PERU

RISK RATINGS

POLITICAL STABILITY

INFRASTRUCTURE
INSTITUTIONAL

CIVIL UNREST
REGULATORY

TERRORISM
SOVEREIGN
CONTRACT

INTEGRITY

LABOUR

KIDNAP
CRIME

WAR
POLITICAL OPERATIONAL SECURITY TRAVEL

Peru MEDIUM MEDIUM MEDIUM MEDIUM

M M M M L M M M M L L H M

Ene, Apurimac and Mantaro River Valley (VRAEM) MEDIUM MEDIUM HIGH HIGH

M M M M L M M M M H L M M

SECURITY RISK

OVERVIEW

Crime in cities, particularly the capital Lima, is the main security concern for business. Crime rates have risen consistently since 1995. Assaults and
short-term abductions for the purpose of robbery are a risk to personnel. Extreme leftist guerrilla groups pose only a minor direct threat to foreign
companies. Although guerrilla activity increased between 2002 and 2004 across the country, including in Lima, it has steadily declined since, and
subversive groups are now largely confined to a few remote rural areas.

Security risks are elevated in the jungle area where the departments of Ayacucho, Cusco, Apurímac and Junín meet, and in the Upper Huallaga river
valley in Huánaco and San Martín departments, because of the presence of the ultra-leftist Shining Path (SL) guerrilla group.

CRIME

Although low by regional standards, crime rates are high, fuelled by unemployment, poverty, drug abuse and police inefficiency. Street crime, car
theft and break-ins are the main concerns for business. Lima suffers from high levels of violent and petty crime, while there is a threat of banditry in
rural areas. The police force is underfunded and struggles to combat crime. Corruption is also a problem within the security forces, with officers
occasionally involved in criminal activities such as drug-trafficking.

Homicide levels have been rising steadily since 2004 but remain lower than in neighbouring countries. On the rare occasions when foreign nationals
become the victims of homicides and other violent crimes, the primary motive of the assailant is usually robbery.

Drug-trafficking
Drug-trafficking
Peru is a key player in the cultivation of coca and the processing and transportation of cocaine, second only to Colombia. Cultivation levels are
highest in the traditional strongholds of the VRAEM, which continues to account for around half of total production. However, recent years have seen
a sharp increase in cultivation in the northern Amazonian region of the country, in particular the regions of Bajo Amazonas, Putumayo and Marañon
(Loreto department).

Nevertheless, although drug-production undermines the security environment in major producing areas, the illegal narcotics trade has had a
relatively limited impact on the security environment at the national level. Partly because of the SL's virtual monopoly of the drug trade, Peru has
been spared the type of drug-related violence caused by competition between rival trafficking organisations in Mexico and Central American
countries.

TERRORISM

Domestic leftist guerrilla groups, particularly the leftist Shining Path (SL), represent the primary terrorist threat. Most active SL cells operate in
remote locations in Ayacucho, Apurímac, Cusco, Junín, Pasco, San Martín and Huánuco departments. None of the SL's remaining factions is capable of
conducting a sustained terrorist campaign on the same scale as the SL insurgency of the 1980s and early 1990s. The group's urban activities are
largely propaganda-based. In both rural and urban areas, it poses little direct threat to business, despite its ideological opposition to exploitation of
the country's natural resources by foreign companies. Despite media speculation, there is no evidence that the group is making a comeback, though
the government is also unlikely to destroy the remnants of the group any time soon.

WAR

Inter-state conflict is unlikely despite historic animosity with Chile. Peru and Ecuador briefly went to war in 1998 over a long-standing border dispute.
However, the situation has since remained calm, enabling both sides to redeploy troops to their respective borders with Colombia. Renewed
hostilities are extremely unlikely in the short-to-medium term.

The risk of revolution, rebellion, insurrection and coup d'état is low in the next three years at least. Recent successive elections have passed off
relatively peacefully, with minimal claims of irregularities or disputed results. The police and military leadership would be unlikely to intervene in an
attempt to remove the democratically elected government. The SL does not retain its previous ideological aims of overthrowing the government and
imposing a communist state, and is largely confined to strongholds in remote jungle areas, where its capabilities and support are limited.

CIVIL UNREST

Urban and rural workers have long vented their frustration at successive presidents’ unfulfilled campaign promises, especially failure to translate
strong economic growth into improved living standards for ordinary Peruvians. The Kuczynski government faced numerous protests across the
country, with demands ranging from halting coca eradication to calls for the public financing of universities. This has and will continue under
Vizcarra. Most demonstrations are peaceful, but some turn violent.

The government is unlikely to develop improved conflict management strategies to deal with persistent social unrest, which means investors will
continue to face conflict with local communities and interest groups, especially at the local level where government oversight is minimal. In these
areas, communities frequently expect investors to fulfil roles traditionally provided by the state (for example provision of education and health
services) and unmet expectations or perceptions that the investor is exploiting the local population or local land can lead to protests and roadblocks.

KIDNAP

Kidnapping is a problem in Peru, though incidents are only sporadically reported in the press and have become slightly less common since the late
2000s. There is no evidence to suggest that the crime will become more prevalent in the near future.

The majority of financially motivated kidnaps-for-ransom occur in the capital Lima. However, kidnappers do operate further afield – including in
Amazonian and Andean regions – and often have a range of other motives for engaging in the crime. A combination of criminal gangs, indigenous
groups, peasant self-defence organisations (rondas campesinas) and the Shining Path guerrilla group add to the complexity of the kidnapping threat
in Peru. Criminal kidnappers primarily target local nationals, including wealthy businesspeople and their dependants. However, the Shining Path and
indigenous groups have been known to target foreigners and employees working in specific sectors with which they have a grievance.

Express kidnapping (secuestro al paso) became a concern in the early 2000s and remains a problem in urban areas. This crime typically involves the
abduction of an individual who is forced, under threat of injury or death, to withdraw funds from automated teller machines (ATMs – cash machines).
Most incidents take place in Lima, where the trend is partly fuelled by an abundance of unlicensed taxis, which are often used to stage the crime.
Outside Lima, Arequipa (Arequipa region) is another flashpoint for express kidnapping.
Outside Lima, Arequipa (Arequipa region) is another flashpoint for express kidnapping.

Groups
Criminal gangs – some of which are involved in the drug trade – are responsible for the vast majority of kidnaps nationwide, and all incidents in
urban centres. They tend to be financially motivated.

The Shining Path guerrilla group has sporadically engaged in mass kidnaps and made multi-million-dollar ransom demands, though the last
recorded incident attributed to the group took place in 2012. Any future kidnaps are likely to take place in the Ene Apurímac and Mantaro River
Valley (VRAEM), to be infrequent and to attract significant attention from the armed forces.

Indigenous groups occasionally use kidnapping as a tactic to protest against projects affecting their communities and the environment. Such
abductions occasionally involve dozens of victims, including local and foreign tourists and employees of mining or oil companies. These groups
sometimes use the crime as a tactic to gain leverage in negotiations with companies and the government, or to demand the implementation of a
project.

In remote areas, peasant self-defence organisations – who are permitted by law to preserve order and punish crimes within their communities –
have been known to overreach these powers and to unlawfully detain outsiders they suspect of wrongdoing. Victims are rarely harmed in these
incidents, though they may be subjected to public harassment and humiliation.

Authorities
The Kidnap Investigation Division (Divinsec) is the government’s anti-kidnapping unit responsible for dealing with kidnapping cases.

Legislation
The information on this page is based on open source research and does not constitute a legal opinion. Where a legal opinion or comprehensive overview of the
relevant legislation is required, subscribers are advised to seek independent legal advice.

Articles 152 and 200 of the Peruvian Penal Code deal with the issue of kidnapping and extortion. Control Risks does not believe that Peruvian law
prohibits the payment of ransoms or negotiations with kidnappers.

Case studies
A group of armed men on 18 May 2018 kidnapped a businessman in Manantay (Coronel Portillo province). The victim was riding his motorcycle when
the kidnappers intercepted him. They forced him to enter their vehicle. The kidnappers contacted the victim's family and demanded that a ransom
of PEN 100,000 (USD 31,000) be paid within 24 hours, threatening to kill the victim if they failed to make the payment. The incident was then reported
to the authorities, who managed to trace the origin of the ransom calls to Lima (Lima province). Police officers on 19 May rescued the victim. Four
suspects were later arrested.

An unknown number of people on 2 May 2018 kidnapped an eight-year-old boy as he left school in Sicuano (Cuzco province). The kidnappers
contacted the victim's family and demanded a ransom of PEN 200,000 (USD 62,000). The victim's body was found on 12 May in Uyurmiri, Sicuano.
Three suspects were later arrested.
TRAVEL RISK

STANDING TRAVEL ADVICE

STANDING TRAVEL ADVICE

Normal travel can continue.

Seek itinerary- and profile-specific advice prior to travel to the Apurímac, Ene and Mantaro river valley region (VRAEM) due to the risks posed
by guerrilla activity.
Where possible, arrange to be met upon arrival by a local colleague or hotel representative.
Take sensible basic security precautions to mitigate risks posed by petty and opportunistic street crime.
There is a credible risk of kidnap in some urban areas. To mitigate the risk of short-term ‘express kidnapping', be alert to suspicious behaviour,
especially in the vicinity of banks and avoid withdrawing money from automated teller machines (ATMs) in exposed areas after dark. Refuse to
board taxis in which the driver is accompanied and be alert to the risk of persons trying to enter the taxi in which you are travelling.
Expatriates are advised to vary routines, choose a modest model of vehicle and maintain vigilance for signs of surveillance.
If using taxis, use only licensed taxis obtained through your hotel or from official taxi stands within airport terminals.
It is preferable to hire a private vehicle and trusted local driver.
Driving conditions are poor and crime directed against motorists is increasing. Avoid driving alone and minimise travel after dark. Undertake
cross-country travel within daylight hours only.
Be aware that in the event of a road traffic accident, the police may detain one or more parties involved for questioning; do not overreact if
detained.
Public transport is not recommended for business travellers.
Female travellers should not walk or drive alone outside daylight hours.
Avoid all demonstrations and rallies due to a low but credible risk of clashes between demonstrators and the security forces.
Do not attempt to photograph or film government or security force personnel, facilities or assets without the express written permission of the
authorities. Be cautious carrying camera equipment in these areas.
In the event of being involved in a serious crime, contact your embassy immediately for support.

TRAVEL SECURITY

CRIME

Crime rates are high nationwide, fuelled by poverty and police inefficiency.

Opportunistic crime/petty theft

Petty and opportunistic street crime poses the principal risk to travellers particularly in or near hotels, airports, tourist sites and public transport
hubs. Foreign travellers may be targeted because of their perceived wealth. Theft of passports has also been reported on intercity buses.

Foreigners should maintain a low profile and avoid ostentatious displays of wealth. Visitors have also reported attacks when leaving bars and clubs
late at night. Female tourists have been sexually assaulted; adopt sensible security precautions to mitigate this risk, such as not travelling alone after
dark and watching your drink in bars and nightclubs to avoid being drugged.

Visitors should use only registered taxis or transport arranged by their hotel to avert the risk of robbery involving unregistered drivers. Travellers
have been robbed by drivers of unauthorised taxis at Lima's Jorge Chávez International Airport. Personnel should arrange transportation in advance
through local contacts, or contact the information desk at the airport to book authorised taxis. Furthermore, thieves posing as tour operators are
known to approach passengers at the Lima airport.

Foreigners should exercise prudence and should travel in group while visiting the Sacsayhuaman ruins outside Cusco. Armed men have targeted
tourists hiking near the ruins of Choquequirao. Travellers should avoid such areas after dark or at dawn.

Violent crime

Violent crime, including carjacking, assault and armed robbery, occurs regularly in the capital Lima, particularly in deprived and peripheral urban
areas which travellers are unlikely to need to visit.

Residential break-ins/burglaries

Residential burglaries occur usually on the weekends or during holiday periods. Effective security mechanisms at residences can mitigate this type
of risk.

Fraud

Criminals choose their targets after conducting surveillance of local banks and ATMs to rob customers after making withdrawals. Travellers should
Fraud

Criminals choose their targets after conducting surveillance of local banks and ATMs to rob customers after making withdrawals. Travellers should
use those branches that have visible security nearby, such as patrols and CCTV cameras.

Travellers should also only exchange currency at banks, their hotel or exchange bureaus. Promoters on the street advertising currency exchange may
be fraudulent, and these individuals may have the intent to rob or defraud travellers.

Extortion is considered an extensive practice in Peru. Targets of extortion have included transport and shipping firms in the past. Organised criminal
groups have established networks in the north of Peru for this purpose. Furthermore, there have been instances of individuals and smaller groups
dressing as police officers and extort money or land in other areas.

Vehicle theft/carjacking

Carjackers are known to break car windows to rob valuable items such jewellery, purses, or other items. The route along the De la Marina and
Faucett Avenues and Via de Evitamiento along Lima's Jorge Chávez International Airport is prone to carjacking; however, this type of crime can occur
at any traffic light or junction. Drivers should keep doors locked and windows rolled up while travelling and should travel with valuables out of sight.
Unattended vehicles have also been targeted for theft; it is advisable to park in secure and well-lit areas.

Road banditry

Highway robbery is a concern on both main and side roads outside Lima and other main cities. Intercity buses have been targeted for robbery,
including on routes to Lima, Ica (Ica department) and Cusco (Cusco department). Such incidents are also known to take place in the vicinity of main
tourist areas, such as Machu Picchu (Cusco department) and Arequipa (Arequipa department). Bandits tend to be most active at night, dusk and
dawn. The construction of makeshift roadblocks by would-be robbers to halt vehicles is a common practice. If accosted, visitors should always
assume that their assailants are armed and should do nothing to resist or antagonise them, as such behaviour increases the risk of potentially lethal
force being used.

TERRORISM

The threat of international terrorism is negligible, while domestic guerrilla violence has declined steadily since the mid-1990s. However, insurgent
activity persists in remote rural areas; the Shining Path (Sendero Luminoso, SL) and the Tupac Amaru Revolutionary Movement (MRTA) both remain
active, though recent attacks have mostly targeted Peruvian military personnel.

The SL's stated goal is to destroy existing Peruvian institutions and replace them with a peasant revolutionary regime. The group also wishes to rid
Peru of foreign influences. The majority of its support is in rural areas. However, the group has suffered a number of setbacks, including the capture
of its founder in 1992, the arrest of other leaders in 1995 and the government's amnesty programme for repentant terrorists. The group suffered a
major setback to its already reduced capabilities when one of the last remaining members of the SL's original leadership, José Eleuterio Florindo
Flores Hala (alias ‘Comrade Artemio'), was captured in February 2012 by the troops. The new SL is shorter on revolutionary zeal and more motivated
by profits from the drug trade, with fighters having attacked military personnel and government helicopters involved in counter-narcotic operations.
Such activities are focused on the Ene, Apurímac and Mantaro River valleys (officially called the VRAEM), in addition to remote areas of Apurímac,
Ayacucho, Huancavelica, Cusco, Huánuco, Junin and San Martin departments. The group usually targets infrastructure projects and private
establishments in its stronghold areas for extortion.

The MRTA is a traditional Marxist-Leninist revolutionary movement that was formed in 1983 but is currently struggling to remain viable. It has
suffered from defections and government counter-terrorist successes, in addition to infighting and loss of leftist support. The group's objective
remains to rid Peru of ‘imperialism' and establish a Marxist regime, though its activity has dropped off considerably in recent years.

The government has designated a number of areas as Emergency Zones because of insurgent, terrorist or criminal activity. These zones are under a
state of emergency and are unsafe for foreign travellers. The emergency zones include areas in the following departments: Apurímac, Ayacucho,
Huancavelica, Cusco and Junin. More recently, the jungle areas of the Ramón Castilla and Yavarí districts (both Mariscal Ramón Castilla province,
Loreto department) have also been included. The tourist cities of Arequipa, Cusco, Ica, Iquitos, Paracas, Puerto Maldonado, Puno and Trujillo are
excluded. In addition, a number of routes and localities are unstable because of drug trafficking, banditry or criminal/terrorist activity.

SOCIAL UNREST

Demonstrations are common in Peru. Although they pose no immediate risk to foreign nationals, visitors are advised to avoid the vicinity of such
gatherings as a routine security precaution. Protests can exacerbate traffic congestion, especially if they involve roadblocks.

Protests are often motivated by the government's economic policies, labour demands and environmental issues; it is not uncommon for such
demonstrations to descend into violence. The departments of Cajamarca, Cusco, La Libertad, Piura, Moquegua, Arequipa and Puno have been
particularly affected. Bouts of unrest over various concerns are likely to continue to sporadically occur.

Disruptive protests have also been held over issues related specifically to mining in the country. President Ollanta Humala declared a sixty-day state
of emergency in Islay province (Arequipa department) on 23 May 2015 after several months of often violent protests over a local copper mine; at least
four people were killed and hundreds injured through the course of the unrest. Such activities typically involve work stoppages and the blocking of
key thoroughfares and main highways. Areas of the country typically affected by mining issues include Madre de Dios, Apurimac, Arequipa,
Ayacucho, Puno and Cusco departments. Although the majority of mining operations in Peru are government sanctioned, illegal mining is also likely
to persist in parts of the country despite regulations making it a criminal offence and security operations against those involved in such activities.

Coca growers frequently stage protests against the government's eradication of illegal coca plantations in order to deal with the increasing problem
of drug trafficking associated with ultra-leftist Shining Path (Sendero Luminoso) guerilla group in Huánuco, San Martín and Ucayali departments.
Coca farmers allege that the government's operations are aimed at them.
of drug trafficking associated with ultra-leftist Shining Path (Sendero Luminoso) guerilla group in Huánuco, San Martín and Ucayali departments.
Coca farmers allege that the government's operations are aimed at them.

KIDNAPPING

Conventional kidnap-for-ransom remains a credible risk in Lima. However, the number of incidents remains far lower than other Latin American
countries such as Colombia or Mexico, and foreigners are rarely targeted. Wealthy business people and their families within the Asian immigrant
community have been targeted for kidnap, but the victims are targeted for their perceived wealth rather than their Asian origins.

The threat of kidnapping also remains a concern in high risks areas of the Ene, Apurímac and Mantaro River valleys (officially called the VRAEM)
though most victims are locals rather than visitors. In October 2013, the mayor of Vilcabamba (Cusco department) reported that he and around 200
local residents had been temporarily detained and extorted by leftist Shining Path (SL) guerrillas during the opening ceremony for a new public
works project in the town. The victims were reportedly detained for two hours, during which time they were apparently forced to give money to their
captors.

Foreigners in major urban areas are more vulnerable to ‘express kidnapping' (secuestros al paso), in which a victim is held for several hours while
the abductors extort money in a variety of ways. There have been reports of express kidnappers in Arequipa (Arequipa region) stealing their victims'
National Identity Documents and threatening to come and look for the victims at their homes if they report the incident to the authorities.

To mitigate the risk, members should be alert to suspicious behaviour, especially in the vicinity of banks and avoid withdrawing money from ATMs in
exposed areas after dark. Unlicensed taxis are also often used to stage express kidnaps. Visitors should use radio-taxis which are safer; these can be
obtained through their hotel, airport desk or local contact. Travellers should never board a shared taxi nor allow the driver to pick up any other
passenger en route. Expatriates should vary routines, choose a modest model of vehicle and maintain vigilance for signs of surveillance.

CONFLICT

There is currently no danger from civil or external conflict in Peru.

POLITICAL SITUATION

Peru is a democratic republic with the president – elected for a five-year term – acting as both head of state and head of government. The executive
branch consists of the Council of Ministers, a 15-member body appointed by the president and headed by the prime minister. The legislative branch
consists of a unicameral congress of 120 members. The constitution prohibits presidents from serving two or more consecutive terms.

Ollanta Humala, representing the leftist Gana Perú alliance, was elected president in 2011, replacing then-president Alan García (1985-90, 2006-11).
Pedro Pablo Kuczynski of the Peruvians for Change (PPK) party was elected as Humala's successor, having defeated Keiko Fujimori of the Popular
Force (FP) party in the June 2016 presidential election.

Martin Vizcarra is current president. He replaced Kuczynski, who resigned in March 2018 amid corruption allegations against him.

RULE OF LAW

The government maintains effective control over the country. However, remnants of the Shining Path (Sendero Luminoso, SL) and the Tupac Amaru
Revolutionary Movement (MRTA) survive and continue to operate in a limited manner in rural areas.

The government extends its control through a functional administrative system. The military supports the democratic set-up of the government and
the veto power that the military previously held has been removed. The Peru National Police (PNP) is responsible for maintaining internal security
and public order. Lack of professionalism and its alleged involvement in corruption have marred the reputation of the police force. If involved in a
serious incident, contact your local diplomatic representation for support.

Visitors can also contact the English-speaking tourist police service (0800 22221), which is operational 24 hours a day. Travellers are encouraged to
carry photo identification document with them at all times.

The judiciary is independent, but is considered inefficient and marred by corruption. Reforms have failed to make the legal system more effective,
and progress has been further hindered by judicial corruption. The selection procedure for judges and prosecutors is also subject to political
manipulation.

Foreign visitors should maintain conservative attitudes at historic sites as any perceived indecent behavior can result in the individual involved being
arrested.

CORRUPTION

Corruption is a major problem in Peru, despite legislation which is in place to counter graft. The judiciary and police forces are widely perceived to
be corrupt and inefficient, though it is unlikely to pose a direct threat to visitors.

NATURAL DISASTERS

Peru is vulnerable to earthquakes, as it lies in an active seismic zone and tremors are frequently reported. The country also faces a threat from
volcanic activity. The rainy season (December- March) can cause severe travel disruption due to frequent flooding, landslides and rockslides.
Peru is vulnerable to earthquakes, as it lies in an active seismic zone and tremors are frequently reported. The country also faces a threat from
volcanic activity. The rainy season (December- March) can cause severe travel disruption due to frequent flooding, landslides and rockslides.

BUSINESSWOMEN

Foreign women are unlikely to face any serious obstacles on account of their gender. However, criminals tend to consider women easier targets for
robbery. Women should avoid walking or driving alone, particularly at night.

RISK ZONES

RISK ZONES

Ene, Apurimac and Mantaro River Valley (VRAEM): HIGH

Personnel should seek itinerary- and profile-specific advice prior to travel to the Ene, Apurímac and Mantaro river valley region (VRAEM). This area
has been infiltrated by members of the Shining Path (Sendero Luminoso) insurgent group and other criminal elements who have kidnapped
travellers, blocked roads and have been involved in drug trafficking and gun battles with government forces.

ARRIVAL

METHOD OF ARRIVAL

By air

Jorge Chávez International Airport (LIM) in the capital Lima is the main international airport. The other two international airports are Rodríguez
Ballón International Airport (AQP) in Arequipa (Arequipa department) and the Alejandro Velasco Astete International Airport (CUZ) in Cusco (Cusco
department).

Airlines have variable security standards. You may wish to consult the European Commission's website for a list of airlines banned within the EU and
the US Federal Aviation Administration's website for a database of aviation accidents and statistics.

By land

The Pan- American Highway is the main land route to enter the country. Several international coaches operate services from Peru to other Latin
American countries, such as Bolivia, Brazil, Chile, Columbia, Ecuador, Paraguay, Uruguay and Venezuela.

By sea

The main ports are Callao (Callao department), San Martín (San Martín department) and Paita (Paita department). Most cruise liners call at Callao.

IMMIGRATION REQUIREMENTS AND PROCEDURES

Passport Required?Visa Required?Return Ticket Required?

British Yes No Yes
AustralianYes No Yes
Canadian Yes No Yes
USA Yes No Yes
Other EU Yes No Yes

Visa

All nationals referred to in the chart above and Swiss citizens do not require visas if travelling as tourists for stays of up to 183 days. Additionally,
citizens of Latin American and Caribbean countries do not require a visa for stays of up to 183 days in Peru. Visitors can refer to the Peruvian
embassy list for the latest visa requirements.

A business visa is required for all nationals if the purpose of the visit is business. Any business-related unpaid work can be made on a tourist visa.
Business visa holders can also remain in Peru for 183 days. Nationals applying for a business visa must prove their company is solvent. An extension
can be sought at the Dirección General de Contribuciones in Peru. Postal visa applications are not accepted unless submitted through a travel
agency. Processing of visa takes at least 24 hours; it takes longer if authorisation from the immigration office in Lima is required. A transit visa is not
required for individuals continuing their journey by the same or first connecting flight within 24 hours, provided they do not leave the airport. All
nationals should check with the Peruvian embassy/consulate prior to departure to obtain current details of any documentation which might be
required.

Entry/Exit requirements

A valid passport is required by all nationals along with proof of return/onward travel. An Andean Immigration Card is issued on arrival, which
travellers must present prior to departure from Peru. Failure to produce this card at the time of exit could result in delays until a replacement card is
obtained.

Visitors who have entered on a business visa are required on departure to produce certification (Declaración Jurada) highlighting all taxes on income
earned during their stay in the country. This form can be obtained from the relevant Peruvian consulate prior to departure, or on arrival at Lima
Visitors who have entered on a business visa are required on departure to produce certification (Declaración Jurada) highlighting all taxes on income
earned during their stay in the country. This form can be obtained from the relevant Peruvian consulate prior to departure, or on arrival at Lima
airport. Travellers entering with amounts of money exceeding $10,000 or its equivalent in another currency are required to make a declaration on
arrival or departure. Travellers can carry up to a maximum of $30,000 in currency or traveller's cheques to the country. Travellers intending to travel
on to Brazil should note that officials at Brazilian airports and other points of entry require visitors of all nationalities arriving from Peru to produce
the same proof.

Visitors need an entry stamp to enter the country; failure to get this stamp will require travellers to apply for an expulsion order at the Immigration
Office in Lima to leave the country. Foreigners may also require a valid exit stamp from the previous visited country in order to leave Peru.

Procedures

Foreign personnel entering the country on a business visa must register at the Dirección General de Contribuciones upon arrival.

DEPARTURE TAX

Usually included in the airfare.

INTERNAL TRAVEL

BY AIR

Business visitors should travel by air within Peru where possible; travel by other means is usually not recommended because of the long distances
involved and the country's challenging topography. However, the domestic air network is subject to disruption, particularly during the rainy season
(December-March), when delays are common and flights are frequently cancelled without warning. Travellers should allow for delays when planning
an itinerary. There are flights to most departmental capitals.

Civilian aircraft are not targets for guerrilla attacks, but in some remote rural areas the security forces may mistake them for drug-traffickers' aircraft,
specifically in the coca-growing regions of the Upper Huallaga valley (north-eastern Huanuco and San Martín departments) and remote regions on
the eastern slopes of the Andes. With the exception of those in emergency zones, security standards at most provincial airports are poor. LATAM
Perú and Avianca Perú are the dominant national carriers.

BY ROAD

Traffic drives on the right. Several international rental companies such as Avis and Budget have offices in Peru. However, driving in urban areas can
be daunting; local drivers commonly ignore traffic regulations. Foreigners driving at night – particularly women on their own – are considered easy
targets for assault at traffic lights or in parked cars. Many locals drive slowly through red lights at night because of the fear of robbery. Motor
accidents are common in cities. Drivers involved in an accident are liable to be detained by the police until responsibility has been determined. Road
safety standards are poor, as are road conditions, even in cities and on main roads. Visitors should hire chauffeur-driven cars. An International
driving permit (IDP) is valid for one year though it only works in conjunction with the validity of one home driver's license in Peru. It is advised to
liaise with one's respective consulate or embassy to confirm travellers adhere to local laws.

Recommended precautions when driving:

Visitors should not park their cars in the street. Most major avenues employ guards (cuida carros) to watch parked cars, but it is recommended
to use an indoor car park.
Women should not travel alone.
Visitors should not stop for hitchhikers or to help someone in an accident: criminals often use these ruses to trap unwary travellers.
When possible, visitors should avoid driving after dark.
If driving at night, visitors should keep to well-lit city centres, main streets and principal residential districts.
Doors should be kept locked and windows closed as muggers have been known to throw live rats into cars to frighten lone drivers.

An up-to-date map is essential, even if travelling by taxi: many drivers do not know where streets are, while some roads have been renamed so often
that locals may know them by different names.

Travel outside main towns should be undertaken only after reliable security checks have determined the safety of the proposed trip. Travellers may
be at risk from highway bandits and, to a lesser extent, guerrilla activity in remote rural areas. Travellers should keep to main highways and travel in
daylight where possible.

In rural areas, visitors should only travel by day and in convoy. If possible, maintain two-way radio contact with your office. A broken-down vehicle at
the roadside presents an easy target for criminals. Police checkpoints must be obeyed, but be aware that criminals may erect bogus police
checkpoints. They may also block the road or feign a breakdown in order to halt vehicles, especially in poor light, at a bend in the road or on uneven
surfaces. Travel delays and disruption may be experienced during religious holiday periods due to associated celebrations and events, often held in
urban centres, including in the capital Lima and the city of Arequipa (Arequipa department). Overland travel, particularly in mountainous regions,
may be disrupted or delayed during the rainy season (December to March). Persistent heavy rainfall may result in flooding or mudslides, which may
further exacerbate the situation.

BY TAXI

In cities, foreigners should arrange to travel with a trusted driver. If travelling by taxi, personnel should use a reputable company or a licensed car
In cities, foreigners should arrange to travel with a trusted driver. If travelling by taxi, personnel should use a reputable company or a licensed car
provided by a hotel rather than a taxi hailed on the street, as the latter are less safe and the drivers rarely know how to reach the destination. In
Cusco, registered taxis display a blue decal on the windshield issued by the municipal authorities.

There is also a credible risk of criminals posing as taxi drivers and carrying out crimes such as assault or express kidnapping. Travellers should
agree on the fare before getting in as taxis are not metered; local colleagues or hotel staff will be able to give an estimate of the likely cost.
Passengers are not expected to offer a tip to the driver. Travellers should avoid using old taxis, which are at a higher risk of breaking down and also
offer less safety in the event of an accident. Most drivers are unlikely to understand English, and foreign travellers should therefore have their
destination written down in Spanish.

BY TRAIN

Train services operate out of Lima and Cusco (Cusco region), but they are slow and uncomfortable. Criminals on trains often target luggage left in
overhead bins or communal racks for theft. Trains are unsuitable for business visitors, except for the service connecting Cusco to the imperial site of
Machu Picchu.

BY OTHER MEANS

By boat

Boats operate services on various tributaries of the Amazon river, notably between the cities of Pucallpa and Iquitos. However, boat journeys tend to
be long and uncomfortable and are hence unsuitable for business travellers. In addition, visitors are reminded of the threat from river pirates
operating in the Amazon jungle.

By bus

Travellers should avoid using buses due to safety concerns and the long distances involved. Bus accidents occur with regularity, often killing or
injuring passengers. Buses are also considered vulnerable to hijacking and robbery in rural areas. Several acts of armed banditry and bus and
vehicle hijacking have been reported across the Peruvian interior. Many of these cases have occurred within the vicinity of main tourist areas, such
as Machu Picchu, Cusco and Pisco. Foreign tourists have been affected, and some have been raped and assaulted in addition to being robbed.
Bandits tend to be most active at night, dusk and dawn. In several instances, bandits have constructed makeshift roadblocks to stop traffic and rob
traveling passengers.

PRACTICALITIES

LANGUAGE

The official languages are Spanish and Quechua. Many business people speak English, though a working knowledge of Spanish is advisable.
Communicating in Spanish, if not always necessary, is appreciated.

MONEY

The official currency is the Peruvian nuevo sol (sol). US dollars are also widely accepted at hotels, restaurants and shopping centres. Personnel
should exchange money at bureau de change due to the risk of receiving counterfeit currency. Major credit cards such as Visa, MasterCard and
American Express are widely accepted in Lima and other main cities. Personnel should regularly monitor their credit card statements due to the
threat of card skimming. Traveller's cheques are not commonly accepted. ATMs are fairly easy to find in Lima, especially in the Miraflores and San
Isidro districts, though they are less widely available in smaller cities and towns. Visitors should only use ATMs located in secure locations such as
banks,shopping centres and hotels due to security concerns.

CULTURAL ISSUES AND ETIQUETTE

General Tips

Conversations with Peruvians, as with other Latin Americans, will take place at a much closer physical distance than Westerners may be used
to at home. Stepping back from your counterpart may be regarded as unfriendly.
Peruvians consider sitting with your ankle on your knee impolite. However, crossing your legs at the knee is appropriate.
When invited to a Peruvian home, bringing wine, liquor or chocolates is a welcome gesture. Bringing gifts for any children the host(s) may have
is also appreciated.
Men commonly drink whisky, though the national cocktail pisco sour (grape brandy blended with lemon juice, egg white, ice and sugar) is often
served.
Domestic wines are available, but most visitors prefer to drink Chilean or Argentine wines, which are commonly served at bars and restaurants.
Visitors should not take photographs of military installations and respect local customs when visiting historical sites.

Business Tips

Day-to-day business conduct differs little from that in the US and Europe, particularly southern Europe.
Business cards are exchanged and formal introductions made. If the person that you are meeting has been recommended by a mutual friend,
pass on his/her regards.
 Day-to-day business conduct differs little from that in the US and Europe, particularly southern Europe.
Business cards are exchanged and formal introductions made. If the person that you are meeting has been recommended by a mutual friend,
pass on his/her regards.
A little flattery of the host company will also be appreciated. This formality often eases in the evening, when the host may insist on showing
you the town or inviting you to his home.
Men and women shake hands upon introduction and before leaving.
Business cards and company materials should be written in both English and Spanish.
Schedule appointments at least two weeks in advance.
Punctuality is becoming more important, but do not be surprised if your Peruvian counterpart is late.
Traffic is chaotic. Leave plenty of time to get to an appointment, especially during morning/evening rush hours and at lunchtime, or if there
have recently been blackouts that mean traffic lights will not be working.
Great emphasis is placed on personal contact in business. Several lunches may be required before a solid business relationship is established.
Business is generally not discussed over dinner.
Business dress is formal. Men should wear a suit, while women are expected to wear either a dress or a suit.
Peruvians value personal relationships, and relate to individual associates rather than corporations.
Gift giving is normal business protocol in Peru, as it is in most of Latin America.

TIPPING

It is customary to add 10% to restaurant or bar bills for satisfactory service (though some bills already include a service charge). Taxi drivers do not
expect a tip, as fares are generally negotiated in advance. Porters expect some tip.

COMMUNICATIONS

Claro, Telefonica and Vietell Peru provide GSM services. Mobile network coverage is widespread across the country. Payphones can be operated by
coins and prepaid cards. The mail system is unreliable, with letters often arriving late or not at all and a high incidence of theft among postal
workers. However, most major courier services such as DHL and FedEX have offices in the capital Lima. Internet cafes (cabinas) are widely available in
major urban centres.

DIALLING CODES

DIALLING CODES
Country Code 51
IDD Prefix
(International Direct 00
Dialling)
NDD Prefix (National
0
Direct Dialling)

EMERGENCY NUMBERS

Emergency Numbers
Fire 116
Police 105

Ambulance services are not recommended. Contact International SOS for help with your medical situation.

WORKING WEEK

Working week: Monday to Friday

Government office: 09.00-13.00 and 15.00-17.00, except in summer when they close at 13.00
Private offices: 09.00-13.00 and 15.00-17.00 (Monday-Friday); some work half days on Saturdays

CLIMATE

Peru has sub-tropical type of climate. Summer is from December to April, when temperatures rise above 30°C (86°F); Lima is sunny and it seldom
rains. For the rest of the year, it is cloudy in Lima. At its coldest, Lima's winter temperatures drop to 14°C (57°F). In other places, particularly in the
Andean highlands (including Cusco and Arequipa), temperatures at night can drop below zero. Visitors should refer to the meteorological website for
the latest weather information.

ELECTRICITY

Voltage: 220 volts

Frequency: 60 Hz
Voltage: 220 volts
Frequency: 60 Hz

These are the most common plug types used:

BACKGROUND BRIEF

GEOGRAPHY

Peru is bounded by the Pacific Ocean to the west, Ecuador and Colombia to the north, Brazil and Bolivia to the east and Bolivia and Chile to the
south. The country is divided into three main regions: the coastal region, the Highlands and the Amazonian jungle. The country is administratively
divided into 25 departments: Amazonas, Ancash, Apurimac, Arequipa, Ayacucho, Cajamarca, Callao, Cusco, Huancavelica, Huanuco, Ica, Junin, La
Libertad, Lambayeque, Lima, Loreto, Madre de Dios, Moquegua, Pasco, Piura, Puno, San Martin, Tacna, Tumbes and Ucayali. Lima is the capital as well
as the largest city. Other major cities are Arequipa, Callao, Trujillo and Cusco.

RECENT HISTORY

The 20th century saw Peruvian politics characterised by rivalry between the armed forces and their civilian opponent, the American Popular
Revolutionary Alliance (APRA). Military and civilian regimes alternated with each other in a disconcerting pattern of one-upmanship over the
decades.

During the 1980s, Peru was destabilised by the emergence of the Shining Path (SL) and Tupac Amaru Revolutionary Movement (MRTA) left-wing
guerrilla groups. The military campaign and insurgent terrorism amid the population resulted in large-scale human rights abuses. Approximately
69,000 people were killed between 1980 and 2000 during a conflict between guerrilla groups and the government.

Alan Garcia of APRA in 1985 won presidential elections. During this period, the Peruvian economy was marred by hyperinflation and persistent rural
attacks by SL guerrillas. Alberto Fujimori was elected to the presidency in 1990 and subsequently revised the constitution. During his tenure, the SL
was severely compromised by the capture of its leader. After Fujimori resigned and fled to Japan in 2000 amid corruption scandals and constitutional
turmoil, the centrist candidate Alejandro Toledo was elected as the first indigenous president. Fujimori in November 2005 arrived in Chile, where he
was arrested and from there he was extradited in September 2006. The former president in April 2009 was sentenced to 25 years' imprisonment on
charges of abduction and murder during his tenure.

In elections in April and June 2006, Alan Garcia regained the presidency with 53% of the vote, defeating his principal opponent, Ollanta Humala, of
the Union for Peru Party (UPP), who gained 47%. Humala became president after the June 2011 presidential election, defeating Keiko Fujimori,
daughter of Alberto Fujimori. Pedro Pablo Kuczynski of the Peruvians for Change (PPK) party was elected as Humala's successor, narrowly defeating
Keiko Fujimori in the June 2016 presidential election by just 0.25% of the vote.

Kuczynski resigned on 21 March 2018, days before the congress was scheduled to hold an impeachment vote against him. The impeachment vote –
the second of its kind against Kuczynski after he survived a first vote in December 2017 – is attributed to corruption claims which had surfaced in
connection with the leader. Martin Vizcarra, former vice president and ambassador to Canada, was sworn in as the country's president on 23 March
2018.

DIPLOMATIC REPRESENTATION

Embassy of Sweden (in Chile) Phone: +56 2 29401700

Nueva Providencia 2353, 4th floor, San Ramón tower, Providencia Fax: +56 2 29401730
Santiago de Chile Email: ambassaden.santiago-de-chile@foreign.ministry.se
Chile Website: http://www.swedenabroad.com/es-ES/Embassies/Santiago-de-
Additional nationalities represented: No Geography Chile/

Embassy of United Kingdom Phone: +51 1 6173000

Torre Parque Mar, Avenida Jose Larco 1301, 22nd floor, Miraflores Fax: +51 1 6173100
Lima Email: belima@fco.gov.uk
Peru Website: https://www.gov.uk/government/world/organisations/british-
Additional nationalities represented: No Geography embassy-peru
Additional nationalities represented: No Geography embassy-peru

Embassy of Germany Phone: +51 1 2035940

Avenida Dionisio Derteano 144, Alto Caral building, 7th and 8th floors, Secondary Phone: +51 997 576 200
San Isidro Fax: +511 422 48 13
Lima Email: info@lima.diplo.de
Peru Website: http://www.lima.diplo.de
Additional nationalities represented: No Geography

Embassy of Italy Phone: +51 1 4632727

Avenida Giuseppe Garibaldi 298 (ex Gregorio Escobedo), Jesus Maria Secondary Phone: +51 997 232 073
Lima Fax: +51 1 4635317
Peru Email: ambasciata.lima@esteri.it
Additional nationalities represented: No Geography Website: http://www.amblima.esteri.it

Embassy of United States Phone: +51 1 6182000

Avenida La Encalada, block 17, Surco Fax: +51 1 618-2722
Lima Email: Lima_WebMaster@state.gov
Peru Website: http://pe.usembassy.gov/
Additional nationalities represented: No Geography

Embassy of Spain Phone: +51 1 2125155

Avenida Jorge Basadre 498, San Isidro Secondary Phone: +51 995 655 898
Lima Fax: +51 1 4402020
Peru Email: emb.lima@maec.es
Additional nationalities represented: No Geography Website:
http://www.exteriores.gob.es/Embajadas/Lima/es/Paginas/inicio.aspx

Embassy of Belgium Phone: +51 1 2417566

Avenida Angamos Oeste, 380 Miraflores Secondary Phone: +51 999 96 5550
Lima Fax: +51 1 2416379
Peru Email: lima@diplobel.fed.be
Additional nationalities represented: No Geography Website: http://peru.diplomatie.belgium.be/es

Embassy of China Phone: +51 1 4429458

Jiron Jose Granda 150, San Isidro Fax: +51 1 4429467
Lima Email: chinaemb_pe@mfa.gov.cn
Peru Website: http://pe.china-embassy.org
Additional nationalities represented: No Geography

Embassy of South Africa Phone: +51 1 6124848

Avenida Victor Andrés Belaunde 147, Edificio Real Tres 3, Office 801, San Fax: +51 1 4223881
Isidro Email: general.peru@dirco.gov.za
Lima
Peru
Additional nationalities represented: No Geography
Additional nationalities represented: No Geography

Embassy of Australia Phone: +51 1 6300500

Avenida La Paz 1049, 10th Floor, Miraflores Fax: +51 1 6300520
Lima Email: consular.lima@dfat.gov.au
Peru Website: http://peru.embassy.gov.au/
Additional nationalities represented: No Geography

Embassy of Japan Phone: +51 1 2199500

Avenida Javier Prado West 757, 16th Floor, Magdalena del Mar Secondary Phone: +51 1 2199538
Lima Fax: +51 1 4630302
Peru Email: consjapon@li.mjofa.go.jp
Additional nationalities represented: No Geography Website: http://www.pe.emb-japan.go.jp

Embassy of France Phone: +51 1 2158400

Avenida Arequipa 3415, San Isidro Fax: +51 1 2158441
Lima Email: france-chancellerie@ambafrance-pe.org
Peru Website: http://pe.ambafrance.org
Additional nationalities represented: No Geography

Embassy of Switzerland Phone: +51 1 2640305

Avenida Salaverry 3240, San Isidro Fax: +51 1 2641319
Lima Email: lima@eda.admin.ch
Peru Website: http://www.eda.admin.ch/lima
Additional nationalities represented: No Geography

Embassy of Finland Phone: +51 1 2224466

Calle La Santa Maria 120, San Isidro Secondary Phone: +51 1 2224480
Lima Fax: +51 1 2218286
Peru Email: sanomat.lim@formin.fi
Additional nationalities represented: No Geography Website: http://www.finlandia.org.pe/

Embassy of Canada Phone: +51 1 3193200

Calle Bolognesi 228, Miraflores Fax: +51 1 4464912
Lima Email: lima@international.gc.ca
Peru Website: http://www.peru.gc.ca
Additional nationalities represented: No Geography

SCENARIOS
Vizcarra takes the reins, but operational challenges persist
MOST LIKELY
President Martin Vizcarra maintains a pro-
investment stance and sees out the
remainder of his term.
 
However, progress in updating the
regulatory environment is slow as Congress
blocks certain legislation.
 
Bureaucratic delays and inconsistent
policies continue to pose an operational
challenge to key investment projects.
See below for more detail
MOST LIKELY
Market-friendly stance hindered by political spats
Overview
Despite the fact that Vizcarra is committed to
maintaining market-friendly policies, and he
promotes various existing and new free-
trade agreements which bind the
administration to a business-friendly policy
framework, he is not the only political player
with power. To this end, not all political
players work to advance much-needed social,
political and security reform, with some
placing personal ambitions over aiding
reform.
The investigations into Keiko Fujimori's own
finances make her Popular Force (FP) – the
biggest party in Congress, but with 59 of 130
seats it does not have a majority –
increasingly desperate, with little thought as
to how this might impact its own electoral
prospects in 2021 for the worse. Increasing
divides and internal spats within the FP also
lose Keiko support, while the divide in the FP
between Keiko and her brother Kenji
worsens, with the two more interested in
their own political popularity instead of
advancing a steady and clear reform agenda.
This makes the party increasingly
unpredictable, with legislation only possible
on a case-by-case basis and the FP and other
minority parties only really thinking about
how to build their own support. This occurs
to a greater extent in late 2018 and early
2019 as Vizcarra’s initial surge in popularity
begins to decline, and the FP feels that it can
gain votes by criticising the government.
CREDIBLE
ALTERNATIVE OUTLIER
Vizcarra successfully allies with Congress Congress makes governability impossible
on a number of pro-investment measures. and Vizcarra is forced to call early
elections.

Vizcarra is able to introduce legislation to The government loses policy direction and
make sweeping changes to improve the concentrates on trying to solve political
regulatory and integrity environment. crises.

Investment increases but a number of Foreign investment stalls and the overall
community conflicts persist. regulatory, operational and security
environment deteriorates.
See below for more detail See below for more detail
Scenario Developments Specific Issues
Governability remains an issue. Despite the MED Political Stability
fact that Congress grants emergency
Despite increasing criticism of Vizcarra by
legislative powers to Vizcarra in May which
Congress, an unscheduled change of
allow for 60 days of legislation without
government does not take place. Vizcarra
consultation with Congress, this is not a
manages to pacify some sectors of the
carte-blanche for the rest of his term. In fact,
population, but his approval ratings fall
the governability challenges which plagued
steadily to around 40%.
Kuczynski’s (2016-18) first few months in
office re-emerge in late 2018 and early 2019
MED Regulatory
as Congress criticises Vizcarra and blocks
certain legislation (which is not popular with Measures to improve the regulatory
the majority of the population). As such, environment are largely stalled, and while
Vizcarra is unable to touch any controversial the government does not want to detract
legislation given this lack of support, both investors necessary for economic success, it
from the public and within the political also does nothing to entice them.
sphere.
MED Integrity
Vizcarra remains committed to anti-
Government and congressional
corruption measures. Kuczynski’s
investigations of contract awards highlight
resignation was directly related to corruption
persistent integrity risks. As well as putting
allegations against him – Vizcarra is widely
investigated contracts on hold, corruption
perceived to have avoided being tainted by
investigations cause significant delays in the
the corruption allegations that have
awarding of new contracts.
undermined most high-level politicians, such
as Kuczynski and opposition leader Keiko
Fujimori. Vizcarra is also keen to show
himself as pro-integrity, in a bid to distance
himself from his predecessor. While
investigations into the political class
continue irregularly as a result of political
interest and interference form influential
politicians, focus continues to affect the
business community. As a result,
reputational risks for companies continue to
2019 as Vizcarra’s initial surge in popularity
begins to decline, and the FP feels that it can
gain votes by criticising the government.
Legislation is challenging, but not
impossible. Vizcarra is forced to prioritise
policies that have significant popular
support, or those in which he and the FP are
aligned, implementing measures to
streamline bureaucratic procedures to
ensure that delays in obtaining relevant
permits and licences are less of a hold-up for
investors – something that investors’ state is
a key obstacle. The economy picks up,
reaching 5% in 2019. Vizcarra also makes
further attempts to deal with persistent
social unrest by generating plans for
improved conflict management strategies,
and increased transparency with major
investment projects such as the Southern
Gas Pipeline, which is opened up for bidding
in 2019.
Large-scale corruption scandals that came to
light in 2016, as a result of other regional
investigations – such as the ‘Car Wash’
investigation that began in March 2014 in
Brazil – continue to dominate the integrity
environment. Vizcarra seeks to rid public
institutions of corruption, including the
judiciary and the Office of the Comptroller
General. However, he is only able to push
through limited anti-corruption legislation;
he is prevented from taking a comprehensive
approach by Keiko whose own party
members prevent some of the more far-
reaching proposals given their own potential
implication in such matters.
politicians, focus continues to affect the
business community. As a result,
reputational risks for companies continue to
increase. Revelations of corruption also
continue in the coming months, not least by
Brazilian infrastructure company Odebrecht,
and continue to implicate a number of
officials. Companies also find themselves
coming increasingly under the eye of the
investigation. In this light, bidding processes
on investments face more scrutiny, and
investors are expected to demonstrate their
transparency. However, this is exceptionally
difficult to implement at the local level,
resulting in a more confused environment
for investors who are unsure exactly of what
protocol to follow.
The economy continues to grow despite
governability challenges. The government
needs the economy to maintain strength in
order for it to win back much needed trust
and popularity – and there are a plethora of
projects to be auctioned off in 2018 and
2019, most notably in the mining,
infrastructure and oil and gas sectors. While
projects gather momentum throughout the
year, a great number remain stalled at least
in the first few months of Vizcarra's mandate
as he finds his feet.
Small efforts to improve the bureaucratic
framework are insufficient to mask broader
issues. Vizcarra is unable to gain the
majorities needed to pass more ambitious
legislation and he is forced to compromise
on issues such as tax incentives and the
formalisation of small- and medium-sized
businesses into the formal economy
(approximately 70% of workers work within
the informal economy). Furthermore, the
bidding on the construction of the Southern
Gas Pipeline remains stalled until 2019,
highlighting the government’s inability to
convince investors of its strong potential as
an investment destination.
Community opposition to extractive and
infrastructure investment projects remains
a key obstacle. Environmental activists, local
communities and indigenous groups view
the government’s drive to introduce
regulatory improvements as detrimental to
their wellbeing. Vizcarra attempts to stem
unrest and show that he is in line with
communities by encouraging companies to
play a more participatory role in community
dialogue and comply with social
responsibilities. However, this is only
partially effective, and communities remain
disappointed with the economic
opportunities derived from these projects
and protests, strikes and blockades remain a
consistent feature of the operating
environment. This is particularly problematic
in Arequipa, Apurímac, Cusco and Junín,
where mining expansion and infrastructure
projects are underway.
The current pattern of security threats
persists; despite lower petty crime levels, it
remains the main threat to businesses
except in the south, where the Shining Path

CREDIBLE ALTERNATIVE
Regulatory risks reduced through Congressional alliance, Keiko undermined
Overview
Keiko Fujimori is well aware of rapid
progress by prosecutors and judges in the
corruption cases against herself and other
members of the FP which are undermining
their electoral and political position. Keiko is
increasingly unpopular, mainly because of
alleged wrongdoing, but also due to
continuous attempts to block legislation and
undermine government reform.
Her FP party is also worried about the effects
that its combative style has on their
popularity, and Keiko is increasingly side-
lined. Her brother, Congressman Kenji,
maintains a more moderate stance, and
more of the 59 FP legislators leave the FP
bench to join Kenji or other minority groups
(following foiled attempts to remove him
from power). Kenji is conscious of the
importance of maintaining a conciliatory
stance in order to win support ahead of the
2021 elections, and of the fact that the bitter
feud with his sister is losing him popularity –
he therefore aims to show that he is
removed from the conflict and putting the
country’s interests first. He is well aware that
his sister lost significant support over her
continuous attempts to undermine
Kuczynski, and the fact that Congress is
perceived by the majority of the population
to be corrupt, inept and self-serving.
Meanwhile, Vizcarra is able to win over some
popular support through his legislative
moves, which stabilise economic growth. In
mid-2018, the government uses emergency
legislative powers to force past the
bureaucratic obstacles which most
persists; despite lower petty crime levels, it
remains the main threat to businesses
except in the south, where the Shining Path
(SL) guerrilla group remains active. Crime,
targeted killings and extortion are reduced
thanks to Vizcarra’s anti-crime policies which
see increases in police presence in critical
areas, particularly in the Lima Metropolitan
Area. More frequent states of emergency are
declared in crime hotspots in an effort to
lower crime levels. SL guerrillas remain
limited to their only remaining stronghold, in
the Ene, Apurímac and Mantaro river valley
(VRAEM) in the south. The SL’s continued
participation in the country’s booming
cocaine trade means the group retaliates
against the government’s increased counter-
narcotics activities by attacking vulnerable
state security forces and occasionally
targeting private assets in the VRAEM.
Scenario Developments Specific Issues
Foreign investment resumes in 2019 LOW Regulatory
following the implementation of measures
The government’s pro-business policy
to expedite investments. The government
translates into effective implementation of
prioritises business interests and removes a
measures to expedite necessary licences and
number of bureaucratic requirements which
permits.
are currently stalling investments in a
number of sectors. The government also
LOW Integrity
succeeds in attracting trade interest from
other countries in the region as a result of The impact of corruption scandals in Brazil
reduced bureaucratic requirements. continues to hit Peru, leading to
Furthermore, Vizcarra prioritises the investigations of companies involved in both
construction of the Southern Gas Pipeline countries. SPPCC investigations into the
and a new operator begins work on the scandals continue, but the enhanced anti-
pipeline in 2019 after extensive government corruption framework reduces integrity risks
efforts to attract financers. In addition, the to business.
measures (alongside other factors such as
significant returns from mining and LOW Sovereign
infrastructure projects) are partially
Despite the rise in spending on social
responsible for a return to the higher growth
development programmes, infrastructure
experienced in the years prior to 2013, with
projects and improvements in the
GDP increasing to 5%.
bureaucracy, the country’s fiscal position is
not compromised. This is the result of a
The government engages with
comfortable debt to GDP ratio, as well as
environmental stakeholders to make them
medium-term improvements in fiscal
part of the certification and licencing
proceeds from extractive projects as a result
approval process, establishing the
of higher investment.
credibility of the new framework.
Environmental critics and the political
opposition view the government’s efforts to
improve the investment regulatory
framework as detrimental to environmental
protection, but the government works to
address such concerns, prioritised by
Vizcarra in 2018. The environmental
framework remains credible, and receives
praise from some groups that traditionally
oppose high-impact investment projects.
mid-2018, the government uses emergency
legislative powers to force past the
bureaucratic obstacles which most
businesses state hinder effective business
operations. Following the expiration of
emergency powers, the government is able
to continue the pace of reform.
Simultaneously, and in an effort to ensure
high public approval ratings, the government
ramps up investment in programmes aimed
at reducing social inequality. The initiative
helps assuage perceptions that the
government gives preference to extractive
industries at the expense of effective local
economic development. Amid pressure from
investors and the general public to fully
implement his reform agenda, Vizcarra works
on business-friendly measures, which
includes implementing improvements to the
investment regulatory framework.
Multiple corruption scandals, involving
public officials both from a spectrum of
parties and from companies, contribute to
increased public and business pressure to
deal with persistent corruption. In late 2018,
Vizcarra implements high-level integrity
measures after regional corruption
investigations (alleged money laundering
and influence peddling by politicians and
Brazilian companies) place increased
scrutiny on Peruvian projects and politicians.
Fujimori’s FP party is forced by public opinion
to lend its support to anti-corruption
measures, even if that means implicating
some of its own members. The Special Public
Prosecutor for Crimes of Corruption receives
a boost in funding and increased
independence to carry out corruption
investigations.
framework remains credible, and receives
praise from some groups that traditionally
oppose high-impact investment projects.
Vizcarra is especially focused on formalising
workers (including mining workers) to ensure
a more transparent labour environment. This
also eases the tensions of local communities
that previously had high levels of informal
workers and employment uncertainty.
The long-term operating environment
improves as opposition to projects declines
gradually. Environmental concerns and
economic motivations continue to fuel
opposition to investment projects in the
short term. Funding in infrastructure
connecting traditionally isolated
communities to larger markets also rises.
These initiatives alleviate community
pressure on companies, traditionally seen as
state-like service providers as well as a
source for jobs. The boost in public
investment means that community
opposition to projects gradually recedes in
the longer term.
Corruption risks fall as Vizcarra and
minority Congress parties agree on a
comprehensive anti-corruption framework,
off the back of increased public pressure to
implement changes and to divert attention
away from themselves and their parties.
With the passage of the framework, the
Vizcarra administration addresses
commitments required to become a member
of the Organisation for Economic Co-
operation and Development (OECD). Most
importantly, the added funding and
increased independence of the Special
Public Prosecutor for Crimes of Corruption
(SPPCC) guarantees initial effective action in
the prosecution of regional officials facing
corruption charges – one of Vizcarra’s
priorities upon coming to office.

OUTLIER

Governability is impossible and political crises are new norm

Overview Scenario Developments Specific Issues

Several months after Vizcarra comes to
power, the opposition begins to obstruct
legislation at every turn, looking at every
angle to undermine him. This is partially as a
vote-winning strategy ahead of the 2021
elections, and partially as a means of
undermining Vizcarra and painting him as
an illegitimate president as he was not voted
into power.
Calls for new presidential elections become
increasingly frequent, and Vizcarra
eventually heeds the calls to appease an
increasingly irate public. The elections are
The government’s policy agenda loses
direction.
In late 2019, focus turns from trying to fix the
mess left by the previous government to
Vizcarra trying to put out the political fires
from Congress. His focus is on defending
himself and attempts to attract investment
or new projects are fewer and far between.
Investors are largely ignored and no positive
changes are made to the regulatory
environment. At the local level, investors are
left to fend for themselves and run into local
corruption, bureaucratic delays and other
HIG Political Stability
There is no clear indication as to who will
succeed in the 2020 elections. Political
uncertainty and the overall dynamics
highlight the fragility of democratic tradition.
MED Regulatory
Vizcarra is unable to fulfil plans to improve
the business environment by streamlining
bureaucratic procedures to expedite
investments in key industries. His successor
also fails in this regard.
 increasingly frequent, and Vizcarra
eventually heeds the calls to appease an
increasingly irate public. The elections are
scheduled for late 2020. Keiko Fujimori is
also increasingly undermined, with
investigations into her own involvement in
corruption scandals ramping up, and her
own popularity at rock bottom. FP lawmakers
increasingly support Kenji as Keiko appears
to be irreparably tarnished, and he is able to
obtain the support of more than 20 former
FP members. Other candidates, who are not
part of the political establishment, emerge as
candidates, hoping to win the anti-political
class vote. However, there are no clear
frontrunners for the elections, with
disillusionment with the political
establishment at an all-time high.
LIMA
TRAVEL
MEDIUM
Lima is a sprawling city, divided into distinct districts. The city's street layout comprises of plazas, where historical and government buildings are
usually located. Visitors are likely to spend most of their time in the upmarket districts of Miraflores, San Isidro and Barranco, which are along the
coast to the south of the city centre, and in the Chacarilla area (Surco district), near the US embassy. These areas are also the main business
districts.
Street crime is a significant concern in Lima; theft and robbery are common. Visitors should avoid the shanty towns, the old district of Lima
(Cercado) and other central areas with high crime rates, such as La Victoria, Rimac, Brena, El Agustino, and Callao.
CITY SECURITY GUIDE
CRIME
environment. At the local level, investors are investments in key industries. His successor
left to fend for themselves and run into local also fails in this regard.
corruption, bureaucratic delays and other
operational issues. HIG Security
As the rule of law becomes more fragile,
The economy takes a significant criminals take advantage of the situation for
downwards turn. As the government falls their own gain. All kinds of crime (violent,
apart for the second time during the 2016-21 common and organised) see increases.
administration, the projection for economic
growth is reversed. Stalled and pending
projects do not come online and the lack of
central planning leads to a lack of a clearly
defined political direction. Amid the growing
political crisis, a number of investors leave
the country and abandon their investments
which further fuel the crisis.
The security environment suffers a
widespread deterioration across the
country in the absence of a central
government. Instances of common crime
increase and the security forces find
themselves overwhelmed and lacking
direction. Organised criminal groups take
advantage of the lack of rule of law to
convert local ports into shipment points for
cocaine. Coca production overtakes Colombia
as the country where highest amounts of
production takes place.
Social unrest increases exponentially. As the
Odebrecht scandal increasingly implicates
the ruling class, instances of protest are
increasingly common. Protests range from
those supporting Fujimori, to those seeking
her and all of congress’ resignations. Protests
in rural areas are also increasingly common
as investors are largely abandoned by
authorities to deal with local communities
and their expectations. Local communities
feel that pressuring companies will force
them to concede greater benefits.
CRIME

Petty crime, including street robbery and car theft (especially of four-wheel drive vehicles), are the main threats to travellers in Lima.
Pickpocketing, purse-snatching and theft of mobile phones occur regularly, particularly at busy transport facilities, in crowded marketplaces,
restaurants and in and around hotels. Criminals often use motorcycles to carry out smash-and-grab robberies or bag-snatchings.

Organised and drug-related criminal activity has contributed to crime in the city. Thieves have smashed car windows or displayed firearms at
traffic lights to intimidate and rob passengers, and armed attacks have taken place at ATMs.

Crime tends to increase around the holidays, particularly in December. The up-and-coming Barranco neighbourhood, while popular with visitors,
has the highest rate of violent crime.

TERRORISM

The incidence of terrorist attacks in Lima has fallen considerably since the height of the ultra-leftist Shining Path (Sendero Luminosa) campaign in
1992 and the threat is practically non-existent. However, the security forces occasionally conduct widespread checks in a bid to thwart terrorist
operations, especially around commemorative dates; visitors should carry photo identification at all times.

SOCIAL UNREST

Protests and rallies are common in Lima and most of these take place in the capital's downtown area; potential protest venues include Congreso
de la República, Palacio de Gobierno and other government buildings. Although these pose no direct threat to foreign nationals, all protests are
best avoided due to the potential for unrest. Traffic congestion and delays are also possible during demonstrations and rallies.

TROUBLE SPOTS

Foreigners should avoid the districts of San Juan de Lurigancho, Ate, Comas, Los Olivos, Rimac, San Martin de Porres, and the Grau/Abancay area.
Travellers should exercise vigilance while at beaches in the south of Lima, namely el Silencio and Pulpos, as well as in downtown Lima. All beaches
should be avoided at night. Visitors should also avoid street markets and parks after dark. Of the areas popular with visitors, the up-and-coming
neighbourhood of Barranco experiences the highest rates of violent crime, as the level of safety varies block-by-block.

Tourist sites such as Plaza de Armas (Government Square), Plaza San Martin, the Plaza de Toros de Acho (bullring) and Pachacamac are hotspots
for pickpockets and opportunistic criminals. In downtown Lima, frequent thefts of valuables are reported around Avenida Bolivia near the central
shopping centre, as well as around the intersection of Avenidas Wilson, Nicolás de Piérola and Tacna. Travellers should also exercise prudence
while visiting the municipal markets, as well as the Gamarra textile district of La Victoria.

SEEKING HELP

The National Police Force (PNP) is divided into several units. In case of an emergency, visitors should contact the Servicio de Proteccion Turistica
(Tourist Protection Network), which has 24-hour operators who can handle enquiries in English (Tel: 423 3500). Non-tourist police officers tend to
be corrupt and may attempt to extract bribes. Visitors must not photograph anything that could be regarded as a strategic or military site, such as
police stations, military installations and public utilities, and should carry photo identification with them at all times.

All serious police matters involving foreigners are dealt with by the Policia Nacional Extranjería division, which employs interpreters. Contact your
embassy or consulate at the first opportunity in the event of any serious criminal incident.

EMERGENCY NUMBERS

Fire: 116
Police: 105
Tourism Police: 423 3500

Ambulance services are not recommended. Contact International SOS for help with your medical situation.

CITY TRAVEL GUIDE

PORT OF ENTRY

Airport code: LIM

Jorge Chávez International Airport is located in the neighbouring port district of Callao, seven miles ( 11km) north-west of the city centre. It is
modern and has better facilities than other airports in the region. Currency can be exchanged before going through customs; the bureaux de
change in the main terminal attracts thieves. Oversize luggage is subject to secondary inspection. Travellers face the risk of falling victim to petty
crime at the airport and surrounding areas.
crime at the airport and surrounding areas.

TO CITY CENTRE

Criminals, who often masquerade as taxi drivers, have targeted vehicles on the road from Jorge Chávez International Airport. Business travellers
should pre-arrange to be met upon arrival by a local host or a hotel representative. Visitors should only use taxis that are registered with the
airport. Travellers can enquire about these taxis at the customer service counter, located before the terminal exits. In addition, international car
rental agencies such as AVIS and Hertz have counters at Jorge Chávez International Airport. The municipal government operates the Airport
Express Lima, a fixed-rate charter bus that transports passengers between the airport and several hotels in Miraflores.

CAR HIRE

Driving conditions are poor and violent crime directed against motorists is increasing. Members should avoid driving alone and minimise travel
after dark. All cross-country travel should be undertaken in daylight hours only. Several car rental companies have their offices at the airport and
in the city centre. However, renting a car is expensive; short-stay visitors should instead arrange for a trusted driver to take them to appointments,
hire taxis booked through hotels or use phone-based taxi and ride-share applications.

TAXIS

Visitors should use licensed taxis obtained through their hotel or host company. Radio taxis or limousine taxis parked outside major hotels and in
tourist areas are licensed services attached to hotels that are reliable and safe. Visitors should always agree on the fare before boarding. Taxis
available on the street (typically displaying a red/white illuminated sign above the front windscreen and red/white markings on the doors) are
generally cramped, old, and passengers run the risk of robbery; these are not suitable for business travellers.

Car-share services like Uber or taxi applications such as Cabify or Taxi Satelital are also a suitable means of transport for business travellers.
These services provide a cashless transaction with the driver, as well as the driver and car details to the rider prior to departure, which add layers
of security to the ride.

WALKING

Exploring the city on foot is generally not recommended, especially after dark, except for short distances within upmarket districts such as
Miraflores, San Isidro, Barranco and the Chacarilla area (Surco). Common sense precaution should be taken around the Plaza de Armas, the Plaza
San Martin, Acho Bullring and Pachacamac areas due to the risk of petty crime.

PUBLIC TRANSPORT

Public transport, which includes municipal buses, collective minibuses (known as combis or colectivos) and a new electric train is not suitable for
business travellers. Fatal accidents involving combis are commonplace, and pickpockets and bag-snatchers operate on crowded vehicles.

DIPLOMATIC REPRESENTATION

Embassy of United Kingdom Phone: +51 1 6173000

Torre Parque Mar, Avenida Jose Larco 1301, 22nd floor, Miraflores Fax: +51 1 6173100
Lima Email: belima@fco.gov.uk
Peru Website: https://www.gov.uk/government/world/organisations/british-
Additional nationalities represented: No Geography embassy-peru

Embassy of Germany Phone: +51 1 2035940

Avenida Dionisio Derteano 144, Alto Caral building, 7th and 8th floors, Secondary Phone: +51 997 576 200
San Isidro Fax: +511 422 48 13
Lima Email: info@lima.diplo.de
Peru Website: http://www.lima.diplo.de
Additional nationalities represented: No Geography
Additional nationalities represented: No Geography

Embassy of Italy Phone: +51 1 4632727

Avenida Giuseppe Garibaldi 298 (ex Gregorio Escobedo), Jesus Maria Secondary Phone: +51 997 232 073
Lima Fax: +51 1 4635317
Peru Email: ambasciata.lima@esteri.it
Additional nationalities represented: No Geography Website: http://www.amblima.esteri.it

Embassy of United States Phone: +51 1 6182000

Avenida La Encalada, block 17, Surco Fax: +51 1 618-2722
Lima Email: Lima_WebMaster@state.gov
Peru Website: http://pe.usembassy.gov/
Additional nationalities represented: No Geography

Embassy of Spain Phone: +51 1 2125155

Avenida Jorge Basadre 498, San Isidro Secondary Phone: +51 995 655 898
Lima Fax: +51 1 4402020
Peru Email: emb.lima@maec.es
Additional nationalities represented: No Geography Website:
http://www.exteriores.gob.es/Embajadas/Lima/es/Paginas/inicio.aspx

Embassy of Belgium Phone: +51 1 2417566

Avenida Angamos Oeste, 380 Miraflores Secondary Phone: +51 999 96 5550
Lima Fax: +51 1 2416379
Peru Email: lima@diplobel.fed.be
Additional nationalities represented: No Geography Website: http://peru.diplomatie.belgium.be/es

Embassy of China Phone: +51 1 4429458

Jiron Jose Granda 150, San Isidro Fax: +51 1 4429467
Lima Email: chinaemb_pe@mfa.gov.cn
Peru Website: http://pe.china-embassy.org
Additional nationalities represented: No Geography

Embassy of South Africa Phone: +51 1 6124848

Avenida Victor Andrés Belaunde 147, Edificio Real Tres 3, Office 801, San Fax: +51 1 4223881
Isidro Email: general.peru@dirco.gov.za
Lima
Peru
Additional nationalities represented: No Geography

Embassy of Australia Phone: +51 1 6300500

Avenida La Paz 1049, 10th Floor, Miraflores Fax: +51 1 6300520
Lima Email: consular.lima@dfat.gov.au
Peru Website: http://peru.embassy.gov.au/
Additional nationalities represented: No Geography
 Additional nationalities represented: No Geography

Embassy of Japan Phone: +51 1 2199500

Avenida Javier Prado West 757, 16th Floor, Magdalena del Mar Secondary Phone: +51 1 2199538
Lima Fax: +51 1 4630302
Peru Email: consjapon@li.mjofa.go.jp
Additional nationalities represented: No Geography Website: http://www.pe.emb-japan.go.jp

Embassy of France Phone: +51 1 2158400

Avenida Arequipa 3415, San Isidro Fax: +51 1 2158441
Lima Email: france-chancellerie@ambafrance-pe.org
Peru Website: http://pe.ambafrance.org
Additional nationalities represented: No Geography

Embassy of Switzerland Phone: +51 1 2640305

Avenida Salaverry 3240, San Isidro Fax: +51 1 2641319
Lima Email: lima@eda.admin.ch
Peru Website: http://www.eda.admin.ch/lima
Additional nationalities represented: No Geography

Embassy of Finland Phone: +51 1 2224466

Calle La Santa Maria 120, San Isidro Secondary Phone: +51 1 2224480
Lima Fax: +51 1 2218286
Peru Email: sanomat.lim@formin.fi
Additional nationalities represented: No Geography Website: http://www.finlandia.org.pe/

Embassy of Canada Phone: +51 1 3193200

Calle Bolognesi 228, Miraflores Fax: +51 1 4464912
Lima Email: lima@international.gc.ca
Peru Website: http://www.peru.gc.ca
Additional nationalities represented: No Geography

Copyright © Control Risks Group Holdings Ltd. and AEA International Holdings Pte. Ltd. www.controlrisks.com