Urgency decree enables works-for-taxes projects in response to El Niño

The Executive Branch published this Wednesday, September 2, 2026, Urgency Decree No. 010-2026, which establishes extraordinary economic and financial measures to enable the execution of interventions through the works-for-taxes mechanism in response to El Niño Phenomenon 2026-2027. The regulation, signed by President Keiko Sofía Fujimori Higuchi and countersigned by the President of the Council of Ministers, Luis Fernando Galarreta Velarde, and the Minister of Economy and Finance, Elmer Rafael Cuba Bustinza, was published in the extraordinary edition of the Official Gazette El Peruano (Year XLIII, No. 19496).

The decree is based on the declaration of a State of Emergency in 893 districts of the country, established by Supreme Decree No. 124-2026-PCM, due to the imminent danger of intense rainfall associated with the climatic phenomenon. The regulation expands the scope of application of Law No. 29230, which promotes regional and local public investment with private sector participation, to incorporate interventions linked to disaster risk management and strategic civil defense infrastructure.

The climatic scenario according to ENFEN

The ENFEN Technical Report Year 12 No. 15 of August 26, 2026, maintains the “Coastal El Niño Alert” status and projects an extraordinary magnitude of the phenomenon between September 2026 and January 2027, with a probability exceeding 62%. In the Niño 3.4 region (central equatorial Pacific), a very strong magnitude is expected, with maximum intensity between November and December 2026, and a gradual transition toward a neutral condition during the autumn of 2027.

Given this scenario, the ENFEN Multisectoral Commission recommends adopting risk reduction and response preparation measures, considering the rainy season forecast between September 2026 and April 2027.

What is enabled and how it is streamlined

The regulation enables public entities from the three levels of government and public universities to prioritize and execute, through works-for-taxes, emergency services and investments for optimization, marginal expansion, rehabilitation, and replacement (IOARR). Among the main simplifications, the following stand out:

• Direct contracting of the private company and the private supervisory entity, without administrative appeal against the award.
• Reduced deadlines: resource accreditation report in 3 business days, direct contracting authorization in 4 days, and technical file in 5 business days.
• Exemption from the favorable opinion of budgetary capacity from the General Directorate of Public Budget.
• No prior report from the Comptroller General of the Republic, without prejudice to simultaneous and subsequent control.
• Registration of emergency IOARRs in the Multiannual Investment Program only during the execution phase.

Financing and monitoring

Interventions are financed through the works-for-taxes mechanism in accordance with Law No. 29230 and its regulations. For regional and local governments and public universities, the issuance of Regional and Local Public Investment Certificates (CIPRL) is carried out against their Maximum Annual Capacity Ceiling (TMCA). The General Directorate of the Public Treasury of the Ministry of Economy and Finance will issue the certificates within 5 business days.

The monitoring of emergency services and IOARRs will be the responsibility of Proinversión, which will issue a monthly report to the Ministry of Economy and Finance. The regulation is in effect until December 31, 2027, and was issued at the Government House, in Lima, on September 2, 2026.

The measure seeks to ensure that the State timely utilizes the financing and execution capacity of the private sector to reduce the exposure of the population and public infrastructure, ensuring the continuity of essential services and preventing damages from resulting in higher subsequent fiscal rehabilitation costs.

Source: Official Gazette El Peruano, extraordinary edition, Year XLIII No. 19496, Wednesday, September 2, 2026, Legal Norms, p. 2 (official reference: Emergency Decree No. 010-2026, ref. 2550403-1).