Particle.news

Audit Finds 32 G2G Reconstruction Projects More Than Double Cost and Triple Duration

The Contraloría says authorised contract change mechanisms and weak risk management drove large overruns, exposing flaws in Peru's G2G NEC3 reconstruction program.

Overview

  • The Contraloría report published Wednesday found the 32 reviewed projects rose from a contractual S/843 million to S/2,029 million and extended planned work from 4,414 days to 19,093 days.
  • In a six-project sample auditors counted 140 'eventos compensables'—contract change events—that added S/381 million and 2,860 days to schedules, delaying infrastructure meant for about 78,600 citizens.
  • The audit links most increases to authorised design changes, unforeseen technical or site conditions, third-party interferences and climate or health risks, and it flags limited availability of risk-management specialists during execution.
  • Concrete examples include the El León flood-protection project, which rose from S/473 million to S/818 million, and the José Sevilla Escajadillo school, which jumped from S/11.7 million to S/62 million, forcing thousands of students into temporary classrooms.
  • The works were run under a Government-to-Government NEC3 model managed first by ARCC and later by ANIN, with only 32 of 141 G2G investments reaching commercial closure by Dec. 31, 2025, and the UK G2G agreement valid through Dec. 31, 2026, raising oversight and budgetary questions for next steps.