Peru let companies build public works and pay their taxes with the bill

Peru's regional and local governments often struggled to turn budgets into finished schools, roads and hospitals. Since the mechanism's implementation in 2009, Works-for-Taxes has let private companies pre-finance and build prioritized public projects, recovering their outlay through income-tax credits.

PROINVERSIÓN, the private-investment promotion agency, manages the pipeline. From 2009 to June 2026, 1,406 interventions worth S/22,384 million were awarded, with 466 companies participating; the first half of 2026 alone set a record of S/5,266 million across 204 public entities and 273 firms.

The design converts idle corporate tax liabilities into on-time public works and shifts delivery risk to firms with construction capability; regional governments took 48-55% of recent adjudicated amounts, concentrating impact outside Lima.