Emergency Decree No. 010-2026: An Opportunity for Coordinated Action Between the Private Sector and the State

Emergency Decree No. 010-2026 establishes extraordinary measures for the implementation of interventions through the Works for Taxes (OxI) mechanism in response to the El Niño phenomenon. It establishes an extraordinary and temporary framework that allows Emergency Optimization, Marginal Expansion, Rehabilitation, and Replacement Investments and Services (IOARR) to be implemented through Works for Taxes, incorporating simplification measures aimed at reducing the usual timelines of the mechanism and accelerating the implementation of prevention, preparedness, response, and rehabilitation interventions.

From the perspective of a private company, this is particularly interesting because it allows part of its tax payments to be transformed into a concrete prevention intervention, financing infrastructure and services that can help protect critical areas, productive infrastructure, and basic services before an emergency occurs.

In addition, the mechanism provides for the recognition of investments through CIPRL certificates, which companies can use to pay certain tax obligations. The current framework also provides for the issuance of certificates based on progress in certain cases, allowing for earlier recognition of the investment rather than necessarily waiting until the full completion of a longer-term intervention.

Emergency Decree No. 010-2026 represents an opportunity that differs from a conventional Works for Taxes process, particularly due to the need to act quickly in response to climate-related risks and the simplification measures specifically established for these interventions. Private companies should work jointly with officials from Regional and/or Local Governments to identify specific prevention interventions within their areas of direct and indirect influence, coordinate them with the relevant public authorities, and assess their technical and legal feasibility for financing through this mechanism.

Rather than waiting for an emergency to occur, the objective is to invest proactively in protecting infrastructure, ensuring the continuity of basic services, and reducing the social and economic costs of a potential disaster.

El Niño is expected to have a significant impact on the economy and create major challenges in preventing, mitigating, and/or rehabilitating affected public infrastructure. However, it will also create opportunities to demonstrate that coordinated efforts between private companies acting as catalysts for efficient and effective public investment and the State, at the local, regional, and/or national levels, can promote measures to reduce the impact of this climate phenomenon.

Achieving this public-private synergy can pave the way for the implementation of subsequent territorial development models, generating significant economic, social, and environmental benefits for stakeholders within the direct and indirect areas of influence of private-sector operations.

Author
Eng. Enrique Aldave Garcia del Barrio
General Manager, ICG S.A.C.