National Public Investment System of Peru
Statutory Governing Body:
Through the General Directorate for Multiannual Investment Planning, the Ministry of Economy and Finance is the steering entity of the National System for Multiannual Programming and Management of Investments, and, in its role of the highest regulatory technical authority, manages the Investment Bank; it formulates the procedures and guidelines for multiannual investment programming and the investment cycle and supervises its quality; it prepares the State Multiannual Investment Program (PMIE); it approves the general methodologies taking into account the projects’ levels of complexity; it gives training and technical assistance to the entities subject to the National System for Multiannual Programming and Management of Investments.
The General Public Budget Directorate is in charge of analyzing the Multiannual Investment Program (PMI), establishing the budget limits in accordance with the available resources and preparing the Budget Bill, to be presented to Congress for approval.
The Ministry or the highest executive authority of the sector, regional government or local government, as the resolutive body, presents the sectoral, regional, or local PMI, as applicable, to the Ministry of Economy and Finance. The Multiannual Investment Programming Offices of the Sector, regional government or local government are in charge of the programming phase of the multiannual investment cycle; they verify whether the investment is aligned with the Multiannual Investment Program; they monitor the targets and indicators provided for in the PMI and monitor the progress of the investment project execution. The accredited formulating units of the sector, regional government, or local government for the formulation and assessment phase are responsible for applying the formulation contents, methodologies and parameters and preparing the required technical data sheets and pre-investment studies. The executory units are responsible for the execution of the investments and are subject to the design of the investments approved in the Investment Bank.
In 2016 Decree 1252 creates the National System for Multiannual Programming and Investment Management (also known as Inverte.pe) and replaces the National Investment System. One of the main goals of this law is closing gaps in infrastructure and access to State services, for the effective delivery of services and supply of the infrastructure necessary for the country’s development. In 2018 the regulations of Decree 1252 were published and in 2019 the General Directorate of the National System for Multiannual Programming and Investment Management was approved. This new Investment System gives ministries and legal and local governments the faculty to develop sectoral, regional and local plans that are based upon the identification of gaps in infrastructure and access to public services. See the complete legal framework.
The General Investment Programming Directorate has developed general formulation and assessment methodologies, as well as a methodology for the ex-post assessment of investment projects. These methodologies place an emphasis on the economic cost-benefit assessment (private and corporate), disaster risk identification, economic sustainability analysis of the projects during their projected functioning time, and gives guidance in the determination of the type of environmental impact study that might be necessary according to the project type. On the other hand, the sectors have the faculty to formulate and approve the specific methodologies of their sector. See the full list of methodologies.
The General Directorate for Multiannual Investment Programming annually prepares the PMIE with a 3-year horizon. This program integrates all PMIs. The PMIs are prepared by the Multiannual Investment Programming Offices of the sector, regional government or local government. The list of projects shows the complete portfolio of investment projects and indicates general details such as the entity in charge, the current phase of the project, the total investment amount, annual investment programming, unique investment code and accrued budget (in case of lagged projects). As part of their construction process, the sectors identify breaches in infrastructure and access to services, and, based upon this analysis, they establish multiannual goals in closing said gaps. With this diagnosis, sectoral prioritization criteria can be established to assign a numerical value to each of the criteria and thus assign a priority order to the projects that are part of the PMI. These criteria are used by the regional and local governments as per the sectors the projects integrating their own PMI are about.
The 2021-2023 PMIE highlights the most important gaps identified by each one of the sectors, the prioritization criteria per sector. This document also offers a detailed analysis of the composition of the public investment portfolio such as investments programmed according to the government level, investments programmed according to their function per department. The PMIE’s main document contains a list of the 5 most important investments of the representative sectors (transport, education, health, sanitization, agriculture and energy), including a brief description of the project, total programmed amount, and amount programmed for 2020-2022. The next section presents an analysis of the investments per sector linked to the main gaps identified, and the estimated projection in closing the gaps as the investments materialized. The last section is about incidences, mentioning investments that receive state resources without having been included in the PMI or having been prioritized. The PMIE and its annexes can be consulted on this website.
The National System for Multiannual Programming and Investment Management of Peru (Invierte.pe) has several information platforms to manage and monitor investment projects. The Investment Bank is the system used to register the projects from the sectors, regional and local governments. There is a restricted version for public officers and one for public access. The Project Bank contains general details of the project, investment amounts and programming, ex-ante assessment results, details of the execution phase and, for those projects that have been finalized, there is a section on the ex-ante assessments which, apart from the assessment of target compliance, the lessons learned during the execution phase are registered.
Additionally, there is the System for Investment Follow-Up which is also publicly accessible. This system gathers information from different platforms such as the Investment Bank, the Integrated Financial Administration System (SIAF-SP), the Electronic State Contracting System (SEACE) and the Public Works Information System (Infobras) operated by the General Comptroller of the Republic (CGR). Thanks to this interrelation, one single system shows the general information of the project, the physical-financial progress and the contracts related to the project. Another publicly accessible tool is the Public Investment Georeferenced System, which shows the location of the projects and applies filters to show on the map only those projects that meet the user’s parameters of interest. Once a project has been selected, to see its details, the user is redirected to the investment follow-up system.
Each year, the General Directorate for Multiannual Investment Planning prepares a training program for public officers who participate in any of the phases of the investment projects’ life cycle. Its website shows the calendar of the training, some of which are given remotely and require registration for participation, and others are transmitted publicly through the official Facebook page of the Ministry of Economy and Finance. The main topics of the current program include Reactivation of Public Works, Investment Budget Management and Emergency Response. The website also gives access to material of past training.
The life cycle of the investment projects in the National Multiannual Programming and Investment Management System starts with project ideas that can contribute to closing gaps in infrastructure, access to public services and are related to national and sectoral planning. After receiving them as ideas the Formulating Units (UF) prepare technical datasheets of the projects as per the applicable general and/or sectoral methodologies. The UF formulate and assess the investment projects. The type of pre-investment study depends on the investment amount of the projects: A simplified technical data sheet is prepared for investment projects of 750 Tax Units (UIT) or less. A standard technical data sheet is prepared for projects of investment amounts equal to or lower than 15,000 UIT. A technical data sheet is prepared for projects lower than 407,000 UIT and a pre-investment study at profile level is prepared for high-complexity projects of over 407,000 UIT (for more details, see the directions of the SNMPGI).
Those projects that, after the ex-ante assessment, are considered viable and, according to the prioritization criteria of each sector are considered priority are registered in the Investment Bank of the General Directorate for Multiannual Investment Programming (DGPMI). When investment projects receive external financing or public-private participation, the DGPMI has to endorse the convenience of performing those projects. Once in the Investment Bank, projects can be included in the Budget Bill and receive funding to be executed.
During the execution stage, the Investment Execution Units (UEI) register and report the physical-financial progress to the Multiannual Investment Programming Offices (OPMI) of the sector, and the other systems available for such purposes, such as the Investment Follow-Up System and the Integrated Financial Administration System (SIAF-SP). Based on the information reported, the OPMI and the DGPMI prepare monthly and annual physical-financial progress reports. There are also national, regional and local committees that get together and analyze the progress of the investment projects. It is possible to monitor the progress of projects through the Investment Follow-Up System. This platform supplies general information of the project such as ex-ante assessment results, finance amounts, investment programming, georeferenced location, physical-financial progress and contracts related to the project. Once the projects have been finalized, the OPMI should perform ex-post assessments on the investment projects and integrate them into the Investment Bank. These assessments can be consulted publicly.
The Public Investment Policy cycle starts with the multiannual programming of public investment in the ministries, national bodies and dependencies, regional governments and local governments. For such purposes, each sector develops its own PMI. To prepare the PMI, the sectors identify the existing gaps in infrastructure and access to public services in their sector. Based on the identification of these gaps, goals, and indicators are established to measure closure of the gaps at minimum of 3 years. Once there is a consensus inside the sector on the identified gaps, the prioritization criteria are prepared to qualify the investment projects that contribute to closing the infrastructure and public services gaps. Additionally, these prioritization criteria consider the contribution these projects make to national and sectoral planning, as well as their potential impact on reducing poverty or other specific problems of the sector. The prioritization criteria are adopted by the regional governments and the local governments for their own PMIs.
The OPMI of the sectors, regional governments and local governments prepare the PMI with the projects that have been prioritized and selected by these institutions (including the projects with external finance and public-private participation). The PMI is registered by the OPMI in the Investment Bank managed by the General Multiannual Programming Directorate (DGPMI). Once all the OPMI register their investment programs, the DGPMI prepares the PMIE and sends it to the General Public Budget Directorate for analysis and adjustments according to the budget limits established (DGPP). After the adjustments, the PMIE is included in the Budget Bill which is sent to Congress for discussion and approval.
During the execution of the PMIE, the DGPMI and the OPMI of the sectors, regional governments and local governments follow up on the progress of the projects and the implementation of the budget as a whole. For that, they use the information reported by the executory units in the Investment Bank and in the Integrated Financial Administration System (SIAF) of the DGPP. Additionally, the General Comptroller has its own platform, the INFObras System, which shares information with the Investment Bank and the SIAF. These platforms improve transparency since both the Investment Bank and INFObras are publicly accessible and enable citizens to know the most relevant details of the projects and of the PMIE as a whole. In INFObras citizens can even send comments and add photos to make complaints when what has been reported on the platform is not reflected in reality. The DGPMI also gives the public access to the monthly and annual follow-up and assessment reports of the execution of the Multiannual Investment Program of the State, as well as the progress on closing the gaps in infrastructure and public services per sector and territory.
Latest update: July 1, 2021