INVESTMENT OPPORTUNITIES IN PERU

INVESTMENT OPPORTUNITIES IN PERU February, 2008

Why invest in Peru? GDP GDP growth: growth: 8,9% 8,9% annually annually (2007) (2007) Sustainable Sustainable growth growth since since 2002 2002 and and forecast forecast above above 7% 7% annually annually 2008-10. 2008-10. Exports Exports tripled tripled in in 5 5 years. years. Investment Investment is is increasing increasing 20% 20% annually. annually. Vast Vast Natural Natural Resources: Resources: Ores, Ores, hydrocarbons, hydrocarbons, available available lands lands having having proper proper climates, climates, forests, forests, 2 2 500 500 km km of of coast, coast, thousands thousands of of lakes, lakes, snowcapped snowcapped mountains. mountains. Regional Regional Hub/ Hub/ APEC APEC 2008 2008 Venue Venue Third Third largest largest country country in in South South America America / / 28 28 million million inhabitants. inhabitants. Located Located in in the the center center of of the the South South American American Pacific Pacific Coast. Coast. Economy Economy committed committed to to the the commercial commercial integration integration process process :: Preferential Preferential access access to to CAN, CAN, MERCOSUR, MERCOSUR, USA USA and and EU. EU. 32 32 agreements agreements on on investment investment.. Favorable Favorable climate climate for for investment: investment: Attractive Attractive legal legal framework framework for for Foreign Foreign Direct Direct Investment, Investment, based based on on freedom freedom and and equality. equality. First First place place in in Latin Latin America America regarding regarding the the State State receptiveness receptiveness to to investment investment (WEF). (WEF). Second Second place place in in Latin Latin America America for for protecting protecting the the Foreign Foreign Direct Direct Investment Investment (WB). (WB). DBRS DBRS (Canada) (Canada) rated rated Peru Peru with with investment investment grade grade Country Country risk risk below below the the Latin Latin American American average average One One of of the the lowest lowest inflation inflation in in Latin Latin America America and and a a very very stable stable exchange exchange rate rate (free). (free). Domestic Domestic capital capital market s market s sound sound growth. growth. Fiscal Fiscal surplus surplus of of 2.5% 2.5% (2007). (2007).

Investment plays an important role in the country s Economic Growth and signals a promising future 2004 2005 2006 2007 GDP (%change) 5.1 6.4 7.6 8.9 Private Investment (%change) 9.1 13.9 20.1 24.0 Public Investment (%change) 5.7 12.2 13.0 27.0 CPI (%change) 3.5 1.5 1.1 3.9 Jobs in companies with 10 or more workers (% change) 2.7 4.5 7.3 8.7 Exports (% change) 40.9 35.3 36.9 16.3 Capital goods imports (% change) 19.6 29.6 35.4 41.0 Construction GDP (% change) 4.7 8.4 14.7 16.5 Tax collection (% change) 13.6 14.3 27.8 15.0 Source: Central Reserve Bank of Peru, National Institute of Statistic and Information and SUNAT

Sustained economic growth with annual forecasted average rate greater than 7% for 2006 2010 10% World Developed Countries Peru 8,9 8% 7,6 6% 5,2 5,2 6,4 4% 3,9 2% 0% 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 Source: International Monetary Fund and the Central Reserve Bank of Peru.

Exports growth at significant rates Accompanied by private investment growth Source: Central Reserve Bank of Peru., Customs

Rise in the commercial exchange (Millions of US$) Increase in the imports of capital Goods ( Millions of US$) Source: Central Reserve Bank of Peru.

Peru has improved its fiscal position (% of GDP) By increasing its central government tax revenues Source: Central Reserve Bank of Peru and SUNAT.

... in a framework of macroeconomic stability... Exchange Rate in Latin America (Index January2001 = 100) 220 200 180 160 Peru Brazil Chile Colombia Mexico 140 120 100 80 2001 2002 2003 2004 2005 2006 2007 2007 Average Exchange Rate: 3,13 Inflation Rate 2007: 3.9% Source: Bloomberg and Banco de Crédito del Perú Source: Central Reserve Bank of Peru, Chile, Mexico and Argentina, until December 2007

With increasing Net International Reserves Factors recognized by the market and allow the country risk reduction International Net Reserves s (Million US$) Source: Central Reserve Bank of Peru Source: Bloomberg

Just one step away from the Investment Grade Investment Grade Peru close to the investment grade S&P/ Fitch Moody s Characteristic AAA Aaa Risk free AA+ Aa1 AA Aa2 Superior AA- Aa3 A+ A1 High capacity of A A2 repayment A- A3 BBB+ Baa1 Moderate capacity of BBB Baa2 repayment BBB- Baa3 BB+ Ba1 Some capacity of BB Ba2 repayment BB- Ba3 B+ B1 High uncertainty in the B B2 capacity of repayment B- B3 CCC+ Caa1 Highly vulnerable to CCC Caa2 default CCC- Caa3 D Ca Default Latin American Ranking País S&P Fitch Moody s Chile A+ A A2 Mexico BBB+ BBB+ Baa1 Colombia BBB- BB+ Ba2 Peru BB+ BB+ Ba2 Brazil BB+ BB+ Ba1 Venezuela BB- BB- B2 Argentina B+ B B3 Bolivia B- B- B3 Ecuador CCC+ B- Caa2 Source Bloomberg. Source: Standard & Poor s, Fitch Ratings and Moodiy s Updated: December 2007

Peru offers a favorable legal framework for foreign investment... Non discriminatory treatment. Unrestrictive access to most economic sectors. No performance requirements. Free transfer of capital. Free competition. Guarantee for Private Property Freedom to purchase stocks from locals. Freedom to access internal and external credit. Freedom to pay royalties. Network of investments agreements and member of ICSID and MIGA Legal Framework: Constitutional provisions, Law for the Promotion of Foreign Investment, Legislative Decree N 662, Framework Law for Private Investment Growth, Legislative Decree N 757, Law for the Promotion of Private Investment in Infrastructure and Public Service Works, Approved by Supreme Decree N 059-96-PCM

A Legal system that guarantees basic rules and statutes that will not change Guarantees recognized by the State: Legal Stability Agreements INVESTORS Non discriminatory treatment. Income tax rules applicable to dividends. Stability to use freely the most favorable exchange rate available in the market. Free availability and remittance of foreign currency, dividends and royalties. RECEIVING COMPANY Recruitment regimes. Regimes for the promotion of exports. Income Tax Regime Requirement: Minimum investment of US$ 5 MM in any economic sectors. US$ 10 MM for hydrocarbon and mining sectors. Validity: 10 years. Concessions: Term according to the contract s life (Max. 60 years).

With a steady tax regime, which main taxes are: Tax Applicable Rate I n c o m e Corporate profits Dividends Royalities Interest rate on loans from abroad 30% Agriculture, agribusiness and aquaculture 15% 4,1% 30% 4,99% Value Added Tax (VAT) 19% Finacial Transactions Tax 0,07% throughout 2008 Temporal to net assets For more than S/. 1 000 000 0.5% Note: Taxable goods: fuels, luxury goods, liquors and cigarettes Legislative Decree No. 973 (12.03.07) standardizes the treatment for all economic activities regarding the advance recovery of the value added tax (VAT). It will come into force and effect the first business day of the month following the 90 calendar days that may take for this Decree s regulations to be prepared and published. It is established that tax payers who purchase capital assets but do not start operations, within the framework of investment contracts subscribed with the State, will be able to recover the VAT paid in said purchases.

and a reduced tariff structure and low tariff dispersion TARIFF LEVELS AD-VALOREM + TARIFF LINES SURCHARGES NUMBER PORPORTION (%) 0 3 568 48,5 9 2 718 37,0 17 1 052 14,3 20 13 0,2 Total 7 351 100,0 SIMPLE AVERAGE APPLIED TARIFF RATE 5,8 STANDARD DEVIATION 6,2 EFECTIVE AVERAGE TARIFF 3,0 Source: Customs

Access to several markets EFTA Canada China Thailand Singapore Korea Japan A P E C Mexico: ACE 8 Central America U.S.A Andean Community European Union W T O CARICOM China India MERCOSUR ACE 58 Australia Chile: ACE 38 ACE Plus New Zealand Countries with ongoing agreements Countries with signed agreement Countries under negotiation process Countries close to start negotiations. Countries for future negotiations

Bilateral Investment Agreements Argentina Australia Belgium and Luxemburg* Bolivia Canada Check Republic Chile China Colombia Cuba Denmark Ecuador El Salvador Finland France Germany Italy Korea Malaysia Netherlands Norway Paraguay Portugal Rumania Singapore Spain Sweden Switzerland Thailand United Kingdom United States** Venezuela * Signed agreement **Trade Promotion Agreement

According to a World s Bank survey and World Economic Forum: Peru stands second in the Latin America region in protecting investors, and 15th in the World Peru is first in the region for government readiness for private investment Position Country Points 1 Peru 5.8 2 Colombia 5.6 3 Chile 5.5 4 Uruguay 4.8 5 El Salvador 4.6 6 Bolivia 4.5 7 Brazil 4.2 8 Dominic. Rep. 4.2 9 Mexico 4.1 10 Guatemala 4.0 11 Venezuela 3.2 12 Argentina 3.1 Source: Doing Business 2008. Source: World Economic Forum, Benchmarking National Attractiveness for Private Investment in LA Infrastructure. 2007

Main Investment Opportunities by sectors Agribusiness and Agro-exporting Forest Plantations Fishing and Aquaculture Manufactures, Textiles and others Mining and Hydrocarbons Tourism and other services INFRASTRUCTURE

Sowing Opportunities: Agribusiness and agro- exporting sector

Advantages in the Agribusiness and Agro-exporting sector 1st world exporter of asparagus and paprika. 2nd exporter of organic coffee worldwide. Important exporter of organic bananas, citrus fruits,white onion and beans, among other fruits and vegetables. 5 million hectares of land, many of them with possibility to schedule crop periods due to optimum climate conditions. Due to our geographical location, near to the equatorial line, we receive vertical sun radiation, which allows an improvement in most crops productivity. Access to Seasonal windows in the most important markets permitting a rise in prices (U.S., Europe and Asia). Skilled workforce availability.

Agribusiness Products Product Productivity of Peruvian Agribusiness worldwide Ranking by Product Worldwide Latin America Mango 1 1 Asparagus 1 1 Sugar Cane 1 1 Grape 3 1 Avocado 5 4 Coffee 6 4 Pepper 10 3 US$ Millions Exports of main products 800 700 Mango Paprika Avocado 600 Grape Artichoke Asparagus 500 400 300 200 100 0 1999 2000 2001 2002 2003 2004 2005 2006 2007 Source: PromPex, Adex Data Trade and Custom Others 36% United Kingdom 4% Agribusiness Exports by Markets, 2007 France 5% Netherlands 9% United States 32% Spain 14%

Fishing and Aquaculture

Fishing and Aquaculture Advantages 1st world producer and exporter of fishmeal and fish oil, it contributes to the development of a vast range of fishing products. Great hydrobiological richness: Annual average unload of 7,5 million MTB between 2005-2007(mainly anchovy) Multiple species not yet entirely exploited. Rapid growth of development and exportation of direct human consumption products: Frozen, canned and processed fish products. Long coastline (over 2500 km.) and many Peruvian lakes and lagoons are solid proof of the great marine and continental aquaculture development potential. Expansion of exportation of fishing products like king prawn, shrimp, scallops, trout and ornamental fishes, mainly.

Fishing and Aquaculture Advantages 2100 1800 Exportation of Fishing Products 1,634 1,774 1,958 Fishmeal 62% Fishing Exports, 2007 Others 15% Scallops 2% King Prawn 3% US$ Millions 1500 1200 900 1,131 1,123 1,056 1,025 1,381 Fish oil 13% Frozen pota and squid 5% Frozen fillet of Hake 0% 600 Exports by country, 2007 300 0 2000 2001 2002 2003 2004 2005 2006 2007 Others 42% Spain 20% United States 16% France 5% Korea 6% China 11% Fuente: Prompex, Adex and Central Bank of Peru

Mining Sector

Advantages in the Mining Sector 1st producer of gold, silver, zinc, tin, and lead in Latin America. 2nd producer of copper and molybdenum. Almost all the large transnational mining companies operate in Peru. In 2007, exports went over US$ 17 billion. Announced investments for the coming years will reach almost US$ 15 billion. High potential in the non-metallic mining industry in: Borates, diatomite, bentonite, phosphoric rock and travertine, among others. A Segment of Capital risk or Projects Bank has been developed by the Lima Stock Exchange, majored in the mining exploration sector. Only 10% of Peru s territory with mining potential has been explored. Mining refinement processes are taking place in Peru. Manufacturing growth is expected in the sector.

Source: CEPAL Advantages in the Mining sector Excellent Competitive Position Production Ranking Latin America Worldwide Silver 1 1 Tellurium 1 2 Zinc 1 3 Tin 1 3 Lead 1 4 Gold 1 5 Copper 2 3 Bismuth 2 3 Molybdenum 2 4 Source: MINEM Investment in Mining Exploration (In US$ Million) US$ 475 Source: PromPeru, MINEM Mining Exports (In US$ Million) Exports, 2007 Mineral Exports ( US$ Million) Var. % 2006 2007 Copper 5,986 7,241 21.0 Gold 4,004 4,113 2.7 Zinc 1,991 2,535 27.3 Lead 713 1,033 44.9 Molybdenum 835 982 17.6 Silver 480 537 11.9 Iron 256 285 11.3 Tin 349 254-27.2 Others 24 51 112.5 Total 14,638 17,031 16.3

Knitting and Sewing the future...

Advantages in the Textile sector Development of Peruvian textile chain enabling rapid service to full package orders. Peru is garment supplier for renown brands in the world. High quality of Peruvian Pima cotton. 1st world producer of vicuna and alpaca fibers, Peru native animals. In the last 8 years, exports have doubled more than foreseen, keeping a growth rhythm of approximately 12% per year.

Advantages in the Textile sector Textile-Apparel Exports (In US$ Million) Brands served by Peruvian Companies Source: Prompex United States 48% Exports per Country, 2007 Venezuela 24% Colombia 3% Abercrombie & Fitch Adolfo Dominguez Ara Intersales Armani Exchange Calvin Klein Donna Karan Inc. DKNY Duck Head Apparel Co. Eddie Bauer Guess Inditex / Zara Polo Ralph Lauren Perry Ellis International Russell Corporation The Gymboree Corp. Tommy Hilfiger Izod JC Penny J. Meneses Group Inc. Nassino Dutti Nautica New Balance Lacoste Kenneth Cole Levy Strauss and Co. Oakley Palacio de Hierro Ragman Reebok Vanity Fair Saks Inc. Source: Prompex Others 19% Chile 3% Italy 3%

Forestry Sector

Advantages in the Forestry sector 2nd country in Latin America in natural forest areas. 65.2 million of forest hectares: 53,5 million of hectares with forest potential, 10 million for reforestation and other areas for plantations. Development of tropical hardwoods in the Rainforest and softwoods in Peru s Highland. High-commercial valued woods: mahogany, tropical cedar and cumula. Forest Concessions are granted to the private business sector. Potential to export annually US$3 billion in woods and by-products. It also offers investment opportunities in lumber industrial complexes.

Advantages in the Forestry Sector Total of Forest (Million of Has.) Forestry Exports (US$ million) Ranking Country Forest area 1 Russia 851.4 2 Brazil 543.9 3 Canada 244.6 4 United States 226 5 China 163.5 6 Australia 154.5 7 Congo 135.2 8 Indonesia 105 9 Angola 69.8 10 Peru 65.2 11 India 64.1 12 Sudan 61.6 13 Mexico 55.3 14 Bolivia 53.1 15 Colombia 49.6 Source: Operative Plan of the Exporting Sector. Maximize. 2004 Source: ADEX Data Trade

A bet on the future: Tourism Sector

Advantages in the Tourism sector Cultural and historical heritage together with a great biodiversity make Peru a unique worldwide country with high potential to develop tourist products and services. Peru has one of the 7 Wonders of the Modern World: Machu Picchu and other 9 Cultural Heritage Worldwide: Nazca s lines, Lima city, Arequipa and Cuzco, Chanchan, Chavin de Huantar, National Park of Manu, Huascaran and Abiseo River. Rapid development of the North-East Circuit: Sipan, Chan-Chan and Kuelap. Nature tourism destination since Peru is one the 5 countries worldwide with great biodiversity. Also important are Experimental tourism, hot springs and gastronomy which is considered by The Economist as one of the top 10 around the world. Significant increase of visits is foreseen, from 1.7 million in 2006 to 3.7 million by 2013.

Some figures. Source : MINCETUR Years:2003-2005 : registred arrivals / Years: 2007-2012 : Forecast International Arrivals: main origin countries (In thousands of people) Country 2000 2001 2002 2003 2004 2005 2006 Chile 201 167 239 249 307 353 410 U.S. 99 108 190 240 287 297 311 Ecuador 99 108 62 81 111 88 85 Bolivia 68 69 59 59 63 71 83 Spain 99 108 30 30 42 58 67 United Kingdom 5 5 42 48 51 60 61 France 10 10 37 40 46 54 57 Argentina 26 32 36 38 45 54 57 Source: DIGEMIN

Infrastructure: Piura Iquitos Port Investment Opportunities Paita Port Costa - Sierra Yurimaguas Port Salaverry Port Road Network 4 Pucallpa Port Road Infrastructure Airports Ports Sanitation Hydrocarbons Energy Telecommunications Chimbote Port Supply drinking water for Lima Electric Train Pisco Port IIRSA Center Branch Regional Andahuaylas Pipelines Ayacucho Puerto Maldonado Electric Train Arequipa Juliaca Ilo Port Tacna

Investment Opportunities ProInversion SECTOR ESTIMATED INVESTMENT (US$ MM) Energy 994 Land Transport 631 Sanitation 330 Ports 411 Agriculture 311 Airports 157 Hydrocarbons 60 Telecommunications 200 Housing 768 Others 166 * TOTAL 4027 *Decentralized (62 US$ millions), Sugar processing companies (60 US$ millions), mining (US$ 30,0 millions) and tourism (13.5 US$ millions).

Investment Opportunities in Land Transport PROJECT ESTIMATED INVESTMENT (US$ MM) AWARD DEADLINE Road Network Nº 4 150 III QT 2008 Center Amazon Axis 160 IV QT 2008 Lima City Urban Train 280 I QT 2008 Costa-Sierra Road Program: Ov. Chancay / Dv. Variante Pasamayo Huaral Acos 27 II QT 2008 Costa Sierra Road Program: Nuevo Mocupe Cayaltí Oyotún 14 II QT 2008 Sun Highway To be defined III QT 2008 Total Estimated Investment (US$ MM) 631

Road Network N 4:Pativilca-Trujillo-Conococha-Caraz D E S C R I P T I O N Project Description: Rehabilitation of the North Panamerican between Pativilca and Trujillo. Construction of Chimbote beltway, 4 bridges and second road between Pativilca and Trujillo (some parts by the Concessionaire and others by the Grantor). Operation and maintenance of all sections. The concession length is 356 km.. Method: Concession through comprehensive projects. Estimated Investment: Approx. US$ 150 million including Sales Tax. Term of Concession: 25 years. Status: Promotion Plan under review. Competition Factor: Additional kilometers to be built by the Concessionaire, above the minimum established by the Peruvian State. Schedule: Award: 3rd QT. 2008

IIRSA Amazonas Corridor Central Branch D E S C R I P T I O N Pucallpa Project Description: The Grantor will be in charge of putting in operation all the sections and the construction of new works will be carried out by the Concessionaire: beltways of R.Palma and La Oroya. The Concessionaire will be responsible for the operation and maintenance. Estimated Investment: Approx. US$ 160 Million including Sale Taxes. Schedule: Award:4th QT. 2008 R. Palma

Electric Train Project D E S C R I P T I O N Tramo por construir Estación Hospital Dos de Mayo Tramo construido Estación Atocongo Estación Villa El Salvador Project Description: The project consists on granting in concession sections of line 1: Villa El Salvador- Atocongo (9.20 km built) and Atocongo Hospital 2 de Mayo (11.70 km to be built). Further concessions of branches are under study. Method: Concession through comprehensive project. Estimated Investment: Approx. US$ 280 Million including taxes. Term of Concession: Maximum 30 years. Status: Promotion Plan is already approved Competition Factor: Lowest co-financing and demand required. Schedule: Award: 1st QT. 2008.

Costa Sierra Road Program Nuevo Mocupe - Cayalti Oyotun D E S C R I P T I O N DESCRIPTION OF PROJECT: the project consists on grating in concession of section Nuevo Mocupe Cayalti Oyotun, in the department of Lambayeque, which connect potential zones of economic growth of the Andes valleys to the coast. The concessionaire will rehabilitate, maintain and operate the road. ESTIMATED INVESTMENT: Preliminary Amount US$ 12 Millions TERM OF CONCESSION: Up to 15 years COMPETITION FACTOR: Lowest State allowance SCHEDULE: Awarding: 2nd quarter 2008

Sun highway: Section Trujillo - Sullana D E S C R I P T I O N Description of the Project: Rehabilitation of the Panamerican Norte road between Trujillo and Sullana, construction of Piura beltway by the grantor and the construction of the second sidewalk between Trujillo and Sullana (part by the Concessionaire and part by the Grantor). Operation and maintenance of all sections by the Concessionaire. The extension of the concession is 469 km. approx. Method: Comprehensive project bidding. Estimated investment: To be determined Concession term: To be determined Status: Acceptance by the Proinversion s Steering Council. Competition Factor: Number of additional kilometers that the Concessionaire engages to build, over the minimum number established by the State of the Republic of Peru. Schedule: Award planned for III Qt 2008.

Investment Opportunities in Port Terminals PROJECT ESTIMATED INVESTMENT (US$ MM) AWARDING TERMS Sea and River Port Terminals 411 - San Martin, Iquitos, Paita and Pucallpa III QT. 2008 - Ilo IV QT 2008 - Salaverry, Chimbote and Yurimaguas I QT 2009 Total Estimated Investment (US$ millions) 411

Port Terminals D E S C R I P T I O N Project Description: Paita Salaverr y Chimbote Pisco Iquitos Yurimaguas Pucallpa Ilo Development and promotion of the following projects: Upgrading, rehabilitation, installation of cranes and others, as well as the operation of province Port Terminals: Paita (Piura), Salaverry (La Libertad), Chimbote (Ancash), San Martín (Ica) and Ilo Moquegua). Design, construction, financing (partial), operation, management and maintenance of river terminals in Iquitos, Pucallpa and Yurimaguas. Note (**): The investment has been determined according to the National Plan for Port Development.

Port Terminals D E S C R I P T I O N Schedule: Paita Salaverr y Chimbote Pisco Iquitos Yurimaguas Pucallpa Ilo Ports Awarding Total Estimated Investment (US$ Million) ** Province of Iquitos III QT 2008 18 Province of Paita III QT 2008 119 San Martin (Pisco) III QT 2008 34 Province of Pucallpa III QT 2008 19 Province of Ilo IV QT 2008 100 Province of Salaverry I QT 2009 40 Province of Chimbote I QT 2009 61 Province of Yurimaguas I QT 2009 20 Total Estimated Investment (US$ MM) 411 Note (**): The investment has been determined according to the National Plan for Port Development.

Investment Opportunities in Airports PROJECT ESTIMATED INVESTMENT (US$ MM) AWARDING TERMS Province Airports- Second Group 157 IV Q 2008 Total Estimated Investment (US$ MM) 157

Province Airports Second group D E S C R I P T I O N Project Description: The project consists on granting in concession to the private sector the province airports design, construction, financing, operation and maintenance. The second group is composed by 6 airports: Tacna, Juliaca, Arequipa, Puerto Maldonado, Ayacucho and Andahuaylas. Puerto Maldonado Andahuaylas Ayacucho Method: Concession for 25 years co-financed by the State. Competition Factor: Lowest amount required for operation and maintenance. Arequipa Tacna Juliaca Estimated Investment: US$ 157 Million, including Sale Taxes-IGV, throughout the concession lifespan. Schedule: Award: 4th QT 2008.

Province Airports Second group D E S C R I P T I O N Estimated Investment* (US$ MM): Airport Total Andahuaylas 13.7 Arequipa 37 Ayacucho 22.3 Juliaca 27.7 Puerto Maldonado Andahuaylas Ayacucho Puerto Maldonado 30.3 Tacna 26.1 Total Estimated Investment (US$ MM) 157 Arequipa Juliaca * Source: Master Plans Tacna

Investment Opportunities in Energy PROJECT ESTIMATED INVESTMENT (US$ MM) AWARDING TERMS Machupicchu - Cotaruse Transmission Line 71.4 I QT 2008 Mantaro Caravelí Montalvo Transmission Line 392.7 I QT 2008 Chilca - Planicie Zapallal Transmission Line 208.25 II QT 2008 Vizcarra - Huallanca - Cajamarca Carhuaquero Transmission Line Total Estimated Investment (US$ MM) 321.3 AWARDED 993.65

Chilca - Planicie Zapallal Transmission Line D E S C R I P T I O N Project Description: The concession for the Transmission Line of Chilca- Planicie- Zapallal aims at strengthening the transmission line that links Chilca to the rest of the National Interconnected Electric System in order to transport energy from the new projects of thermal generation located in Southern Lima Method: Concession as comprehensive project bidding. Estimated Investment: US$ 208.25 MM, including Sale Taxes-IGV Term: Up to 30 years. Schedule: Award: 2nd QT 2008.

Machu Picchu Cotaruse Transmission Line D E S C R I P T I O N Lima Junín Madre de Dios Project Description: Concession, construction and operation for the delivery of energy produced by the 2nd stage of the Hydroelectric Power Plant of Santa Teresa. Huancavelica SET Machupicchu Cusco Apurimac Ica Ayacucho SET Cotaruse Puno Method: Concession through comprehensive projects Estimated Investment: US$ 71.4 MM, including Sale Taxes -IGV Term: Up to 30 years. Arequipa Moquegua Schedule: Award is planned for the 1st QT 2008 Tacna

Mantaro Caravelí Montalvo Transmission Line D E S C R I P T I O N Lima Junín SET Mantaro Madre de Dios Project Description: Concession, construction and operation of a new link at 500Kw. Energy for a first stage at 220 Kw for further increase up to 500Kw. Huancavelica Ica Ayacucho Apurimac Cusco Estimated Investment: US$ 392.7 MM, including Sale Taxes-IGV Term: Up to 30 years SET Caravelí Arequipa SET Montalvo Puno Moquegua Tacna Schedule: Award: 1st QT 2008

Chile Vizcarra - Huallanca - Cajamarca Carhuaquero Transmission Line D E S C R I P T I O N Océano AWARDED Concesión n de la Línea L de Transmisión n Eléctrica Vizcarra - Huallanca Cajamarca - Carhuaquero Colombia Ecuador C.H. Carhuaquero Cajamarca L.T. Vizcarra - Huallanca - Cajamarca -Carhuaquero 511 Km. Brasil Reforzamiento L.T. Carhuamayo Paragsha -Vizcarra Huallanca Vizcarra Paragsha Carhuamayo Project Description: This project consists on granting in concession the Vizcarra Huallanca Cajamarca Carhuaquero Transmission Line to the private sector. The objective of this is to have the National Interconnected Electric System conditioned in order to obtain a more reliable electric power transportation to Northern Peru Estimated Investment: US$ 321.3 MM, including Sale Taxes-IGV Term: Up to 30 years Schedule: AWARDED Pacifico Bolivia

Investment Opportunities in Hydrocarbons PROJECT ESTIMATED INVESTMENT (US$ MM) AWARDING TERMS Gas Pipelines 60~180 I QT 2008 Total Estimated Investment (US$ MM) 60~180

Regional Gas Pipelines D E S C R I P T I O N Project Description: Concession for the design, build, operation and maintenance of transport and distribution of natural gas for Ica. Distribution network 1: Pisco, Ica, Nazca and Marcona Estimated Investment: US$ 60~180 MM Term: Up to 30 years Schedule: Award: 1st QT 2008.

Investment Opportunities in Sanitation PROJECT ESTIMATED INVESTMENT (US$ MM) AWARDING TERMS Huascacocha-Rimac Derivation Project. 50 II QT 2008 (Transfer) Taboada Water Treatment Plant 280 II QT 2008 Total Estimated Investment (US$ MM) 330

Huascacocha Rimac Derivation Project D E S C R I P T I O N Project Description: Design, financing, building, operation and maintenance of an intake system. Regulation and transfer of new water resources. Method: Concession through Comprehensive Project Bidding Competition Factor: Payment for m 3 of water transferred. Term: 30 years. Estimated Investment: US$ 50 MM, including Sale Taxes-IGV Schedule: Call, April 11th, 2007 Award: 2nd QT 2008

TABOADA Water Treatment Plant D E S C R I P T I O N PROJECT DESCRIPTION: Design, financing, construction, operation and maintenance of a new residual water treatment plant prior to discharge (Ave. Nestor Gambeta and Ave. Canta Callao, north of Lima s airport at sea side). TERM: Concession for 25 years METHOD: Concession. ESTIMATED INVESTMENT: US$ 280 MM PLANT CAPACITY: 14 m3 /seg. TECHNOLOGY: Bidders are allowed to present technical solutions within environmental and water regulations STATUS: 8 bidders have expressed their interest in participating in this process.

Investment Opportunities in Agriculture PROJECT ESTIMATED INVESTMENT (US$ MM) AWARDING TERMS Majes- Siguas II 309 To be defined Sale of Lands 2 I QT 2008 Total Estimated Investment (US$ MM) 311

Majes - Siguas II D E S C R I P T I O N PROJECT DESCRIPTION: Majes-Siguas comprehensive project, including the description of its works in its first stage (built and in operation) and works that will be part of the 2nd stage. ESTIMATED INVESTMENT: US$ 309, including Sale Taxes-IGV TERM: Concession BOOT type for 20 years CURRENT STATUS: Financing and promoting consultant selection process underway. SCHEDULE: To be defined

Housing and Construction Investment Opportunities PROJECT ESTIMATED INVESTMENT (US$ MM) AWARDING TERMS Terramar Modular City 768 II T 2008 Total Estimated Investment (US$ MM) 768

TERRAMAR MODULAR CITY PROJECT D E S C R I P TION Project Description: Real estate development that comprises the construction of low income housing, beginning with a minimum of 20.000 homes in the first three years, until completing 100.000 homes in ten (10) years, according to technical specifications identified in the Tender Rules. Method: Public Tender. Estimated investment: US$ 768 million approx. Term: 10 years Status: Tender Anounced. Tender Documents are available from January 31st.. Competition factor: (i) Land value. (ii) Sale price as per Techo Propio home unit. Schedule: The award is expected in the last week of April

Investment Opportunities in Telecommunications PROJECT ESTIMATED INVESTMENT (US$ MM) AWARDING TERMS Rural Broadband Implementation 13 I QT 2008 Rural Telecommunication Implementation Program-Rural Internet 11.5 I QT 2008 Satellite Broadband 45 II QT 2008 Wi-max Project 110 III QT 2008 Total Estimated Investment (US$ MM) 199.5

Investment Opportunities in Tourism PROJECT ESTIMATED INVESTMENT (US$ MM) AWARDING TERMS Kuelap Railway 6.5 III QT 2008 Quistococha National Tourist Park 5.0 II QT 2008 Chaco La Puntilla (Lot E) 0.5 II QT 2008 Chaco La Puntilla (Lot D) 1.5 III QT 2008 Total Estimated Investment (US$ MM) 13.5

Quistococha National Tourist Park D E S C R I P T I O N PROJECT DESCRIPTION: Transformation of the current Quistococha National Park, located in Iquitos Department, into the Theme Park of the Amazonas. It will turn into an attractive tourist product for the Flora and Fauna watching, entertainment activities, and so forth. METHOD: Concession ESTIMATED INVESTMENT: US$ 5 million CURRENT STATUS: Elaboration of Terms. SCHEDULE: Award: 2nd quarter 2008

PROINVERSION The Agency for the Promotion of Private Investment is responsible for encouraging both local and foreign private investment, in order to foster competitiveness and sustainable development in Peru to improve the welfare of the Peruvian people. PROINVERSION becomes a strategic partner for the development of foreign and local private investments in Peru.

Promotion of Private Investment by Private Initiative Services: Information Consulting Management and support Dissemination and presentation to investors Users or requesters: Private sector Existing individual investors Potential individual investors Project promoters Local and foreign missions Lines of Action Private Investmen t Promotion of Private Investment by State Initiative Inclusion of private investment in: State activities Assets Companies Public services Forms: Sales Mixed companies Management contracts Other forms Users or Requesters: National Government Regional Governments Municipal Governments Projects Infrastructure Concession Usufruct Joint ventures Social Issues To have the projects approved by Communities and Regional Governments.

Peru Strong Figures Strategic Location Excellent Opportunities