has been reduced the storage capacity in
  45
• Objetive recovering the water storage capacity
  of Poechos.
• The level SNIP has been approved in a
  pre-feasibility study. There is support from CAF
  for a feasibility study (US 0.5 Millones).
• At the same time we consider options of
  investment from private source and PPP to
  execute at least the first stage of the
  waterworks.

WATERWORKS FOR POECHOS DAM
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WATERWORKS FOR POECHOS Pre Feasibility study
Altitude 111,0 year 2011, US 90 M, 1070
MMC Altitude 106,0 year 2008, US 24 M, 680
MMC Altitude 104,5 year 2006, without cost, 580
MMC
Future ? 10 años
WATERWORKS OF POECHOS DAM
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Present status of Poechos Dam

• BENEFITS
• Recovering the storage capacity up to 1070 MMC.
• Assuring irrigation of at least 120 thousand
  hectares.
• Assuring 240 thousand direct jobs.
• Increasing the exporting production of Piura.
• Assuring enough food for local and national
  consumption.

WATERWORKS OF POECHOS DAM
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VILCAZAN PROJECT

• OBJECTIVE Improving irrigation in San Lorenzo
  valley and controlling silting in Poechos.

• Benefits
• Increasing regional water storage in 200 MMC.
• Irrigation regulation in San Lorenzo Valley.
• Obtaining two harvests a year in the present
  area, doubling the land productivity, obtaining
  more annual income per hectare by exporting the
  products.
• This will allow us to incorporate between 2,600
  and 4,200 new hectares depending of irrigation
  system and kind of crops in the valley.
• Production of about 20 to 24 MW of electric
  energy.
• Assuring 50 thousand direct jobs and 150 thousand
  indirect jobs.

• Present status
• There is a tempora concession requested by the
  users of San Lorenzo.
• GORE Piura elaborates Pre investment studies.

Estimated investment US 80 MILLION
VILCAZAN PROJECT
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ETHANOL PROJECT

• Being developed MAPLE ETHANOL Y PALMA DEL ESPINO.

• Initial private investment more than US 220
  million.
• MAPLE ETANOL first stage in 10,684 ha. The
  target is 30,000 hectares approximately, with a
  plant installed capacity of 300,000 liters a day.
• Generating 2000 dirct jobs and 7000 indirect
  jobs.
• Port and airport installations in the storage
  area are being considered.
• Marketing Exporting Ethanol valued in 50
  million. In the first stage.
• PALMA DEL ESPINO Initial investment of US 50
  million, based on an area of 5000 hectares, and
  associations with small local producers. At the
  present has more than 7000 hectares, generating
  3 thousand direct jobs and and more than 7
  thousand indirect jobs.
• Production of sugar and ethanol.

Developments applying Law Nº 28059, of
promoting investment, barren lands have been
given by the Regional Government
Fomenting private investment to generate
dignifying employement in the region
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CLAB
Talara Airport
Talara
INTERNATIONAL AIRPORTS
CETICOS PAITA (free tax zone)
Piura aìrport
Paita
PORTS
Bayóvar
ZONES OF LOGISTIC AGGREGATION
LEADING LOGISTIC BIOCEANIC CENTER
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Paita Port Bayovar Talara andPiura y Talara
Airports

• Modernization of Paita port, with the
  construction a wharf and loading crane allow
• Speed up the logistic and the competitiveness of
  the port.
• Approximate investment US 127.8 million.
• It is being promoted
• Private investment to build a multipurpose port
  in Bayovar and update the facilities of the port
  of liquids in Talara.

PORT INFRASTRUCTURE
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Aerial Bridge Piura Manaos LEADING LOGISTIC
BIOCEANIC CENTER IN THE SOUTHPACIFIC
ASIA-PACIFICO MARKET 52 DEL PBI MUNDIAL 50 DEL
COMERCIO MUNDIAL 40 DE LA POBLACION MUNDIAL
BRASIL
Piura has a strategically location and the
natural conditions of its ports offer great
opportunities to trade with Austral and South
East Pacific Region and also gives opportunities
to Brazilian producers to access these potential
markets back and forth to reinforce its
Industrial Zone of Manaus.
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• Aeolic Energy
• Required Potential 1,600 MW.
• Project Nor wind in execution present amount of
  US 220 million.
• Problem referential price to the producer of
  aeolic energy.
• Hydro electric Energy
• Hydroelectric Centers (HCs) in the Poechos
  system Curumuy (10 MW), Poechos I (17.5 MW) y II
  (12.5 MW)
• HCs in Quiroz Zamba (12 MW),
• Potential HCs.
• Alto Piura (300 MW)
• Vilcazan (24 MW).

ENERGY RESOURCES AND POTENTIALS
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MINING MAP
More than 474 thousand Has in 510 mining claims.
Metallic (copper, molybdenum, gold, etc.) non
metallic (phosphates, diatomite, calcareous,
etc.) fossil fuel and gas.
MINES RIO BLANCO - BAYOVAR
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Resources and potentialities.

• Great mining potential, at the present there are
  more than 500 mining claims (metallic and non
  metallic) based on an area of more than 474
  thousand hectares (hás).
• Main mineral resources evaluated.
• Tambogrande Gold 8.18 TM, Silver10.26 million
  ounces, Copper 39.3 Million of Tm (metric tons).
  Zinc 18.5 Million Tm.
• Huancabamba Río Blanco 1,293 Million of Tm of
  copper, with a grade of mineral of 0.71 , plus
  molybdenum presence of 228 ppm (parts per
  million)
• Artisanal mining of gold en Suyo, Paimas,
  Sapillica, lack of formality and order.
• Petroleum 292 millon of barrels of proved
  reserves, with prospective reserve which is three
  times this volume.
• Gas more of 1.3 trillion of cubic feet in
  reserve.

MINING RESOURCES AND POTENTIALS
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Mining Problems

• Fast and untidy growth of artisanal mining
  (traditional methods) in Piura, causing problems
  like
• Environmental water contamination and no good
  disposal of mining tailings affecting the water
  and the crops.
• Social conflict between agriculturalists,
  farmers and miners causing social unrest in the
  place.
• Legal lack of interest of being formal
  producers.
• Technical lack of interest in accepting new
  techniques and technology that can be
  environmentally friendly options with an evident
  benefit.

MINING RESOURCES AND POTENTIALS
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Proyecto Bayóvar Phosphates
BAYOVAR MORO POSITIONS FOR PEOPLE IN PIURA.
More Income and rents for the Regional and Local
Government (Canon) to be invested.
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POTENTIAL OF THE MINING- INDUSTRIAL CENTER OF
BAYOVAR
BAYOVAR CHEMISTRY INDUSTRY
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Longitudinal Axe of the North Sierra (highlands)
Exporting Sierra

• Important Axe for transport integration of
  Piura sierra, to help the development of Ayabaca
  and Huancabamba provinces, which have a great
  biodiversity and adequate climates for exporting
  agricultural products, livestock and aquaculture
  and particularly food production.
• Advances Managing at international level with
  the central government as well as strategic
  alliances with local governments to build roads
  like Canchaque Huancabamba, Montero Ayabaca,
  and Morropón Chalaco Pacaipampa.
• Investment US 120 million.

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Main Road Connections to export agricultural
products.

• Important costal axe to export agricultural
  products.
• Important offer of agricultural products (mango,
  lime, grape, pepper, sugar cane to produce
  ethanol, etc.) and lands for private investors.
• Opportunity to build roads and storage
  facilities.
• This axe allows to integrate Paita Port, with the
  productive zones of Morropón Chulucanas
  Tambogrande / Km 21 Piura/ Paita
• Approximate investment of US 30 million.

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OTHER PROJECTS

• To integrate roads
• Andina road Paving of road surfaces of the road
  Buenos Aires Canchaque Huancabamba (130Km.)
• Roads in the zone of the regional border (Border
  Sullana and Ayabaca)
• Road Ayabaca-Andino Central-H uancabamba.
• Project of integration of interprovincial roads
• Road SajinosPaimas Pje. Gde. Montero -
  Ayabaca (84 Km. Investment, 29.4 MD).
• Road TambograndeChulucanas ( 40 Km, 5 MD)
• Road Sechura-Paita (70Km.,16 MD) -Talara
• Road Morropón-Sto. Domingo- Chalaco - Pacaipampa.
  
• Projects of provincial integration
  Morropón-Chulucanas-Tambogrande- Km 21 Piura.

OTHER REGIONAL PROJECTS
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MANAGEMENT OF RIVER PIURA PROJECT

• Piura river has a basin of more than 1000 MMC.
• An effective and integral use of this resource is
  required. There are some advances
• Elaborating the profile SNIP of Polders to
  regulate and prevent floods in the valley down
  river.
• Studies of water fronts of Piura city.
• Business opportunities
• Financing and engineering works.

PROJECT MANAGEMENT OF PIURA RIVER
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MACRO REGIONAL INTEGRATION

• Deep compromise started in the year 2003 to
  integrate the north region with the east region
  of the country.
• It has been promoted and strengthen the board
  INTERNOR.
• Macro regional integration requires integrating
  the different interesting projects that have
  great impact in the development of the whole
  region.
• Main projects
• Bi oceanic corridor North Axe IIRSA Nº 6
• Consolidation of building the road Paita -
  Yurimaguas
• Yurimaguas Port is the next step, and
• Rehabilitation of Iquitos Port and waterways.
• The touristic axe of the north and east Aypate
  Kuelap Sipan - Beaches of the North.
• The axes agro export, fishing, agro industrial,
  green Sierra
• The highland longitudinal road (IIRSA Nor Sierra)
• The project Nor forest

REGIONAL INTEGRATION
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Interaction Space of Piura
ECUADOR
Santiago / Campanquiz
Aguas verdes
TUMBES
IQUITOS
Alamor
Saramiriza
Namballe
TALARA
San Ignacio
Sta. María de Nieva
Suyo
Las Lomas
Ayabaca
SULLANA
Tambo Grande
Urakusa
PAITA
Huancabamba
Nueva Cajamarca
Chiriaco
PIURA
Bagua
JAEN
Olmos
RIOJA
Pucará
YURIMAGUAS
Bagua Grande
Pedro Ruíz
Bayóvar
Cutervo
MOYOBAMBA
Mendoza
CHACHAPOYAS
TARAPOTO
Chota
CHICLAYO
Bellavista
Balsas
Bambamarca
Celendín
Saposoa
Chilete
Bolívar
PACASMAYO
JUANJUI
CAJAMARCA
San Marcos
Cajabamba
Otuzco

• Roads CATEGORIES
• . NATIONAL ROADS
• LONGITUDINAL OF THE COAST
• BI OCEANIC CORRIDOR
• LONGITUDINAL OF THE ANDES
• LONGITUDINAL OF THE JUNGLE
• TRANSVERSAL
• . REGIONAL ROADS
• INTEGRATING BORDERS
• NOR CENTRAL
• . COMPLEMENTARY ROADS
• Tarapoto
  Yurimaguas
• Chiclayo
  Cutervo Chota
• Chachapoyas
  Mendoza Omnia Saposoa Juajui
• Huamachuco -
  Tayabamba

HUAMACHUCO
TRUJILLO
Santiago de Chuco
Virú
Tocache
Mollepata
Tayabamba
Pallasca
Chao
Cabana
Corongo
CHIMBOTE
Uchiza
Huallanca
HCC/E. LEÓN
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PERSPECTIVES

• International Bidding Drilling the tunnel of
  Transvase (interbasin water flow) and Building
  South loophole of the project Alto Piura in
  November.
• Building the Stage III of the Santa Rosa
  hospital Tuberculosis, Oncology and Hematology
  modules.
• Executing the road Chulucanas Tambogrande.
• Bidding of the road Km. 21 Tambogrande
• Viability of the project Waterworks of the
  Poechos dam.
• Bidding of the Old Bridge in Piura city.
• Improvement of the road Canchaque - Huancabamba.
• Setting up a milking plant for the development
  dairy cattle production in Huancabamba.
• Promoting
• Component II, III of the Project Hydro energetic
  of the Alto Piura,
• Waterworks of Poechos dam to store 1,070 MMC,
• Promoting the building of satellite reservoir in
  Vilcazan,
• Development of public infrastructure projects
  roads, sanitation, electricity, health and
  education.
• Transferring technology particularly about
  irrigation.
• Organizing producers to be more competitive.
• Development of technical capacities and young
  professionals.

PERSPECTIVES
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VISIT PIURA !!! INVEST IN PIURA !!!
THANK YOU VERY MUCH
END