Economy and Finance Minister Alex Contreras on Tuesday disclosed that there are currently four companies which have shown interest in building a petrochemical plant in Peru’s southern area.
“A few weeks ago, the Energy and Mines minister (Oscar Vera) announced that two companies were interested in the petrochemical (plant); currently, there are four companies that have shown interest (in this regard),” Contreras said during a press conference.
The Cabinet member explained that companies from Australia, Chile, Colombia, and the United States are behind the aforementioned plant.
“We didn’t have a petrochemical-focused agenda, but this government is relaunching it, because there is interest from investors,” he noted.
Minister Contreras stressed that the development of a petrochemical plant in southern Peru, supported by private investment, will contribute to producing cheap fertilizer for farmers.
“The petrochemical (plant) will contribute to ensuring fertilizers for agriculture, benefiting farmers with lower prices,” he noted.
The government official indicated that the construction of two plants for the production of fertilizers and inputs for mining activities would require an investment of close to US$1.5 billion.
“The petrochemical (plant) will also provide operational continuity to the mining sector because, by producing ammonium nitrate for mining, it will generate autonomy with regard to external supply risks,” he underlined.
Moreover, Minister Contreras said the petrochemical plant will help reduce vulnerability and dependence on exported inputs.
“We saw what happened during the fertilizer crisis. We had the resources, but we could not purchase fertilizers; in the end, the fertilizers were not bought, since the fourth purchase could not be completed and that generated, added to water stress, the worst fall in agriculture in 2023,” he indicated.
Subsequently, Contreras remarked that the petrochemical plant will be built with “pure and hard” investment since there is no fiscal space for its execution as a public work.
“The investment amounts, just to mention them, range between US$2 and US$11 billion, and if we place ourselves in the middle, we are talking about US$6 billion; the impact that this (project) will generate in growth, in competitiveness, is enormous,” he underscored.
Source : Andina