Partnership for Strengthening Regional Investment Capacity in Tumbes, Peru Mozambique, March 2009

Tumbes Region Tumbes Region is located in the north coast of Peru, next to Ecuador. Main indicators Tumbes Region Inhabitants 204,605 Rural population 9.3% HDI 0.6169 Children living under poverty line 22% Chronic malnutrition - children 9% Women (15-20 year) motherhood 17% Access to public water service 73.3% Access to sewerage service 58.4% Source: INEI (2007), UNDP, Foncodes

BPZ’s CSR programs in Tumbes BPZ started generating US$ 3.MM from oil royalties for Tumbes region in 2008. BPZ CSR Activities in Tumbes BPZ has a US$ 1 MM yearly Corporate Social Responsibility (CSR) program, with activities focused on: childhood (Wawawasi), education (scholarships), health, community support and technical assistance, etc. The Regional President requested BPZ in 2007 to start a technical assistance program to improve the use of recently generated oil royalties and to enhance the Regional Government of Tumbes (RGT) officers capacity to manage investment processes. BPZ asked IFC to develop and implement such program.

Objective of the Strengthening program at RGT Improve regional officers´ investment management capacity so that public resources can have a positive impact on the quality of life of Tumbes’ population.

RGT: Challenges No technical capacity to implement strategic planning No historical records from previous administration. Potential new resources from recently discovered oil and gas reserves in our region. How to lead and make this in a different way which will enable Tumbes to get more resources, to be prepare to execute all government allocated funds and to provide a medium and long term vision for this region. Initial budget for investment in the region were no more than $5 MM in 2007, resources were insufficient to make changes for the 204,000 population in the regions.

RGT: Actions Request technical support from new allies: BPZ turned to be an important partners for our region. Jointly work an agenda to make Tumbes visible to new stakeholders: international cooperation agencies, embassies Invite new investors and make Tumbes a friendly partner for potential investments. Regional Government signed cooperation agreement with BPZ and IFC and with other international agencies like PNUD and the Canadian Agency of International Cooperation: Work in different fronts. Get more government funds. Investment budget increased from 5 MM in 2007 to more than $25 MM in 2009 due to better investment preparation in the proposals and subsequent capacity to respond to Central Government requirements. (Agreement with IFC)

RGT: Some results Tumbes is a currently a pilot project for regional initiatives in many fronts: pilot project for the implementation of waste management program; pilot project for the implementation of the current regional investment government program ( to fight against international economic crisis). We now have projects approved and ready for implementation. We have a portfolio of more than $50 MM projects. International investor are expecting to invest in the region in different projects (tourism, agroindustry, oil) $100 MM in 2009-2010. Tumbes is ready to receive more royalties to quickly execute new programs. $ 3MM in 2008, expected $15 MM in 2010 Tumbes has more than 5 international cooperation agencies jointly working to support strategic planning, investment implementation, education, decentralization efforts and project monitoring.

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