MMG strives to partner with local and national governments in our operating regions to deliver development projects that will bring maximum benefit to our communities.
In October 2019, the Peruvian Ministry of Transportation and Communications (MTC), through Provías Decentralizado, awarded MMG Las Bambas the contract for the financing of the project “Construction of Kutuctay Bridge and access roads – Province of Cotabambas, Apurímac” through the Works for Taxes mechanism. This will represent a total investment of more than 30 million soles (US$8.9 million).
The Kutuctay Bridge will be 130 metres long and will be built on the Apurímac River, between the provinces of Cotabambas (region of Apurímac) and Anta (region of Cusco). The bridge has been requested by local communities for over 50 years and will benefit over 50,000 community members in the region. It will also boost the economy of Kutuckay, Marangarallay, Colca and Huamaniray towns, as well as reduce vehicle transit times by more than two hours between the districts of Coyllurqui, Challhuahuacho, Haquira, Mara and Tambobamba.
The Kutuctay bridge project will be developed thanks to the efforts of the MTC, MMG Las Bambas and the Mayor of Cotabambas, Rildo Guillén.
While the Work for Taxes mechanism has been in place in Peru since 2008, it should be noted that this will be the first project carried out by MMG Las Bambas under the mechanism. It is also the first project to be developed under the Work for Taxes mechanism in the Apurímac region. The Peruvian Ministry of Economy and Finance recently highlighted that Work for Taxes has allowed the development of 68 projects across Peru since 2008, at a total value of 1,585 million soles (US$467.5 million).
For more information about the project click here.
To read more about the work Las Bambas is doing in the Apurimac region, click here.
What is “Work for Taxes”?
Peruvian law No. 29230, titled “Works for Taxes Law” (Spanish: Ley de Obras por Impuestos), is a regulation issued by the Peruvian Government which seeks to accelerate the implementation of priority public infrastructure projects across the country.
The legislation allows for private company, individually or in a consortium, to fund and implement public projects prioritised by Regional and Local Governments and to recover the total amount of investment from its third category income tax later. In turn, the Government pays interest-free financing from its future income from canon, over canon and royalties.
- MMG Las Bambas, MTC and Apurimac government officials at the signing of the project agreement.