Peru launches express tax-incentive scheme for El Niño emergency works

The Peruvian government has launched ‘Servicios por Impuestos’ (Services for Taxes), an express version of the ‘Obras por Impuestos’ mechanism designed to accelerate emergency interventions ahead of the 2026-2027 El Niño phenomenon. This extraordinary measure allows private companies to directly fund and execute prevention, response, and rehabilitation services in exchange for tax credits. The new scheme significantly reduces administrative timelines, cutting the prioritization phase from 50 business days to a maximum of 10, and shortening the total process to under 30 business days.

In response to the increased probability of an extraordinary El Niño event, the government has declared a state of emergency in 893 districts across 22 regions and Callao. Ongoing mitigation efforts include the desilting of the Piura River, where the National Water Authority is utilizing 43 machines to remove 500,000 tons of material.

In Arequipa, the Provincial Municipality has acknowledged the removal of trees along the banks of the Chili River as part of riverbed cleaning operations. Officials stated the vegetation was cleared to ensure proper river channeling and to mitigate risks to riverside defenses, noting that the works follow technical guidelines provided by the National Water Authority.