Transmission Investment Plan (PIT) to support Post-COVID-19 Green Economic Recovery in Peru

The development objective of the Transmission Investment Plan (PIT) to Support Post-COVID-19 Green Economic Recovery in Peru is to increase electricity availability and reliability in selected areas of Peru and support the modernization of the power sector regulatory framework. The project comprises of three components. The first component, strengthening and expansion of substations and transmission lines will finance priority sub transmission investments of the National Fund for Financing of State Companies (FONAFE)-managed public distribution companies included in the transmission investment plans (PITs), which are at high risk of reaching emergency alert status between now and 2023 due to overloaded transformers, electricity demand levels that exceed the capacity of these systems, and risks of disruptions due to flooding, mudslides and other climate-induced shocks, which are likely to result in service disruptions if no investments are made. The second component, technical assistance for regulatory strengthening will provide financing for technical assistance to support the modernization of the electricity market, including regulatory reforms to strengthen the public distribution companies. The third component, project management and capacity building will support the effective project implementation and management, including: (i) project management unit; (ii) fiduciary oversight, including procurement and financial management, and monitoring of environmental and social aspects of the subprojects, including their resilience to climate change; and (iii) project monitoring and evaluation activities.