Peru

Promotion of employment intensive technologies in public investments in Bolivia, Ecuador and Peru

This project was carried out by the Lima Subregional Office of the ILO with funding under the ILO/DANIDA agreement. The project commenced its activities in January 1998, and concentrated initially on promoting the EIIP concept, familiarizing potential counterparts in Bolivia, Peru and Ecuador.

In Peru, the project provided technical assistance to the earlier mentioned rural roads programme (PCR), upon a specific request from their side. It concerned the future transfer of responsibilities from the programme to the corresponding municipalities, and its consequences on municipal budgets and the small contractors involved. The study found out that (i) under the current situation, municipalities are unable to finance the required maintenance activities on their road network (and thus unable to contract the enterprises created under the PCR), and lack the possibility to generate tax revenues. Some recommendations are made on modifications of the 'Fondo de Compensación Municipal (government transfer to municipalities), to cover the necessary expenses on road maintenance; (ii) instead of the actual flat rate which is paid to all contractors, there is a need to introduce variable rates that reflect the topography and traffic density of each road; (iii) neither the local authorities nor the enterprises are as yet prepared for a future in which contracts will be awarded through a tendering process. Besides this, the project participated actively in workshops and seminars which allowed it to diffuse its viewpoints. The speech delivered at the PROVIAL congress (August 19, 1998), on the promotion of employment in investments in reconstruction, forms a good example.

Further reading

• Políticas de contratación pública y modalidades de organización legal en Perú, Bolivia y Ecuador - Acceso de las micro y pequeñas empresas a los contratos públicos para obras y servicios - PDF 264 Kb
  José Yeng y Serge Cartier van Dissel, Oficina Subregional de la OIT para los Países Andinos, Lima, 2003
• Estudio económico financiero del mantenimiento de caminos rurales en el ámbito municipal - PDF 205 Kb
  Emilio Salomon, Oficina Subregional de la OIT para los Países Andinos, Lima. 1998