The promotion of public-private articulation in Ayacucho, Huancavelica, and Ica can help identify opportunities to take advantage of these regions’ production potential, informed general manager of the Peruvian Institute of Economics Diego Macera, on the second day of the decentralized event Rumbo a PERUMIN – Central Peru Edition, organized by the Peruvian Institute of Mining Engineers (IIMP) and the PERUMIN 36 Organizing Committee.

During his presentation, Macera said that in order to improve competitiveness in our country’s central region, we need to strengthen management skills in regional and local governments, which will provide them with tools to better execute public resources.

"It is important to stress that a favorable investment climate must also be promoted. The development of large private investment projects requires a stable economic and political environment. Therefore, strategies must be implemented to prevent social conflicts related to extractive activities," he added.

On the other hand, he highlighted the importance of the mining sector for the analyzed regions, underscoring that the industry accounts for 17% of the combined GDP of Ayacucho, Huancavelica, and Ica, followed by manufacturing and agriculture, with 14% each. "If we break it down by region, mining accounts for 21% of Ayacucho's GDP, while in Ica it is 16%, and in Huancavelica, 11%," added the general manager of IPE.

Ica outperforms Ayacucho and Huancavelica in INCORE

According to the Regional Competitiveness Index (INCORE), an evaluation conducted by IPE, Ica leads among the evaluated regions, making the top five most competitive regions in the country. In contrast, Ayacucho and Huancavelica are at the bottom of the table, in 20th and 24th place, respectively.

"The INCORE considers six evaluation pillars: economic environment, infrastructure, health, education, labor, and institutionality. Ica ranks among the first places in the first, third, fourth, and fifth pillars. Ayacucho and Huancavelica, on the other hand, are lagging behind, with their institutions having the lowest performance levels," added Macera. 

Mining and development

Macera pointed out that central Peru has a mining construction portfolio amounting to 931 million dollars, with the Pukaqaqa project in Huancavelica being the largest in this portfolio. This project does not have an expected start-up date.

"Ayacucho, Huancavelica, and Ica together have fourteen mining exploration projects, with a total investment of forty million dollars. The first two regions lead in this area with eight and four projects, respectively. In view of this, we need to put emphasis on this portfolio and start its implementation as soon as possible so as not to continue losing competitiveness," concluded Macera.