IDB Approves $46.7M Loan to Boost Peru’s Strategic Planning Capabilities

The operation supports the IDB Country Strategy with Peru 2022–2026, which prioritizes improved governance, sustainable public investment, and institutional strengthening.

In a landmark move to modernize public sector management in Peru, the Inter-American Development Bank (IDB) has approved a $46.7 million loan to strengthen the country’s National Strategic Planning Center (CEPLAN). The project will improve how Peru designs, coordinates, and evaluates its development policies across all levels of government—national, regional, and local—by enhancing the effectiveness of the National Strategic Planning System (SINAPLAN).

The program is expected to redefine Peru’s public policy landscape, fostering more efficient, inclusive, and data-driven governance. It is backed by an additional $10.8 million contribution from the Peruvian government, bringing the total investment to $57.5 million.

A Strategic Leap in Public Sector Reform

The operation supports the IDB Country Strategy with Peru 2022–2026, which prioritizes improved governance, sustainable public investment, and institutional strengthening. It will:

• Upgrade Peru’s strategic planning methodologies, making them more modern, adaptable, and results-oriented

• Enhance intergovernmental coordination between ministries and local authorities

• Close communication gaps among policy designers and system operators

• Enable evidence-based policymaking through stronger data and ICT systems

“This program is a milestone in the IDB’s support for public sector management,” said Juan Cruz Vieyra, Lead Specialist in Modernization of the State at the IDB. “It will set an example for countries in the region to follow because of how strategic planning will add value to the government’s financial management, especially in public investment systems.”

Capacity Building at Every Level of Government

One of the program’s core components is the capacity building of civil servants. It targets staff at:

• CEPLAN, the national institution that oversees strategic planning

• Regional and municipal planning offices

• Public agencies involved in budgeting, public investment, and administrative management

These efforts aim to institutionalize strategic planning processes throughout Peru’s decentralized governance model, ensuring that development plans at all levels align with national goals.

The program will also promote citizen engagement, encouraging communities to participate in the formulation of development plans that reflect local needs and aspirations.

A New Era of Integrated and Interoperable Systems

A major part of the investment will go toward strengthening the digital infrastructure and information systems that support CEPLAN’s operations. This includes:

• Modernizing data management tools

• Improving interoperability with the Integrated Financial Administration System (SIAF)

• Enhancing CEPLAN’s ability to track the outcomes and efficiency of public investments

This digital transformation follows the recommendations of the Organization for Economic Co-operation and Development (OECD), which advocate for interconnected financial, planning, and administrative systems to drive performance in public governance.

The approach is both territory-based and multidimensional, meaning it tailors public strategies to specific local contexts while integrating multiple sectors, such as health, education, infrastructure, and economic development.

Efficient Spending, Inclusive Growth

By linking planning to budget and investment systems, the project is expected to improve the efficiency of public spending, reduce duplication of efforts, and ensure that projects meet national and local development objectives. It will also mainstream crosscutting issues—such as gender equality, environmental sustainability, and digital inclusion—into Peru’s planning tools.

This approach seeks to increase the impact of every sol spent, especially in municipalities where strategic plans are used to guide investments in infrastructure, social services, and economic development initiatives.

A Model for the Region

The IDB views this program as a scalable model for other Latin American countries, many of which face similar challenges in aligning long-term planning with short-term political and fiscal realities.

With a 20-year repayment term and an eight-year grace period, the loan is structured as a specific investment operation. It is designed to deliver lasting institutional change and position Peru as a leader in strategic planning and public sector modernization in the region.

As Peru continues to pursue inclusive and sustainable development amid shifting global dynamics, the enhanced capabilities of its planning system will play a critical role in building a more resilient, accountable, and forward-thinking state apparatus.