Peru: Measures to expedite the expropriation and release of interferences in public and public-private infrastructure projects

In brief

On 25 May 2023, Legislative Decree No. 1559 was approved, amending the following three regulations:

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Contents

In depth

Objective of the amendment: to establish measures to optimize, improve and expedite the processes and terms for the acquisition and availability of land, release of interferences and imposition of easements for the development of public, private and public-private investment projects, providing greater economic incentives to obtain early possession of real estate, establishing special provisions for the contracting of services, consultancy and works.

Main novelties

  1. Amendments to DL 1192:
    1. The recognition of 30% of the commercial value of the affected property is included as an incentive to be granted to achieve an early possession of the property, including the precarious possessor.
    2. Exceptionally and in the absence of a notary public in the area of the affected property, the justices of the peace are authorized to certify the signatures in the act of transfer for the purposes of registration.
    3. The definition of occupants is included as persons who do not prove 10 years of possession of the affected property, but who are occupying it.
    4. The term is shortened from 10 to five working days for interested third parties to question the ownership and to appear before the active subject, evidencing their right of ownership and the successive tract.
    5. The obligation is included — for the owners, possessors and occupants of the affected properties — to provide facilities for the ocular inspection for the purposes of the preparation of the Technical Legal File.
    6. It is established that the lack of ocular inspection (derived from the refusal of the owners, possessors and occupants) does not nullify the Technical Legal File. Furthermore, it is established that in this scenario, the information obtained in situ, municipal and/or registry information sources or others that help to determine the commercial value of the property are considered, leaving a record through a police, notarial or judicial record of the refusal of the taxpayer.
    7. A special term of 90 days (extendable up to 120 working days) is included to vacate industrial and/or commercial premises.
    8. A case is included in which the release of interferences is authorized (without the mediation of an agreement) when the following is applicable:
      • The owner cannot be identified
      • The interference is inoperative or cancelled and the licensee does not comply with the requirements within a period of 30 calendar days
      • The licensee authorizes the entity to release the interference — the licensee authorizes the entity in charge of the release of interferences to remove them after having declared them abandoned, by means of a written communication.
      • The licensee states that they do not have the right to remove the interference — the licensee states that it does not have sufficient logistical capacity, this is without prejudice to the corresponding administrative, civil and criminal liabilities, as the case may be.
  2. Amendments to Law 3327:
    1. The following are included as exceptions from application: (i) public water assets considered strategic by the National Water Authority (ANA), except for those cases in which said entity determines that there is no affectation; and (ii) land and real estate of the Defense Sector, owned or under the administration of the armed forces or reserved for national security and defense and security, except for those cases in which said entity determines that there is no affectation.
  3. Amendments to Law 29151:
    1. It includes the assumption of title in favor of the National Superintendence of State Assets (SBN) ex officio of the state-owned properties included in projects declared of national interest, national character or national scope by sectorial resolution or by law, for the actions of legal physical reorganization, defense and recovery, as well as for the approval of the acts of acquisition, administration and disposition required for the execution of private investment projects.

This resolution issued by the SBN assuming ownership of the state-owned property cannot be appealed administratively.

However, the streamlining of the procedures for the release and acquisition of land for infrastructure projects must be accompanied by an improvement in public management (from planning to execution), requiring better collaboration between the state entities involved in the development of the projects.

We hope that this information will be of relevance to you and your company. If you require any further information, please do not hesitate to contact us.

Click here to access the Spanish version.

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