Peru’s largest public-private partnership (PPP) project, the Anillo Vial Periférico (AVP), or Peripheral Ring Road, is now under the management of ProInversión, the country’s investment promotion agency. The transfer from the Ministry of Transport and Communications (MTC) aims to expedite the massive infrastructure project, which is expected to cost over $3.3 billion and potentially alleviate traffic congestion in Metropolitan Lima.
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Key Segment
The AVP is designed with three segments, totaling 34.8 kilometers (approximately 21.6 miles) and encircling Lima from Callao to San Luis. Segment 2, spanning 15.1 kilometers (9.4 miles) through Comas, San Juan de Lurigancho, and part of Chosica, is the longest and requires the completion of two tunnels. This segment is slated for completion between 2030 and 2034, according to previous MTC planning.
Luis Gonzales Yalle, coordinator of the AVP project at ProInversión, stated the agency intends to maintain those timelines. However, a significant challenge remains: securing the necessary land for the project.
The project requires the acquisition of 4,100 properties, with the Peruvian state responsible for expropriating 2,454 of them. A substantial 96% of those properties—2,347 in total—are located within Segment 2. So far, 568 properties have been paid for, with an additional 516 expected to be settled this year. Further acquisitions will require adjustments to the current approach.
To overcome financial constraints, ProInversión is seeking support from the project’s concessionaire. “The State is not efficient at making payments, so we have opted for the concessionaire to finance [our part]. This is a tool allowed by the contract: they pay, and we reimburse them in 5 years,” Gonzales explained. “This would allow us to pay for 900 more properties this year and be close to 1,500.”
An agreement with the concessionaire is expected to be finalized this week.
This arrangement is intended to cover the necessary properties to begin work on Segments 1 and 3, and a portion of Segment 2. ProInversión will use its own institutional resources to address the remaining properties needed for Segment 2.
“In 2025, the MTC had approximately S/ 393 million allocated to the AVP, and now that has been transferred to us. The remaining resources will be provided by the MEF to continue the project and pay the concessionaire,” Gonzales said. The transfer of responsibility underscores the government’s commitment to completing the project.
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Addressing Existing Issues
Gonzales as well indicated that another priority for ProInversión is to address existing delays and interference issues. “This proves true that most tasks are within the deadlines, but there are others that have not been fulfilled by the State. They will require re-engineering to mitigate delays, specifically in interference,” he said.
“Interference” refers primarily to conflicts with existing sanitation and electricity systems along the AVP route. Delays in initiating studies to address these conflicts have been noted.
ProInversión plans to mirror the financing approach used for land acquisition, seeking the concessionaire to fund the interference studies to stay on schedule.
“We are going to sign an agreement with the concessionaire to finance the interference studies and stay within the deadlines. What we do not want is to exceed the operation start dates,” Gonzales indicated.
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Transition to ProInversión
When the transfer was officialized, the MTC reported to ProInversión on upcoming contractual milestones in the first quarter of 2026. The MTC also continued with the sealing of doors and windows of acquired properties for the AVP’s execution, in areas like Independencia and Comas.
Gonzales stated that this process is progressing smoothly. “The EDI for Segment 1 is under review and is scheduled for approval in April. The same is planned for Segment 3 in August of this year, and Segment 2 in January 2028,” he said, reiterating the importance of the second segment of the AVP.
According to Gonzáles, ProInversión had sufficient time to strengthen its technical team and now assume full responsibility for the AVP. Photo: ProInversión.
Gonzales stated that the period it took to transfer full responsibility for the AVP project from the MTC allowed the agency to secure the necessary personnel to properly assume its current role.
“We have hired more personnel to review the EDIs, to be in charge of land acquisition and removal of interference activities. We already had a specialized technical team with experience in construction execution. We developed the AVP contract, and we have known the project for 10 years,” he concluded.
