International Development Grant

Enhancing the Development Impact of Extractive Industries in Peru

Project Number: CA-3-A034599001

Status: Closed

Country/Region:

Peru 100.00%

Maximum Contribution: $17,735,622.00

Start Date: March 25, 2010

End Date: September 30, 2018

Duration: 8.5 years

Project Description

This project contributes to more equitable economic growth for local populations in selected areas where extractive industries are active. In Peru municipal governments receive a percentage of the natural resource royalties from mining and energy projects that operate close to the municipality. This project aims to improve the expenditure management capacities of municipalities receiving large transfers of extractive sector revenues in order to increase access to basic public infrastructure and services. It also aims to harness the potential of the extractive sector to generate sustainable private sector growth and to diversify local economies.

Expected Results

Expected results include: (1) Improved management of extractive industry revenues in selected municipalities; (2) Improved business linkages between rural micro small and medium enterprises (MSMEs) and selected extractive sector firms; and (3) Increased microcredit for rural MSMEs and women and men in selected extractive regions.

Progress & Results Achieved

Results achieved as of the end of the project (September 2018) include: (1) the introduction of improved municipal governance practices that increased transparency and collaboration between individual players within the political process in 38 municipalities. For instance the Investment Management Committees accelerated the execution of public projects and the Municipio al Dia´s website created in the project was transferred to the National Government to support more than 1 800 municipalities in Peru; (2) 284 farmer families implemented new irrigation techniques such as micro-reservoirs and spray irrigation systems to store and use water more efficiently. Bio-gardens with 254 greenhouses were able to grow - all year round - greater varieties of vegetables for nutritious foods which were not previously available in the area. Food insecurity for participating families was reduced by 19%. Results denoted improvements in the most vulnerable groups meaning that families are transitioning from a severe to moderate food insecurity; and (3) the project disbursed 7 829 microcredit loans with 35% of borrowers being women. Microcredit helped to cover part of the expenses to conduct agricultural activities and to respond to the household´s most pressing needs. The project has empowered rural women by strengthening their voices in municipalities’ and local communities’ decision-making spaces.

Key Information

Executing Agency:
IFC - International Finance Corporation

Reporting Organization:
Global Affairs Canada

Program:
NGM Americas

Last Modified:
September 19, 2025

Development Classifications

DAC Sector:

Public finance management 25%
Democratic participation and civil society 25%
Informal/semi-formal financial intermediaries 10%
Business support services and institutions 10%
Mineral/mining policy and administrative management 30%

Aid Type: Contributions to specific-purpose programmes and funds managed by implementing partners

Collaboration: Bilateral

Finance Type: Aid grant excluding debt reorganisation

Selection Mechanism:
Pre-APP

Policy Markers
Level 1 Gender equality
Level 2 Participatory development and good governance
Major Funding (>$1M)
Budget Breakdown
2009-04-01 to 2010-03-31 $17,735,622 CAD
Geographic Information
000
Project Number: CA-3-A034599001