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Press Office

Informative Bulletin Nยบ 3

INVERSTORS

HAVE CONFIDENCE IN THE

GOVERMENT

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More investment come to

Per u

Economic growth, legal stability and investor confidence in Peru was ratified again with the announcement of several foreign companies to enter the Peruvian market, and expand their development projects in the country.

SHOEI KAITAKU OF JAPAN

BIWATER FROM GREAT BRITAIN

On June 15 last, President Alan García received at the Government Palace the representative of the Shoei Kaitaku Company of Japan, Naoya Minami, who announced that the company plans to invest around 400 million dollars over the next few years in the country.

Another sign of confidence in the country occurred when the head of state met with Adrian White, chairman of Biwater, British Company specialized in design and construction of treatment plants for drinking water.

Minami said that, to begin, they are five projects for economic and social development, including construction of highways, installation of a waste and garbage treatment plant, a water purification plant and the Aquarium project in Callao.

President Garcia informed the representative of the British company announced his interest to invest 140 million dollars in the construction of a seawater desalination plant, to give clean water to the southern districts of Lima.

The Japanese executive stressed that despite the global crisis, Peru is one of the few countries in the region that offers stability and security for investments, hence their interest in entering the domestic market.

As these examples, the president said, we have many involving domestic and foreign capital, and “we are very proud because it means that Peru is seen as an exemplary country, a country that is destined to grow and continue to lead South America.”

President of the republic, Alan Garcia Perez, and representative of the Shoei Kaitaku Company, Naoya Minami.

Chairman of The Biwater British Company, Adrian White, and the president of the republic Alan Garcia Perez.

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LAN PERU That same day, Garcia Perez attended the ceremony of introduction of two new aircraft of Lan Peru Company, with an investment of 120 million dollars. The acquisition of the aircraft responds to the need to address the growing Peruvian market, reflected in an increased demand for domestic and foreign flights.

TOYOTA Toyota Company announced a new investment of 45 million soles for construction in this year of 14 new stores in various parts of the territory. “This investment will give priority to the provinces before Lima as we have seen how these cities have shown great capacity to develop, and we believe that as a private company we have the opportunity to contribute to this process through our investments,” said the chairman of Toyota, Hiroaki Fujiwara. He said that this investment demonstrates and reaffirms his commitment to the development and growth potential of Peru, “a country that is moving towards prosperity and is an example for the region and for the world of what it is capable of achieving.

CORPORACIÓN ANDINA DE FOMENTO Confidence in the Peruvian economy is also endorsed by international financial organizations. The executive president of the Corporacion Andina de Fomento (CAF), Enrique Garcia, announced that this agency will lend this year loans for 1300 million dollars to Peru. “Last year we reached a record level of approvals close to 1800 million dollars. So far this year we have nearly 800 million dollars and we have many projects in the portfolio, highlighting in particular the electric train project, “said Garcia. He estimated that by the end of year, the loans will reach 1300 million dollars, with which the entity will ratify its commitment to the development of the country. “In the case of Peru the support is going to be, is and will be ongoing, both in public and private productive sectors, corporate sectors and small and mediumsized company,” he said. He also said that our country will be one of the few to achieve a positive growth despite the global crisis, thanks to sound politics and that has had for several years.

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The mega project’s works in Huachipa are underway

2.4 Million more people in Lima will have Drinking water Farewell to the sudden water’s cutting off. The population of San Juan de Lurigancho, Lurigancho, Comas, Carabayllo, Los Olivos, Puente Piedra, San Martín de Porres and Callao will ensure the provision of drinking water 24 hours a day. Thanks to the construction of the Huachipa and Ramal Norte Treatment Plant is continuing to progress and it is expected to be completed in December 2010. This is just one of the one thousand 800 drinking water projects that are being developed throughout the country for the benefit of millions of Peruvians, and that is a huge integral and complete peace. The project includes the construction of two tunnels, canals of 27 kilometres, reservoirs and secondary networks. The investment exceeds the 546 million soles, which also shows that despite the effects of the international crisis affecting other countries in the world, the interest in investing in Peru remains.

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Water for more

per uvians

Almost three years after the initiation of the government, the housing sector has begun 1.828 drinking water projects. Have been invested 4.626 Million soles to benefit more than 4 million 387 thousand Peruvians.

Departments Departamento

Number Nro. of Proyectos Projects

Amount Monto of Inversi贸n InversionS/.

Beneficiaries Beneficiarios

Amazonas

50

75,261,466

Ancash

69

173,647,428

Apurimac

20

37,520,799

49,821

Arequipa

58

41,197,356

54,703

Ayacucho

151

50,428,848

66,961

Cajamarca

34

28,877,749

38,345

Cusco

32

31,055,254

41,236

Huancavelica

104

37,483,488

49,772

Huanuco

138

75,388,663

100,103

87

83,000,983

110,211

170

182,878,083

242,830

La Libertad

74

169,361,368

224,882

Lambayeque

85

174,898,763

232,235

Ica Junin

Lima Provincias

177

56,973,770

Lima Metropolitana

98

2,584,081,901

Loreto

54

197,076,227

99,934 230,573

75,651 1,675,674 261,683

Madre De Dios

4

22,756,286

30,216

Moquegua

6

54,849,081

72,830

Pasco

61

63,933,681

84,893

Piura

167

Puno

54

60,024,149

79,702

San Martin

62

65,678,807

87,210

Tacna

18

36,886,329

48,979

Tumbes

30

19,317,161

25,650

Ucayali

25

73,527,431

97,632

TOTAL

1,828

230,201,531

4,626,306,605

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305,667

4,387,392 5


Works began at National Stadium Our old National Stadium will change face and will be modernized. With an investment over 50 million soles, the government through the Peruvian Institute of Sport (IPD) launched the rehabilitation and modernization works of the country’s first sporting arena. With this, Peru reaffirms its intention to become the venue for the 2015 Pan American Games. The works must be completed between October and November 2010. After 57 years of foundation the National Stadium will now have 351 boxes in about 3 levels, more bleachers, an 8-lane

athletic track, football field of natural grass and a grandstand at the bottom. In addition, it will have a new facade; a larger roof will be built all around the stands, a modern system of power and two levels of underground parking with capacity for 740 vehicles. Will be built new dressing rooms, press boxes, fast food areas, elevators, security and evacuation systems. Finished the work, the stadium will hold 50 thousand spectators from Peru and around the world.

Since its foundation in 1952, this is the first time that remodeling works are done. www.presidencia.gob.pe

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Qualified managers to

make efficient State In its eagerness to make public administration more efficient, since 2006 the Government has changed the physical part of the State, has implemented decentralization, the positive administrative silence and has merged the social programs. Now, President Alan GarcĂ­a is determined to change the minds of public officials to make real servers. The first steps in this goal are in the Education sector, where it has implemented a system of training and assessments by which new teachers will join a meritocratic system of teaching, with promotions and higher salaries in recognition of the effort. In the same vein, the Government has convened private sector professionals with experience in the public sector, to participate in the course for candidates for public managers. On last June 12th, President Garcia inaugurated the first course and told participants that “the body of public managers must mean a new awareness in the administration and to revive an awareness that should never die in the administration and operation of the State: awareness serviceâ€?.

Data * In his first government, the President Garcia created the Defense Minister to gather there ministries of the Navy, Air force and War. * In the same way, met at a single institution to the investigative police, the Civil Guard and the Republican Guard. * In this effort, has fallen from 82 to 26 the number of social programs in order to reduce bureaucracy and costs to the state.

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Tractors and agricultural

tools for

Puno

Puno Rural communities are modernized. In his last trip to the altiplano region, President Alan GarcĂ­a delivered 20 tractors and over 76 tools that will benefit more than 24 thousand inhabitants. The tractor delivered to the communities of Cabana, MaĂąazo and Camicachi have a 103 horsepower that will improve the agricultural labor of families in Puno. Among the agricultural implements contained delivered 20 dredges, 20 plows and 18 cultivators, which cover a total of 89 thousand 549 hectares. With this investment of 4 million 475 thousand soles, the central government reaffirms its commitment for the development of the south.

The shortage of these machines will drive a larger area of Andean crops like quinoa and broad beans.

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Government builds more Roads The road integration of the country is moving apace with the construction of major roads. On last June 4th, the head of State, Alan García, opened 131 kilometers of paved road from the South Interoceanic corresponding to stretch InambariAzangaro. The work required an investment of 184 million dollars to benefit one million people. The opening ceremony was held in San Antón district, Puno, located at 3.940 meters above sea level and with a population of 12 thousand inhabitants. The 131 kilometers of paved road are located between the Azangaro district province of the same name (Km 51), and the Macusani district, province of Carabaya (km 182). The total length of the stretch Inambari-Azangaro is 306.90 km and is estimated to be completed in 2011.

CERRO AZUL – CHINCHA ROAD A few days later, on June 9th, the president inspected the progress of the works of construction of the Cerro Azul-Chincha stretch, south of Lima, which is part of the Road Network 6. The network covers a total of 221.7 kilometers. It is subdivided into six sub sections: Pucusana Bridge Entrance-Cerro Azul (72.7 km); Entrance Cerro Azul-Cerro Calavera (1.6 km), Cerro Calavera – Pampa Clarita (18.7 km). Also, Pampa Clarita-Exchange Chincha Alta (33.1 km); Exchange Chincha Alta-junction San Andrés (41.1 km) San Andrés-Guadeloupe junction (54.5 km). The concession contract was signed for a period of 30 years. The amount of planned investment benchmark is 228.6 million U.S. dollars. The Cerro Azul-Chincha stretch is built by the Concesionaria Vial del Peru Company (CoviPerú) with an investment of 58 million 711 thousand dollars. Among the works to run in this section include construction of a bridge over the Cañete River, with a length of 237 meters on both roadways and the construction of a road interchange at Pampa Clarita. Also, the construction of overpass and another bridge in the area of Quebrada Topara.

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Olmos

irrigation: a work for DEVELOPMENT Olmos irrigation is one of the more “giant” works that is running the government for encouraging the development of the country, said President Alan García, during a visit to the project, where he also announced that next February it will be launched the waters of this work through a tunnel of 20 km. “Olmos is one of the greatest works can be done for Peru, is a gigantic work that Peru needs for its development,” said the agent who was accompanied by the head of the Cabinet, Yehude Simon. Garcia said Olmos will deliver 100 thousand hectares of new land for the future of agriculture in Lambayeque and Piura, and it will generate one hundred thousand jobs in activities such as production, processing, marketing and export of products. “I am full of emotion because at the same place we were starting drilling in 1989; later, Mr. Simon, as regional president, organized the work to continue, and now God allows us to see this excellent work which will give jobs

to thousands of Peruvians, “he said to clarify that the project is executed with $ 250 million of investment. He explained that the work is to bring the water from the Huancabamba River to the “Limon” dam of 320 meters wide, 43 meters high and one million cubic meters of soil and concrete. Then, said the water will be sent through a tunnel towards the pampas de Olmos, over 20 kilometers long and 2,500 meters deep under the mountains. “We hope that in July the dam begins to be filled with water, 44 million cubic meters in this part, and in February (2010), where the tunnel is complete, we will come and throw water from the dam through the tunnel of 20 kilometers, and this goes out to the sands of the coast, “he said. Garcia noted that in a first moment, can be irrigated 40 hectares in the Olmos old valley, but also will be created 81 hectares in Lambayeque and 32 thousand in Piura. He added that currently only needs to be drilled a 4-kilometer tunnel.

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“Olmos is one of the most important development centers of the future and investors should see this as an opportunity for the construction of hotels because it will be high performance buildings,” he said.

ALTO PIURA, CHAVIMOCHIC AND MAJES The president said that next to the Olmos project, are underway the Alto Piura, taking part of the water from Huancabamba River, irrigates 19 hectares and creates 20 thousand new. For the south, soon will begin the third phase of the irrigation of Chavimochic and in Arequipa in the new stage of Majes with 20 thousand new hectares. “Peru advances and more than 90 percent of Peruvians know that these are the works that we need: large irrigations, the Interoceanic, the Del Sol highway, more private investment, provide jobs, generate training and let our country to takes off “he said.

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Works in the Costa Verde

Progress of Chorrillos district and the constitutional province of Callao will be united in a short time thanks to the works that run the towns of Magdalena and San Miguel, with the support of the Central Government. The refurbishment works, which also include the construction of a seafront and other works, was inspected by the president, Alan García, and the mayors of the districts mentioned above. The urban development and environmental project of the Costa Verde plans the construction of the road and a seafront with spaces where people can do sports, artistic, cultural and outdoor oceanfront.

Moreover, its operation will have a choice to go from the north of Lima to Chorrillos, along University Avenue and will provide the city with an area of environment to construct new buildings. The investment amounts to 16 million soles. Work began on the second week of March with the scraps withdrawal deposited for years in the area. Personnel and equipment of the Army military engineering supported with fuel by Petroperu were in charge to level the embankment on which the track is built. The first days of June, Magdalena began the works with the construction of the new seafront, paths, benches, streetlights, bike paths, ponds and

sports areas. Moreover, the municipality has built an amphitheater and a circuit for miniature remote control cars. The project also envisages the construction of a sports complex with synthetic grass fields. In Magdalena area will be built three kilometers and a half of seafront and in San Miguel one kilometer and a half, for which both municipalities are joining efforts and coordinating with the central government permanently. This is one of the most important projects that Lima city has, which aims to promote the principal productive activity, social protection and continuity of investments in infrastructure.

116 million soles for works in San Martin and Ucayali As part of its policy to promote decentralization and giving more resources for national development, the government approved two sovereigns bonds over 116 million soles to finance social investment to improve the quality of life in the regions of San Martín and Ucayali.

Martin, “Rehabilitation and Improvement of Departmental Junction Road Bridge Colombia-Shapaja - Chazuta” in the Province of San Martin,” Improving Road Neighborhood: Marginal – Paraiso – Santa Rosa de Otomana - Las Palmeras de Otomina in the district of Moyobamba and implementing network of Blood Services in that region.

For this purpose the Head of State, Alan García Pérez, enacted on June 3rd at the Government Palace two Supreme Decrees authorizing such issue.

In the Ucayali region, authorizing the issuance of domestic sovereign bonds by 50 million 223 thousand 767 soles.

One of the internal rules authorizes the issuance of sovereign bonds by up to 56 million 760 thousand 290 soles to finance 3 social investment projects by the regional government of San

The works to finance are “the construction of potable water and sanitary sewer of Yarinacocha Stage II 2- Sector 10 “in Pucallpa”, the Improving the operational and resolutive capacity of the

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Aguaytía Health Center - Red No.04 Aguaytía - San Alejandro, addition of the Construction of the Agua Blanca bridge, in the district of Campo Verde, in the province of Coronel Portillo. Also, the “Improvement of vehicular traffic in the Amazon Street from Guillermo Sisley Street to Salvador Allende Avenue, in the district of Callería in the province of Coronel Portillo. The issue occurs under the Emergency Ordinance No.040-2009, which approved the issuance of sovereign bonds for up to 2 million 600 thousand soles in one or more stretches during the two year-period 2009-2011, to finance public investment projects of the regional governments.

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Teaching public career: another progress in EDUCATION A new chapter in the history of education was opened. More than 11 thousand teachers across the country took a thorough exam to join the Teaching Public Career where promotions and salaries are set according to ability and merit for their work. “From now on is the merit, training, the quality evaluated by the examinations that will enable each teacher to better earnings,” said President Alan García. Evaluation is a new step that the Government gives towards the transformation and modernization of education to benefit not only students but teachers, because they will keep up to date with ongoing training, and may have access to better wages if they work hard to best.

Data * This year we have opened 20 thousand vacancies for teachers and for 2010 will open 30 thousand vacancies. * Teachers at level 5 can earn up to 5 thousand soles under that the new system. * A teacher who now earns a thousand soles will can double his salary.

Pilot plan

of municipalization in 8 regions of the country State reform is ongoing. The government transferred through a Supreme Decree 55 million 727.974 soles to build the Pilot Plan for municipalization of Education in 14 municipalities in 8 regions of the country. With this money, the educational institutions involved in that plan must cover the operating expenses that require implementation, from June to December of this year. Through this process of decentralization, the government gives new powers to municipalities for education to be-

come the focus of management education in their jurisdictions. It is expected that this year can be included under this plan 500 schools across the country, which constitutes the second stage. In the first stage, the pilot was implemented in 48 districts with a budget of 4.5 million soles, but the municipalities in turn invested additionally 30 million to improve educational infrastructure and for teacher’s training.

The municipalities included in the standard are: Huaraz e Independencia (Ancash), Chincha Alta and Chincha Baja (Ica), Olmos and Motupe (Lambayeque), San Jacinto and Corrales (Tumbes), Las Piedras (Madre de Dios), Morales and Juan Guerra (San Martin), Paucartambo and Simón Bolívar (Pasco) and Carumas (Moquegua).

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147 million soles to modernize

Education

“This is a government for the poorest, the most humble. Peru is growing as never to envy and admiration of other nations, but does so for the neediest. “(President Alan García Pérez, Zarumilla district, province of Juliaca., June 4th) A total of 147 million recently transferred by the government to various regional and local governments to modernize and municipalize education. The Head of State, Alan García Pérez, passed on June 9th at the Government Palace the Supreme Decree authorizing the transfer of 91 million 622 thousand 84 soles to carry out 58 investment projects in educational infrastructure in 11 regional governments, 8 provincial municipalities and 20 district municipalities of the country. Those projects include construction, expansion, improvement, rehabilitation and equipping of various educational institutions. For the 11 regional governments were transferred in total 40 million 743 thousand 646 soles: Arequipa 996 thousand 067 soles, Ayacucho (S /. 638.652), Junín (S /. 6 million 796 thousand 682), Callao (S /. 10 million 644 thousand 336),

Lambayeque (S /. 498 thousand), La Libertad (S /. 3 million 508 thousand 438), Loreto (S /. 3 million 768 thousand 038), Madre de Dios (S /. 3 million 661 thousand 498), Piura (S /. 6 million 555 thousand 100), San Martin (S /. 2 million 213 thousand 716) and Tumbes (1 million 235 thousand 070 soles). Local governments (provincial and local) receive a total of 50 million 878 thousand 439 soles. These are the provincial communes of Fitzcarrald-San Luis, Grau, Huanta, Satipo Ascope, Paita, Sechura and Huallapa. District communes where works are executed in public investment in educational infrastructure are Sicsibamba, Anta, Curahuasi, Tamburco, Ongoy, Santa Rosa, Jesus, Amarilis, Tintay Puncu, Chuquis, El Tambo, Salas, Pebas, La Union, Frías, Carmen de la Frontera, San Miguel in El Faique, Amotape, La Huaca and Cabanillas.

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Citizen arrest goes into effect the first day of

July

The essence of democracy is the full participation and in this context from Wednesday July 1st Peruvians are empowered to exercise the citizen arrest in cases of redhanded, nationally. “Every person may arrest in criminal flagrancy,” says the Act promulgated by the president, on June 8th and will run from July 1st. In such a case should be immediately arrested and deliver the things that constitute the body of the crime to the nearest police The law, passed by Congress, amending section 260 of the Code of Criminal Procedure, referring to citizen arrest. Immediate delivery means the time it takes to arrive at the nearest police station or the police officer who are nearby on the site. In no case authorizing the arrest or deprive of freedom in a public or private place until the surrender to the police authority, “says the Act modified on its article 260. The police shall prepare a record which shall include the delivery and the other circumstances of the intervention.

Police arrest without injuction The rule also modifies Article 259 of the Code of Criminal Procedure, approved by Legislative Decree No. 957, which states that the National Police arrests without a warrant who surprises somebody red-handed. States that there is flagrancy “when carrying out an unlawful act that is current and in fact the author is discovered or when is pursued and captured immediately after a punishable act or when struck with objects or traces that reveal he just did it. If it were a misdemeanor or an offense punishable by a penalty not exceeding two years’ imprisonment, after interrogation and identification of other urgent investigative measures, can be order a less restrictive measure and liberty, the law says in its amended article number 259 º.

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Sutran:

in defense of land

Transportation Users

From the June 17th Land transportation users already have a body set up by the government with the aim of ensuring respect and the compliance with standards and the formalization of this activity at national and international levels. It is the Superintendent of Land Transportation of People, Loads and Goods (Sutran) to regulate, supervise, control and sanction the activities of such transport. Its Creation Act, passed by Congress, was enacted in the Government Palace by the Head of State, Alan GarcĂ­a PĂŠrez, on Monday, June 15 and published the following day in the official gazette El Peruano.

SUTRAN is attached to the Ministry of Transport and Communications. It also has jurisdiction to regulate, supervise, monitor and punish the activities related to transportation of goods nationally and in those services related provided by public or private agents related to the sector. Also, the SUTRAN is responsible for overseeing and monitoring compliance with standards related to traffic and in the National Vehicle Regulation. Its regulation of Organizations and Functions shall be approved within a period of 60 working days, counted from June 17th.

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Bulletin Nº4.  

President's Office.