ENGIE qualified for early VAT recovery on Aguaytía-Pucallpa link

The Ministry of Energy and Mines (MINEM) approved ENGIE TRANSMISIÓN PERÚ S.A. as a qualified company to benefit from the Special Regime for the Early Recovery of the General Sales Tax (IGV), within the framework of the project “220 kV Aguaytía-Pucallpa Link, Substations, Lines and Associated Expansions (ITC Project)”. The decision was formalized through Ministerial Resolution No. 386-2026-MINEM/DM, dated September 14, 2026, published in the Legal Norms section of the official newspaper El Peruano on Wednesday, September 16, 2026.

The regulation, signed by the Minister of Energy and Mines, Guillermo Shinno Huamaní, establishes that the investment commitment undertaken by the company amounts to US$ 58,550,259.00 (fifty-eight million five hundred fifty thousand two hundred fifty-nine US dollars), excluding IGV.

Regulatory Framework and Procedure

The regime is based on Legislative Decree No. 973, which establishes the Special Regime for the Early Recovery of the IGV, and its Regulation, approved by Supreme Decree No. 084-2007-EF. The application was submitted by ENGIE TRANSMISIÓN PERÚ S.A. on April 4, 2025, to the Agency for the Promotion of Private Investment (PROINVERSIÓN), which forwarded the file to MINEM after verifying compliance with the requirements.

During the process, the General Directorate of Electricity requested an updated execution schedule from the company, removing the items for technical training services and social programs with stakeholders as they were not directly related to the execution of the project. The company addressed the observations through Letter No. 002-ETP-2026, dated March 23, 2026.

Deadlines and Scope of the Benefit

The investment commitment must be executed within a total period of four years and thirteen days, counted from April 4, 2025, to April 17, 2029. The testing period will take place from March 19 to April 17, 2029, and the commercial operation date (COD) is scheduled for April 18, 2029.

The benefit covers the IGV levied on imports and local acquisitions of new capital goods, new intermediate goods, services, and construction contracts listed in Annex II of the resolution, provided they are used directly in the execution of the project. Acquisitions made from April 4, 2025, until the receipt of income from productive operations are considered.

Investment by Category

The investment schedule (Annex I) breaks down the total amount into the following main categories:

• Engineering and construction: US$ 40,097,280, including the procurement and construction contract for the transmission line (US$ 21,006,064) and the EPC contract for the electrical substation (US$ 18,936,216).
• Directly acquired equipment: US$ 8,899,885, with steel structures (US$ 3,307,067), transformers and reactor (US$ 2,418,790), and conductors (US$ 2,290,381).
• General services: US$ 8,470,555, including engineering and construction supervision (US$ 2,620,747) and easement management (US$ 1,701,235).
• Environmental management and permits: US$ 914,715, including the environmental impact study (US$ 735,000).
• Insurance services: US$ 167,824.

The list of goods, services, and construction contracts is subject to modification at the request of the company, in accordance with numeral 6.1 of article 6 of the Regulations of Legislative Decree No. 973.

Impact for the Amazon

The qualification of ENGIE TRANSMISIÓN PERÚ S.A. will allow for the accelerated execution of the 220 kV link between Aguaytía and Pucallpa, key infrastructure to reinforce electrical transmission in the Peruvian Amazon and expand service coverage in the Ucayali region. By recovering the IGV (VAT) in advance, the company reduces the financial cost of the investment, which favors the progress of a strategic project to close electrification gaps in the area.

Source: Official Gazette El Peruano, Wednesday, September 16, 2026, Legal Norms section, pág. 11-12 (official reference: Ministerial Resolution No. 386-2026-MINEM/DM).