This report examines Peru's Camisea natural gas project and draws lessons from the challenges faced by subnational governments in managing its revenues.
Between 2004 and 2009, the Camisea project generated approximately $1.13 billion in public revenues for subnational governments (SNGs), which the Peruvian national government distributed through mechanisms called the gas Canon and the Camisea Fund for Socioeconomic Development (FOCAM). This report provides information on the context of extractive industries development in Peru and describes the specific case of the Camisea project, offering analysis of the regional distribution of its revenues. Using this case as a springboard, it outlines recommendations for specific areas where IFIs can target their project investments in order to increase the effectiveness and efficiency of SNG management of public revenues.
