Peru’s new government specializes in natural gas, hydroelectric sectors for public companies

Lima, August 8 (Reuters) – Peru’s new Prime Minister Guido Belido told Reuters on Saturday that the state plans to participate in major industries, including natural gas and new hydroelectric projects under the new left-wing administration.

For his part, Belido, a senior aide to President-elect Pedro Castillo, said the government wants to create new public companies, a change that has focused on destroying state-owned corporations over the past decade.

Former high school teachers Castillo and Belido are now ready to turn left if they can overcome a major hurdle in the opposition-led Congress Green House.

They have also set up a committee to control inflation, Belido said, and analysts say that due to the high political risk, the strength of the local currency, the dollar, has strengthened.

Peruvian Minister of Economy Pedro Frank, who will be the head of the committee, said in a statement that “we need to stop the rise in the dollar.”

Frank first failed to serve under the new prime minister, the strongest party in the newly elected party, and created a final rift just minutes before taking the oath of office. Belido Frank is expected to consult with the rest of the cabinet.

“Everything is a conversation, no one can have an island, the economy is not an island,” he said.

Belido, a member of Congress from the Kuzco region, was less well-known in Lima’s political parties before Castillo, who won the presidency this June and campaigned against the Marxist-Leninist Party in Peru.

Unlike Castillo, Belido is a longtime member of independent Peru and describes himself as a socialist.

Other priorities include ensuring that industries seek warm relationships with the communities in which they operate and invest in environmental protection, he said.

In a wide-ranging interview with Lima’s jewelery palace, Belido said he was less concerned about the challenges facing Congress, and that Castillo would not be prosecuted, unlike Martin Viczara.

Castillo is the fifth president of Peru in five years due to a series of political upheavals. He has not been interviewed since taking office.

“It is a matter of tradition that the farmer is now the president of the republic,” said Belido, referring to Castillo’s background in rural Peru.

Strategic components

He accused the private sector of “plundering” the country’s resources during the presidential campaign, and said he wanted to run natural gas, gold, silver, uranium, copper and lithium projects nationally.

He later downplayed the idea that private investment would be respected.

But Belido said in an interview that the state would have a role to play in key industries.

“Our strategic areas need to be in the hands of the government. He said.

“In my opinion, natural gas is a strategic resource and government involvement (as well as) large-scale new hydroelectric projects is needed,” he said, adding that the world’s No. 2 copper mining sector would eventually be left behind. Under the control of a private organization.

Belido’s government’s intention to participate in natural gas could have significant implications for Peru, the largest oil producer in the country. The union is led by PLUSPC.UL in Argentina and has small poles held by South Korean Compilers SK Group (096770.KS), Hunt Oil and Repsol SA. (REP.MC)

That natural gas will then be consumed by a special combination called PELNG.UL, which includes Royal Dutch (RDSa.L), Japan Marubeni Corporation (8002.T), SK and Hunt.

Environmental Responsibilities

Unlike most former prime ministers who grew up in Spanish-speaking Lima, Belido was born in the Andua region of Kuzhou and speaks Coca-Cola.

Promising to give priority to isolated Peruvian people, Castillo was quick to send Belidon to help resolve the mining dispute near his home territory. China Mining MMG LTD (1208. HC) The Las Bambas mine is one of the largest copper deposits in the southeast and Peru, 1,100 km (700 miles) from the capital, Lima.

Locals have recently blocked a key route for MMG copper to be used to transport to the beach. Many trucks cross the dirt road and their fields are covered with mineral dust.

Following Belidon’s visit, the residents agreed to stop protesting for 60 days in order to find a more lasting solution.

“The miners have neglected their environmental responsibilities in the pursuit of higher profits,” Belido said.

He acknowledged that Peru was a “mining country” but said that under the new administration, corporations should invest more in improving relations with local communities. But he emphasized that the Castillo administration wanted to reach an agreement instead of a conflict with the miners.

“We have to talk, we have to understand, we don’t have to load here,” he said.

Report by Marco Aquino and Marcelo Rochabrun; Edited by Islin Lang and Aurora Ellis

Our Standards – Thomson Reuters Trust Principles.


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