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LatinNews Regional Monitor: Andean Group - 21 May 2019

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In brief: Peru

* Lima’s municipal council has voted in favour of renegotiating contracts for the Línea Amarilla and Rutas de Lima motorway concessions, amid suspicions of irregularities behind the initial contracts to build the roads, which had been awarded to Brazilian construction companies OAS and Odebrecht in 2009 and 2013 respectively. Lima Mayor Jorge Muñoz initially defended the cancellation of the contracts but was asked to reconsider by the current concessionaires, French construction group Vinci and US investment fund Brookfield. In 2016, Vinci took over the Línea Amarilla concession while Brookfield acquired a 57% stake in Rutas de Lima. Ultimately, Muñoz merely backed the renegotiation of the contracts for the management and maintenance of these motorways (including 18 tolls). Former Lima mayor Susana Villarán (2011-2015), under whom Odebrecht’s contract was signed and OAS’s concession extended, is currently under preventative arrest after she admitted to accepting illegal campaign funds from the two Brazilian companies (she denies that these were bribes).