The president of Institute of Mining Engineers of Peru (IIMP), Abraham Chahuan, pointed out that there are 23 projects valued at US$30,000 million that have not been executed to date, due to the excessive paperwork of government institutions. This was announced by him in his last conference called “Reflections on mining evolution from the IIMP”, as head of the institution for the period 2022-2024.
“Of those 47 projects or 51, the bulk, a total of 23 are delayed for reasons beyond the control of the company, with an investment of US$ 30,000 million,” he said on Mining Thursday. And to promote them, at least 407 administrative regulations are required in 29 State institutions.
He pointed out that the cost of non-execution of these initiatives between 2008 and 2022 meant losses of S/700,000 million for the Peruvian economy and S/ 123,000 million in tax collection.
“The numbers are overwhelming. Do we want a developed country? “We have these resources, the human capital, the investment, but this issue of permits is the obstacle”he added.
He added that the non-development of these projects also prevented an additional 1.7 million people from escaping poverty in 2022.
Finally, Chahuan stated that the S/ 123,000 million not collected by projects would have covered the short-term infrastructure gap, equivalent to S/ 117,000 million. “The S/ 43,000 million in revenue that was not obtained for Cajamarca would have been used to finance its project portfolio eight times”he asserted.
