Living in Peru : your everyday companion

Scotiabank Peru today announced that it will acquire a 100-per-cent interest in Grupo Altas Cumbres' Peruvian operation, Banco del Trabajo.

This agreement is conditional upon regulatory approvals.

"We are very pleased to continue growing our presence in Peru," said Carlos Gonzalez Taboada, CEO of Scotiabank Peru.

"This new investment is another step forward in Scotiabank's growth strategy for Peru and re-enforces our commitment to be the best bank in Peru, for our customers, for our employees, for our communities and for our shareholders."

Established in 1994, Banco del Trabajo is the 9th largest commercial bank in Peru, with 132 points of sale and total assets of US$430 million at the end of December 2007, representing 1% market share.

Scotiabank - which celebrated its 175th anniversary in 2007 - has been in Peru since 1997. On December 5, 2005 Scotiabank announced a US$330 million investment in Peru as part of the Bank's strategic growth plan in Latin America.

The transaction ultimately combined Banco Wiese Sudameris (BWS) and Banco Sudamericano to form Scotiabank Peru, the country's third largest bank.

"This transaction represents a unique opportunity for Scotiabank to expand in the growing Peruvian micro-enterprise and consumer finance segments," added Gonzalez Taboada.

"By bringing together Banco del Trabajo's successful track record in these segments with Scotiabank's outstanding customer service and consumer finance platform, we are building an organization that meets the unique financial needs of Peruvians throughout their financial life."

The combination of Scotiabank Peru's consumer finance operations with Banco del Trabajo will make Scotiabank Peru the number one bank in the Peruvian consumer finance segment and number two in micro-lending.

The transaction also includes an exclusive co-branding arrangement with Jockey
Plaza, the largest upscale mall in Peru.

Official Press Release

French, Austrian and Czech companies keen to invest in Peru water treatment plants

Peruvian vice-minister of Industry, Carlos Ferraro said that some French, Austrian and Czech companies are interested in investing in the construction of a water treatment plants in Peru. As part of a joint work between Peru's Ministry of Industry and Ministry of Foreign Trade and Tourism, representatives from both ministries met with a group of European investors on the occasion of the V EU-LAC Summit. (ANDINA - click here to read complete article)


Brazilian and Salvadorian companies interested in Peru industrial park

The executive director of the Private Investment Promotion Agency (ProInversión), David Lemor , stated today that there are companies form Brazil and El Salvador, which are interested in developing an industrial park in Lurin, taking advantage of the multi-purpose pipeline Pisco (Ica)- Lurin to transport Liquefied petroleum gas (LPG) of Camisea to Lima. “Theses investors are very interested in this project because the construction of this pipeline generates a very important industrial pole to the development of several enterprises for the low price that the energy will have”, Lemor stated. (ANDINA - click here to see article)

Living in Peru
Israel J. Ruiz


Vereinigte BioEnergie AG, a Germany-based holding company that primarily produces biodiesel and bioethanol to deliver to European petroleum companies, has agreed to work on the development of an irrigation project in the southern provinces of Cañete and Chincha.

The German company, which produces 450,000 tons of biodiesel and 300,000 of bioethanol a year, made an agreement with Compania Electrica El Platanal (Celepsa).

The two companies have planned to irrigate and work 27,000 hectares of uncultivated land in Cañete and Chincha, two provinces south of Lima.

With this new project, two of Chincha's most agricultural areas will be expanded by the private companies.

It was reported that Celepsa had already presented the project to Peru’s Private Investment Promotion Agency (Pro Inversion), explaining that a reservoir would create a surplus of water and provide the necessary irrigation to cultivate the unused land.

According to Pedro Lerner Rizo Patron, the general manager of Celepsa, his company and Vereinigte BioEnergie AG will invest $400 million in the project if it is approved by Pro Inversion.

If authorized, the project would begin at the beginning of 2010.

Living in Peru
Israel J. Ruiz


Starbucks, the largest coffeehouse company in the world, has set its sights on a locale in one of Peru's most touristic regions, Cusco.

The coffee and coffeehouse chain is willing to pay any price for a spot near Cusco city's main plaza, said the owners of the traditional El Ayllu cafe.

The representatives of Cusco's archbishopric and owners of El Ayllu, stated that Starbucks was willing to pay a high price for their corner coffee shop.

The Seattle-based corporation is not the only U.S. company interested in investing in a place near one of the New 7 Wonders of the World, McDonald's and KFC have affirmed that they too are going to invest in property near the Inca Citadel.

Even though real estate prices in Cusco city have doubled and in some cases tripled, McDonald's - the world's largest chain of fast food restaurants, has already set aside the locale where Bohemia restaurant used to be.

The company is negotiating the rental of the establishment with the owners, the Transporters Association of Cusco.

KFC, on the other hand, is to be located on the corner of Cusco's main square.

An inauguration date for the KFC and the McDonald's has not been announced yet but both locales are currently being remodeled.

Living in Peru
Israel J. Ruiz


The entire city of Cusco cheered and celebrated when it was announced that Machu Picchu had been chosen as one of the New 7 Wonders of the World.

Since then, the city and its residents have been able to enjoy certain benefits, such as increased tourism and more investments in the area's infrastructure.

Real estate in Cusco was also affected when the Inca Citadel was named a New Wonder of the World.

The cost of property in Cusco city has doubled and in some cases tripled.

For example, the spacious 40-room house that belongs to Carmen Rosa del Solar has been valued at $2 million. A fair price says the proud owner, considering it is located on Márquez Street in the historic center of Cusco.

The house is approximately 1,000 square meters (10,763 square feet) and is used as an institute for teenagers preparing to apply to universities.

Carmen Rosa has affirmed that it is the perfect place for companies wishing to build a hotel or a shopping center.

She added that it was not likely that she would lower the price of the house per square meter, which is currently valued at $2,000.

Carmen Rosa explained that the square meter (10 square feet) at Cusco's main square was valued at $4,000 per square meter.

Since Machu Picchu was named a world wonder, the cost of real estate has doubled and even tripled, says Lily Quispe Charca, President of the Real Estate Agents Association in Cusco.

Living in Peru
Israel J. Ruiz


Almacenes París, a chain of department stores in Chile, will begin the construction of a department store within the next three months at Jockey Plaza, an upscale mall in Lima.

Yarina Landa, Jockey Plaza's commercial manager confirmed that the department store would begin to be built in the next three months

She also announced the department store would be opened by May 2009.

"Almacenes París will be built on a 12,000-square-meter area and the new store will double the commercial area. Furthermore, parking will increase from 3,000 to 5,000 spaces," said Landa.

The Chilean department store chain is the biggest in its country, bigger than Ripley, and is only second to the Falabella chain.

The fourth largest chain in Chile, which will also be coming to Peru, is La Polar.

Almacenes París is run by the powerful business consortium Centros Comerciales Sudamericanos (CENCOSUD), the company that recently purchased the Wong supermarket chain.

The consortium has stores in Chile, Argentina, Brazil, Colombia and now in Peru.

Landa added that over the following three years, $100 million would be invested in renovating the mall, which is located in the district of Surco.

The first stage of the project involves the construction of a Tottus supermarket and a Sodimac hardware store, both of which belong to the Falabella group.

Chilean Wood Corporation (Corma) and the Society for the Promotion of Manufacturing (Sofofa) showed their concern about the announcement made by the directory of Empresas CMPC, owned by Matte Group, that they will not build a paper plant in Chile due to high energy costs, transferring this investment to Peru, instead.

Corma’s president, Fernando Léniz, stated there are other internal problems in Chile besides the high electricity costs that are causing resentment in the business sector.

“Peru has a better labor environment and a better violence control. Chile is being affected by the idea that pressure groups can satisfy their demands through the illegality and violence”, said Léniz to the Chilean journal “El Mercurio”.

Andrés Concha, general secretary of Sofofa, has a similar opinion. He says that companies are considering several factors, such as stability and how the institutions work.

However, the president of the Confederation for Production and Commerce (CPC), Alfredo Ovalle had a different opinion. He ruled out that Chile had a business tendency to move its investment to other countries, such as Peru.

“We regret that Matte has taken this decision. We don’t think this is a tendency, but a reasonable decision especially when you have to think in long-term investments”, said Ovalle to the Chilean journal.

News source: ANDINA

Peru attracts Israeli investors

Investors from Israel are seeing Peru with new eyes and recognizing stable conditions for an expansive economic process, said Israel’s ambassador to Peru, Walid Mansour. He indicated these potential investors consider that any sector is susceptible for receiving investments due to the current development in Peru, besides its stability and availability of natural resources. “The Peruvian economy is in a sustained growth process and there is country security which is a very important aspect for investors at the moment of taking decissions”, he added. (ANDINA - click here to read complete article)


Cusco, Peru exports fresh artichoke to Europe

The southern Andean region of Cusco exported, on Thursday, the first 120 tons of thorn-free artichoke to Spain, representing the first artichoke consignment exported to Europe, announced a representative of Sierra Exportadora, a government program aimed to help people from Peru's highlands. Artichokes were exported by a group of Andean farmers from the town of Ancahuasi (Anta, Cusco) with the support of the government program Sierra Exportadora. (ANDINA - click here to read complete article)

Foreign Trade Andean Ministers to meet with European Commissioner to boost FTA talks

Foreign Trade ministers of the Andean Community (CAN) will meet with European Commissioner for Trade Peter Mandelson next week in Lima to push negotiations on an Association Agreement, which includes a Free Trade Agreement (FTA) between the CAN and the European Union (EU), Peruvian minister of Foreign Trade and Tourism Mercedes Aráoz said today. “The achievements of this meeting will be addressed to the Heads of State of each country to reach agreements”. (ANDINA - click here to read complete article)


IMF: Peru registers second lowest inflation rate in the world

Peru registers the second lowest inflation rate in the world, only surpassed by France, said today the executive director of the International Monetary Fund (IMF) for Latin America, Javier Silva Ruete. “All the other countries have higher inflation rates than Peru", said Silva Ruete highlighting the solid basis of the Peruvian economy. In a radio interview with CPN, Silva Ruete said that Peru does not have the foreign debt problem that many other countries faced. (ANDINA - click here to read complete article)

Living in Peru
Israel J. Ruiz


Cencosud, the Chilean retailer that purchased the supermarket chain Wong for almost $500 million, announced that it is planning to open a Wong supermarket in Santiago de Chile.

The group, which owns hundreds of supermarkets, several dozen department stores and shopping malls - has also stated that more Peruvian products will be offered in its other stores.

"We need to make what the Wong family did much bigger - in more countries. The idea is to share what we learn in Peru, Argentina, Chile and Colombia with different countries and use it to face the competition," said Horst Paulmann, the President of Cencosud.

Thomas Keller, the corporate manager for Cencosud Supermarkets explained that one of the company's priorities was to have a greater variety of supermarkets in Chile.

He explained that this was why the company was studying the possibility of opening a Wong supermarket in Santiago de Chile.

"There are a lot of Peruvians that live and work in Chile, particularly in Santiago, that's why this year we want at least one supermarket in Santiago," the corporate manager said.