The reconstruction of Peru: resources is not the problem but the States capacity to execute
According to Daniel Córdova, from the company Invertir, executing the S/ 25,655 million included in the reconstruction plan, will be difficult if the way of managing projects is not changed.
The Plan of Reconstructions purpose is to recover the material damages caused by the weather phenomenon “el niño costero” in various parts of Peru but can face a problem, which is the ‘heel of Achilles’ of the Peruvian State.
“The main obstacle is undoubtedly the State’s capacity to executre projects through its national, regional and municipal authorities. In Peru, some time ago we realized that there is no problem of financial resources. What we suffer is a lack of public management capacity to execute well and with transparency the available budgets, “said Daniel Córdova, executive president of Invertir.
He added that another obstacle that could affect the project execution is potential corruption.
“It takes enormous resources to execute the reconstruction projects and unfortunately, this is always a temptation to execute poorly and / or at higher costs through illicit associations between corrupting construction companies and corrupt decision makers,” he warned.
In that sense, he added that the Authority for Reconstruction with Changes should contract the private management of public tenders, through first-level audit firms such as EY, PwC, Deloitte, KPMG, among others.
“There is still time. Although, the beginning has been very slow. The North is destroyed and there are still no on going projects. “he said.
He said that executing the S / 25.655 million entered in the plan will be difficult if the way of managing the projects is not changed.
“With the technicians and managers existing in the sub-national governments and even the national, you will not be able to go very far and even less at a quick pace,” he said.
He pointed out that the disaster made clear the importance of urban planning and territorial planning for Peru’s development.
“The growth of cities has been chaotic in Peru. And we do not have the necessary know how to generate these plans that have been ignored in the past. It is essential that everything that is invested is done with a minimum of planning. Not as isolated projects as it is in Peru normally and regrettably, “he stressed.
Interview made for the newspaper Gestión