The costs of rebuilding Peru

Over the past week politicians, local and international experts and many more speculated about how much it will cost to rebuilt Peru after the devastating destruction rains, floods and landslides caused across the country.

According to official data, 106 people lost their life, over one million are affected by the damages the natural disaster left, more than 200,000 houses, about 8,000 km of roads, around 600 bridges, nearly 2000 schools and about 600 hospitals are damaged or destroyed and tens of thousands hectares of agricultural lands ruined.

Last weekend Alfredo Thorne, Peruvian Minister of Economy and Finances, estimated the costs for rebuilding the country to about US$ 3 billion. While the consulting firm Macroconsult agreed with this assessment, business and financial consulter Maximixe evaluated the damages to more or less US$ 7 billion.

Juan Mendoza, an economist at the Pacifico University, put a price tag of US$ 10 billion to rebuilding the country. And Peruvian Minister of Defense and Head of COEN, Peru’s National Emergency Operation Center, Jorge Nieto Montesinos, even spoke of US$ 12 billion to US$ 15 billion.

Now, Peruvian president Pedro Pablo Kuczynski (PPK) for the first time put a number on the damages. During a press conference PPK said that the costs for rebuilding and for constructing new infrastructure, that will prevent the extent of future damages due to natural disasters, will accumulate to more or less US$ 9 billion. He stated that the immediate reconstructions costs are about US$ 2 to 3 billion, while an additional US$ 5 to 6 billion are needed over the next 5 years.

The Peruvian Head of State additionally confirmed today that the government is working on a reconstruction plan for the areas affected by the disaster that next to rebuilding destroyed infrastructure has the welfare of the people and economic recovery of the regions in mind. He assured that the plan will be made public in the coming says.