Peru advances Central Highway project amid financing controversy

The Peruvian government has accelerated execution of the New Central Highway megaproject after the promulgation of Law No. 32696, which had been approved by Congress on June 23. The law declares the highway a public need, guarantees its permanent inclusion in the multi‑annual investment program of the Transport and Communications sector, and establishes a multisectoral coordination commission to oversee physical and financial progress and ensure transparency.

The Ministry of Economy and Finance will manage progressive financing in line with fiscal rules, and the project may be carried out under public ownership, government‑to‑government contracts, or private‑sector participation. At the same time, the Comptroller General has issued a technical observation on supplementary credit law No. 14799/2025, which seeks a credit of 9.596 billion soles to fund the initiative but lacks adequate justification of its macro‑fiscal impact. The oversight body warned that the proposal omits risk‑mitigation mechanisms and links to the government's macro‑economic projections, noting that financing would involve internal bond issuance and funds from the Fonafe and the Banco de la Nación.