Project Reference Profiles – Peru(PE07) Support for Design and Implementation of Peru’s Freight Vehicle Scrapping Program

At a Glance

Strategic Outcomes SO1 Reduced GHG emission
Start Date Q1  Mar 1 2019
End Date q1 June 29 2019
Funding Source Core
Actual Budget (USD) 21,948
Budget Percentage 100%
Actual Expenditure (USD) 21,996
Status Complete
GGGI Share (USD) 21,996
Poverty and Gender Policy Markers poverty
Name of Client (Lead/Prime implementer if GGGI is part of a consortium) Ministry of Transportation and Communications
Participating Organization (Funding/donor)
Name of consortium members, if any
Thematic Area
  • Green Cities
GGGI Project Code :
Project Manager and Staff +

Project context, objectives and description

The Ministry of Transport and Communications (MTC) is responsible for the mitigation measures related to transportation. One such measure is the National Scrapping Program and Vehicle Renewal measure, which consists of scrapping and renovating obsolete vehicles to remove them from circulation, or renewing them with more efficient technologies, through incentives. Currently, the Ministry of Economy and Finance (MEF) is in coordination with MTC regarding the designation of a fund of USD 30 million for overall the execution of a freight transport scrapping program whose disbursement could begin in November if the entire justification process is completed by June for budget assignment. Disbursement will begin in 2019 or 2020 and the main task at present confronting MTC is the justification and design of the program. 

The project objective is to support the Ministry of Transport and Communications in the design of a national-level freight vehicle scrapping program for NDC implementation, improved road safety and vehicle formalization. This project is aligned with IO2.Increased green growth investment flows which enable partner governments to implement green growth policies. 

The project will consist of 2 stages: 

GGGI will support MTC to structure the scrapping program for the initial disbursement from the Ministry of Economy and Finance. Stage 1 envisages two key activities: (1) development of rationale for the scrapping program by synthesizing the existing information, and formulation of impact indicators (2) initial design of the program (scope and structure) and timeline for implementation. 

Type of services provided, and results achieved

Impact: Peru reduces GHG emissions and achieves its NDC commitments through removal of old freight vehicles nationwide through effective vehicle scrapping programs. 

Outcome: N/A 

Project Outputs completed in 2019: 

i. Green Growth Policies:N/A

ii. Green Investments:N/A

iii. Capacity Building and Knowledge Products: N/A 

Number of staff provided

Project Manager: Aaron Drayer 

Pablo Pena, Paola Cordova