Peru Project Finance: Make it Rain

Peru Project Finance: Make it Rain

Brazil Chile Peru Funds Economy & Policy Corporate & Sovereign Strategy

by Jef Cozza  As agribusiness expands to meet rapidly growing world food demand, Peru is positioning to ride the trend. The government is helping to backstop financing for a new agricultural project that will turn 43,500 hectares of desert into arable farmland. The Olmos Project will cost over $500 million, with water delivery to the Lambayeque region expected to begin by March 2013. Financing for the project will be guaranteed by the Peruvian government but serviced using future cashflows from selling water to the companies farming the land. This model may pave the way for similar irrigation projects elsewhere in LatAm. Peru’s northern coastline may provide a particularl

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