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Press Secretariat Chang Cabinet’s Goals: Grow, distribute and complete more projects National Grand Theater project makes progress Peruvian government issues IDs for children page 16 page 11 9

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Press Secretariat

Chang Cabinet’s Goals: Grow, distribute and

complete more projects

National Grand Theater project makes progress

Per uvian

government issues

IDs for children page 16

page 11

9

Peru’s economic growth and political and legal stability continue to attract large influxes of foreign investment and this is shown in the recent completion and announcement of major projects in petrochemicals, natural gas, phosphate exploitation, steel production, among others. All this will improve productivity and generate thousands of jobs.

With an investment of $500 million, Australia’s Orica Limited announced the construction of one of two petrochemical plants to be built in San Juan de Marcona in southern Peru’s Ica region.

The project was announced after a meeting between company executives and Peruvian President Alan Garcia at the Government Palace.

The petrochemical plant will annually produce 300,000 tons of ammonium nitrate to be sold in the domestic market and the rest exported. The initiative will give autonomy to Peru concerning the production of ammonium nitrate, a key input for the mining industry which currently requires 250,000 tons.

CHILCA THERMAL POWER STATION

On July 16, President Alan Garcia presided over the signing of a $400-million contract for the implementation of the Combined Cycle Conversion Project in the Chilca Uno Power Plant in Chilca, southern Lima. The work will be undertaken by companies GDG SUEZ, through EnerSur, and Korea’s POSCO (Engineering & Construction Co., Ltd).

NATURAL GAS PLANT

On July 9, President Alan Garcia inaugurated the third natural gas-fired power plant of Kallpa Generación SA, which required an investment of $100 million. The implementation of the 196 MW Kallpa III, together with the 180 MW Kallpa I, and the 194 MW Kallpa II, turn the company into the country’s largest thermal power plant, meeting 14 percent of the national interconnected system demand.

SOUTH ANDEAN GAS PIPELINE

On July 5, President Alan Garcia announced that the construction of the 1,300-km-long Kuntur gas pipeline in southern Peru will begin before the end of this year. The pipeline will transport natural gas from the Camisea field to the country’s southern departments.

Peru: Global Investment Destination

BAYOVAR PHOSPHATE PROJECT

THERMAL POWER STATION

ACEROS AREQUIPA

Peru: Global Investment Destination

BAYOVAR PHOSPHATES

President Alan Garcia said that Peru took a “historic step” towards the production of its own fertilizers with the exploitation of Bayovar phosphates after 90 years since the announcement of the project.

The Peruvian leader said the processing plant will be implemented in the first stage with an investment of 1.4 billion soles by Brazil’s Vale do Rio Doce (CVRD).

He noted that the investment amount will also allow removing 238 million cubic meters of rock phosphate and create 2,000 jobs at the same time.

ACEROS AREQUIPA

On August 27, President Alan Garcia inaugurated the renovated and expanded Plant Nº1 of Corporación Aceros Arequipa, which has increased its production capacity from 100,000 to 250,000 tons of liquid steel with an investment of $31 million.

MAKRO STORES

President Alan Garcia witnessed the opening of Makro’s fourth store in Lima. The project required an investment of 22 million soles and created 400 direct and indirect jobs.

The new wholesale market for food and non food products has been built on an area of 21,000 square meters. So far, Makro has stores in different Lima districts including Independencia, Callao and Santa Anita.

ACEROS AREQUIPA

MAKRO STORES

Cabinet Chang will focus on infrastructure development

The Government began its final stage of administration with a new cabinet led by Education Minister Jose Antonio Chang. The goal of the cabinet, including top technical professionals in their fields, is to continue to complete more projects for the poorest.

President Alan Garcia entrusted his new cabinet with the task of “growing, redistributing, decentralizing and completing more works for the poor” in the coming months

and ensure the neutrality of the State and stability of the country ahead of the upcoming elections.

The new members of the cabinet are: Ismael Benavides (MEF), Eduardo Ferreyros (Mincetur), Rafael Quevedo (Minag), Jorge Villasante (Production), Rosario Fernández (Justice), Jaime Thorne (Mindef), Fernando Barrios (Mininter) and Virginia Borra (Mimdes).

Minister Chang has made a substantial change in the nature and structure of education in the country

incorporating the criterion of merit, effort, and constant evaluation; while it is expected to extend this initiative to other sectors from the Presidency of the Council of Ministers.

The government has so far completed 130,000 projects including classrooms, health centers, rural roads, drinking water, electrification and irrigation systems, and the Chang Cabinet aims to deliver 150,000 infrastructure works for the development of populations with fewer resources by July 2011.

Ministers’ goal is to complete 150,000 works before July 2011

Outgoing ministers at the swearing-in ceremony.

•With infrastructure development, the country has more muscles to sustain its economic growth.

•With electricity, water, sewer, telephone services and more access to education and health care, population overcome poverty.

Jose Antonio Garcia Belaunde

FOREIGN AFFAIRS

Eduardo Ferreyros K.

FOREIGN TRADE AND TOURISM

Jaime Fernando Thorne Leon

DEFENSE

ManuelaGarcia C.

LABOR

Fernando Barrios Ipenza

INTERIOR

EnriqueCornejo R.

TRANSPORT AND COMMUNICATIONS

Rosario Fernandez F.

JUSTICE

Juan Sarmiento Soto

HOUSING

Oscar Ugarte Ubillus

HEALTH

Virginia Borra Toledo

WOMEN

Rafael Quevedo FloresAGRICULTURE

Antonio Jose Brack Egg

ENVIRONMENT

Jorge Villasante A.PRODUCTION

Juan Ossio Acuna

CULTURE

Ismael Benavides Ferreyros

ECONOMY AND FINANCE

Pedro EmilioSanchez G.

ENERGY AND MINES

Chief of Cabinet of Ministers and Education Minister

Jose A. Chang

As part of the government’s goal to combat poverty, more than 2.2 million people living in 6,990 towns have gained access to electricity for the first time. The goal set for July 28, 2011, is to supply electricity to more than 12,000 villages.

To that end, President Garcia visited Lambayeque region on August 13 to inaugurate two electrification projects. In Picsi district, he inaugurated a project benefiting 10,102 people in 16 towns in Chiclayo, Lambayeque and Ferreñafe provinces, with an investment of 4.7 million soles.

He also inaugurated the 60/10 KV power transformer at Northern Chiclayo’s Substation (SECHNOR) with an investment of 6.6 million soles. The project provides electricity to the central areas of Chiclayo benefiting 57,260 households or 240,492 people.

A project supplying electricity to 32 towns in Chiclayo, Ferreñafe, and San Miguel was also launched by the Peruvian leader. It will benefit 6,324 people or 1,295 households in the area. The project required an investment of 4.8 million soles funded by the Ministry of Energy and Mines and Electronorte S.A.

IN CAJAMARCA

On August 11, President Alan Garcia visited Cajamarca region to inaugurate three rural electrification projects benefiting nearly 104,000 people who have this service for the first time.

In his address to the country on July 28, the Peruvian leader said that the government’s goal is to provide electricity to over 12,000 people before July 28, 2011. “We have promoted the Luz para Todos (Electricity for Everyone) program, because in the mountains and jungle we can not speak of democracy if they do not have this essential service,” he said.

2.2 million Peruvians have electricity for the first time

HIGHWAY

SCHOOL

Government invested over 2 billion soles in the reconstruction of southern areas.

“Those who want to build their house can do so,” said Garcia Perez as he noted that a series of works have been

carried out to rebuild Peru’s southern region.

The government has invested more than 2 billion soles in the construction of 22 schools, 3 hospitals, as well as water, sanitation and sewerage systems in the last 3 years to rebuild the country’s southern regions affected by the 2007 earthquake.

Additionally, the government built roads, such as Fermin Tangüis avenue, and donated 6000 soles to each family left homeless by the earthquake.

President Garcia said that besides the 6000-sol emergency housing bond, the government granted a 17000-sol subsidy from the “Techo Propio” (Own Roof) program so that families can build their homes.

HOMES

HIGHWAY

SCHOOL

SCHOOL

In June 2010, the government delivered 491 homes through Techo Propio program in Chincha.

This new 221.7-km highway connecting Lima to Ica required an investment of $228.6 million.

The government has invested 14.1 million soles in the

reconstruction of this school.

After the 2007 earthquake, Chincha has a modern school for 1,900 students.

Culture Ministry to promote artistic creation and cultural freedom

The doors to cultural freedom are opened for all Peruvians with the creation of the new Ministry of Culture, which aims to promote artistic inspiration and preserve our rich cultural heritage.

After being named Culture Minister, renowned historian and anthropologist Juan Ossio Acuña said he will make the necessary efforts so that artists can keep on developing their activities and productions in the country.

“Culture is creation and the best expression of freedom of human beings. It is also the most effective way through which people can achieve integration,” he said.

The new Ministry of Culture will develop plans, programs and projects for the promotion, protection and dissemination of

cultural expressions and manifestations in the country.

After upgrading and modernizing 21 emblematic schools in Lima, the government will renovate 186 educational institutions in the country’s regions.

President Alan Garcia announced that schools will be fully reconstructed so that students in regions receive lessons in the same conditions as those in Lima.

In the first stage, a total of 26 and 160 schools will be upgraded in the departmental capitals and provinces, respectively.

PUBLIC TEACHER CAREER

The government policy aimed at reforming the education system in Peru also includes training and evaluation of teachers through the Carrera Publica Magisterial (Public Teacher Career).

On August 22, hundreds of teachers took an exam to enter the first level of the Public Teacher Career.

Nearly 25,000 teachers who passed the exam will benefit from a pay raise based on their own merits.

200 schools will be renovated

Government launched renovation plan for public schools

At the initiative of the Executive branch, the Ministry of Culture was established on July 21 in a ceremony held at the ancient Pachacamac Temple.

After signing the law creating this ministry, President Garcia said it was the “cultural independence day” and

an avant-garde step forward for Peru.

Potable water forVES, Lurin, Pachacamac and … also in Lambayeque

The government has decided to take another step in its fight against poverty. This time it is the turn for Peruvians aged over 75 years.

President Alan Garcia launched the “Gratitud” (Gratitude) pilot assistance program for elderly people.

By issuing an emergency decree, the government approved a 2 million-sol fund to help elderly people who live in extreme poverty.

The program provides a subsidy of 100 soles per person which is not inheritable nor is subject to accrued interest. The initiative will start in the departments of Apurimac, Ayacucho, Huancavelica and Lima.

Beneficiaries of the program include elderly people who live in extreme poverty according to the criteria of Household Targeting System (SISFOH).

“Gratitude” will be administered by the Ministry of Women and Social Development, for which SISFOH will submit the list of beneficiaries to verify their survival status.

“Gratitude” for adults aged over 75 years“This program will reduce the number of forgotten and abandoned elderly people in our country, providing them

with more independence “Address to the Nation (10/07/28)

Potable water and sanitation services are reaching more remote areas of the country, where many low income people live.

In August, the government inaugurated three important projects in Villa El Salvador (VES), Lurin and Pachacamac in Lima, benefiting 13,775 people and another in rural areas of Lambayeque, improving the living standards of 268,000 people.

The initiatives prove that the our country is achieving economic growth with social development, because the dream of having drinking water at home has become a reality and has helped reduced disease burden and improved quality of life.

Each of these projects has contributed significantly in reducing poverty from 48 to 34 percent in the last four years.

For the government, the country’s goal is to have less than 10 percent of poverty by 2021.

At the same time, the government is achieving its objective of allocating more resources in favor of the poor.

•In four years of government, 2.2 million Peruvians have gained access to electricity for the first time.

•Additionally, 4 million Peruvians have potable water services in their homes.

“Bicentennial Plan with concrete objectives”

Peruvian President Alan Garcia proposed a Bicentennial Plan including specific goals like reducing poverty levels to less than 10 percent, providing the highest international standards in education and health systems, building 20,000 km of highways and receiving up to 10 million tourists a year.

For President Garcia, the significant growth pace that the Peruvian economy is experiencing should be reflected in concrete elements with goals and figures aimed at improving Peru in social terms.

He said that these objectives can be achieved with faith, optimism, enthusiasm, willingness and fighting spirit leaving regressive policies aside. “I believe that Peru is capable and is not an eternal tragedy, we are making progress and the core of the plan is faith,” said the Peruvian leader.

* In the last four years about a million illiterate people have shown improvements in reading, writing, and numeracy skills. For this purpose, the government has invested over 290 million soles in the four-year period.

* In the health sector, the government created the Universal Insurance incorporating the entire population of Lima and Callao to the health system in order that they can be treated in public or private centers.

*The government has built, rehabilitated and improved over 11,000 kilometers of highways across the country with an investment of 13 billion soles.

* Since August 2006, over 9 million international tourists have arrived in Peru.

President Garcia‘s target for 2021

Land registration fee to 5 solesIn order to formalize the property of the people with fewer resources, the government ordered the reduction of registration fee for properties located in areas of extreme poverty in the country.

A supreme ordinance established the register of land at a rate of 0.13 percent of the tax unit (ITU), i.e. five soles, for properties valued up to 35,000 soles.

The decision benefits 840 districts in extreme poverty and seeks that these people are incorporated into the formal financial market, with the possibility of reversing its economic and social plight.

Prior to the issuance of this supreme ordinance, the registration fee for a property valued up to 35,000 soles was up to 81.5 soles.

Children with IDs: citizens with full rights

“A citizen is not only that who votes because he/she is old enough to vote and elect, a citizen is that who has rights and is considered part of society” and with identity cards,

children immediately become citizens since birth” Alan Garcia Perez, Comas, August 21

With the National Identity Document (DNI), Peruvian children under 14 are citizens with full rights and access to health services, education and government-run social programs.

This year it is expected to deliver DNIs to over 2 million children between 0 and 5 years of age at a national level,

including 711,000 children in rural zones and 1.2 million in urban areas.Beyond sharing documents, this issue has a revolutionary spirit and a deep historical significance because it means the State can now follow the life of every child from birth, thus ensuring his/her welfare,” said Peruvian President Alan Garcia Perez

after launching the free campaign.

During the event held on August 21 at Comas’ Sinchi Roca club, the head of State symbolically handed over IDs to a group of children: Isabela Acosta (2 months old), Aracelly Bayonne (3 years old) and Andy Torres (6).

Police to ensure

Puyango-Tumbes project will become a reality after 90 years

Security has been reinforced in recent days with a series of government-backed measures including an impressive

deployment of police in the streets, the delivery of 661 vehicles to the National Police, the enforcement of laws against

serious crimes and the restriction of prison benefits.

After announcing that he will personally address the security issue, President Alan Garcia ordered about 3,000 police officers guarding senior state officials to provide security and fight crime in the streets. He also ordered the Interior Minister to reduce the number of police guarding prisons, manufacturing plants and state and private companies.

President Garcia called on National Police (PNP) members to conduct an “intensified work” for public safety

and asked judges and prosecutors to sanction offenders.

In an effort to ensure an efficient police service, the government delivered 661 vehicles to be distributed

among a range of specialized units. The head of State also signed two laws: one amending the Criminal Procedure Code

to extend to 24 hours the police custody for flagrant crimes, and the second restricting prison benefits in case of second offense.

In an unprecedented event, the governments of Peru and Ecuador signed a Joint Declaration for the international bidding process of the binational Tumbes-Puyango irrigation project, which will be carried out after 90 years. The governments also reaffirmed the close ties of friendship and cooperation between both nations.

The signing ceremony was attended by Peru’s President Alan Garcia, Foreign Minister Jose Antonio Garcia Belaunde and Agriculture Minister Adolfo de Cordova as well as Ecuador’s Agriculture, Livestock, Aquaculture and Fisheries Minister Ramon Espinel Martinez, and Ecuadorean Ambassador to Peru, Diego Rivadeneyra.

The project will provide irrigation for 22,000 hectares of land in Ecuador and 19,550 hectares in Peru.

The international bidding process will select a company in charge of completing feasibility studies and project designs, as well as construction work on the irrigation project, a company in charge of supervising and auditing work and an administrator for the project.

The project will require a total investment of US$ 296 million, including 86 million dollars for binational works.

“Never two nations that have been faced by the atrocity of the war, the horror of death, the demagogy abounding in both parts, have quickly rebuilt their love, their history, and that miracle we are achieving

between Peru and Ecuador”

President Alan Garcia (10/08/30)

“In Peru we are making a real revolution of responsible and sustained equality through the expansion of basic services such as health,” said President Alan Garcia after launching the Universal Health Insurance (AUS) for 9.7 million people in Lima and Callao.

The AUS is a very important step because it will reach all Peruvians with or without employment. In the case of Lima, it will unify the systems of Salud, Minsa, EsSalud, Armed Forces and PNP to serve the population in an orderly manner.

The unification will allow having 50 hospitals, 545 medical institutions, 13, 900 beds and 289 operating rooms. There are 44,900 health professionals, including physicians, nurses and technologists.

The AUS will be implemented in Huancavelica, Ayacucho and Apurimac regions as well as in certain districts of San Martin, La Libertad, Loreto, Amazonas, Lambayeque Piura, VRAE, Junin, and Cusco regions.

New Hospitals Institute of Child Health (10/08/02)Construction work is well advanced. The infrastructure is soon to be completed and equipment has already been purchased. It will be ready by this year-end or early next year.

Ica (10/08/06)Inauguration of EsSalud’s New Hospital of High Complexity. It is the fifteenth hospital opened by EsSalud over the past two years.

Andahuaylas (10-08-17)Executive branch donates 28,236 square-meter area to build new Andahuaylas General Hospital.

Puente Piedra (10-08-17)Nucleo Ejecutor or implementing body of Jesus Oropesa Chonta shanty town invested 410,576 soles in the construction of a health post for the local community.

Villa el Salvador (10-08-24)The head of State announced the construction of Great Hospital in Villa El Salvador with an investment of 160 million soles.

Institute of Child Health

Ica Hospital

Universal Health Insurance reaches 9 million Peruvians

It also reaches unemployed population.

150,000 works for a Peru with future

Modern infrastructure and more public services by 2011

In an effort to improve the living standards of low-income people, the Peruvian government plans to execute over 150,000 works during its five-year term, with an estimated investment of 85 billion soles.

So far, the central, regional and municipal governments have executed and delivered more than 130,000 works including drinking water, electrification in rural and urban areas, classrooms, health posts and roads.

Peruvian President Alan Garcia has said that his objective was always to direct resources to the forgotten, unemployed, and sometimes illiterate people living in remote areas that lack quality education as well as electricity and water services.

The $1.4 billion Southern Inter-Oceanic Highway is one of the next projects to be inaugurated, but there are also small-scale works worth slightly over 2,000 soles, such as retaining walls that keep homes from sliding downhill.

WHAT HAPPENED IN AUGUST? • A contract for the improvement of the Nestor Gambetta highway in Callao was signed.

• Free distribution of IDs for children under 14 years of age began.

• Renovated Trujillo airport and Telmo Carbajo and Miguel Grau stadiums in Callao were reopened.

• A total of 104,000 rural residents of Cajamarca had access to electricity for the first time.

• The new Essalud hospital in Ica was inaugurated for the benefit of about 350,000 insured.

Airports and ports to speed up growth

In order to accelerate Peru’s growth and development, our country needs more airports and ports. On August 17, Peruvian President Alan Garcia opened the renovated Capitan FAP Carlos Martinez de Pinillos International Airport in Trujillo, where 12.6 million soles was invested in new infrastructure and equipment.

The new air terminal increases the range of airport infrastructure contributing to the development of foreign trade, tourism, and regional integration. It is also able to meet the current demand for commercial and private flights improving connectivity of Trujillo with the rest of the country and the world.

On August 20, President Garcia witnessed the signing of a contract for the improvement of 28 km of Nestor Gambetta Avenue in Callao to facilitate transport of merchandise arriving and leaving the country through Callao port. The 513.9-million-sol project will benefit more than 2 million people.

During the ceremony, the head of State said that the lands for the construction of the second runway and the second largest terminal at Jorge Chavez International Airport will be given in the coming weeks. “With a large port, a major airport and a great highway, we have development and strength tools. We strive to become this gateway to Peru called Callao even more modern and stronger,” he said.

“The growth brings new challenges and problems, one of them is the infrastructure allowing transport and circulation of new growth; ports and airports are also crucial

to maintain this rate of growth”

Alan Garcia Perez, Trujillo, August 17

Lima’s National Grand Theater will open its doors next year and along with the National Museum, the National Institute of Culture, the National Library and the Ministry of Education will be part of the Great Cultural Complex of the capital, in the district of San Borja. The project is being built next to Museo de la Nación (National Museum) with contributions from the private sector, some 20 institutions and companies operating in the country.

Thereafter, the government has reallocated resources to complete the work, which is now in the second phase of implementation. Spanish tenor Placido Domingo is willing to give a big concert at the venue on the opening day.

National Grand Theater in 201 1

• The theater is built on a 15,000 square meter area. • It will have a capacity for 1,500 spectators.• Besides the fully equipped stage, it will have rehearsal rooms, support rooms, dressing rooms,

restaurants, café and reception halls.

Cultural center was necessary in downtown Lima

The House of Literature, a cultural center created by the government, received 500,000 visitors in 10 months of operation and Peruvian President Alan Garcia welcomed the fact and awarded the 500,000th visitor.

The lucky person was Carlos Majerhua Nunez, a 4th year high school student of Nº 101 Shuji Kitamura in Santa Anita, who received a volume of the “Peruvian Literature History”. The book belonged to President Garcia’s library and was a present of APRA thinker and leader Luis Alberto Sanchez.

It is a record that hardly any other institution has achieved, said the Peruvian leader, who expressed confidence that as the population knows about the existence of this center, more youth, tourists and Peruvians in general will enjoy the exhibitions taking place there.

The young student also received a copy of the “Peruvian Traditions” by Ricardo Palma, and “The Cubs” by Mario Vargas Llosa from the cultural institution.

The House of Literature was open to the public in October 2009 on the initiative

of President Garcia.

The aim was to create an exhibition, reflection, analysis, discussion and research center of national and foreign

literary works.

500,000 people v i s i ted House of Culture

It is built with contributions from the private sector

While the visits of Colombia ’s President Juan Manuel Santos, Panama’s Ricardo Martinelli and Paraguay ’s Fernando Lugo allowed to strengthen bilateral relations with Peru, they also highlighted the enviable economic growth that is achieving our country:

“Colombia admires what President Garcia has done in Peru, for the very positive economic and social indicators that the country has shown in recent years. Colombia and Peru have only common denominators and joint challenges” said President Santos.

Panamanian President Ricardo Martinelli congratulated President Garcia’s government for its “economic growth” especially in times of global crisis. “Panama wants to learn from the economic and social work carried out in Peru, whom we see as an older brother and which one can learn a lot from,” said President Martinelli.

.

Paraguay’s President Fernando Lugo highlighted the road traveled by Peru in the labor, environmental and fiscal management fields. “In these aspects Peru can provide guidance to Paraguay” he said.

P E R U - C O R E A :

“ L O N G - T E R M PARTNERSHIP”

Leaders who visited Peru agreed:

Peru and South Korea have a long-term “alliance” said Peruvian President Alan Garcia, who announced the completion of negotiations on a Free Trade Agreement between the two countries, an agreement that will allow Peru to increase its trade with the Asian nation by 7 billion dollars in 2016.

President Garcia said the signing of the FTA will involve securing legal access conditions of Peruvian exports in agriculture, fisheries and forestry to the Korean market, which comprises 48.5 million people.

The Peruvian leader said he was confident that with South Korea’s technological development, our country can buy at the most appropriate prices, because our alliance is with a large technology provider in the world. For its part, Korea will not only buy minerals, squid, shrimp or fish meal, but also camelid fiber.

“I am confident that this partnership will bear fruit in the coming years and will become stronger over the subsequent decades,” he noted.

The head of State added that, in this way, our country is heading towards the path of development as a “high-speed train” because its free trade are the “rails” that allow growth and international security.

The trade agreement negotiations began in March 2009 in Seoul. In total there have been five rounds of negotiations and two mini rounds that addressed specific issues of market access, rules of origin, temporary entry and cooperation.

Peru’ s economic growth S U R P R I S E S T H E

WORLD