IDB Approves $80M Loan to Modernise Peru’s Digital ID System

Access to legal identity is considered a cornerstone for participation in formal employment, financial services, social protection programmes and voting systems.

The Inter-American Development Bank (IDB) has approved an $80 million Specific Investment Loan to overhaul Peru’s civil registration and digital identification system, aiming to dramatically expand access, cut processing times and strengthen inclusion — particularly in rural and Amazonian regions.

The operation, backed by an additional $20 million in local counterpart funding, will bring total investment to $100 million and targets a structural upgrade of Peru’s National Registry of Identification and Civil Status (RENIEC).

A Foundation for Economic Inclusion

Access to legal identity is considered a cornerstone for participation in formal employment, financial services, social protection programmes and voting systems.

“Improving access to civil registration and identification services is a fundamental step toward reducing gaps and promoting more inclusive development,” said Matilde Bordón, IDB Country Representative in Peru. “This operation supports Peru’s efforts to bring these services closer to citizens and to strengthen the conditions that make it possible to exercise rights and access opportunities.”

Large segments of Peru’s rural and Indigenous populations face logistical and geographic barriers to obtaining identity documents, limiting access to public services and economic participation.

Three Pillars of Reform

The loan will finance three major components designed to modernise infrastructure, extend reach and digitise services.

1. Expanding In-Person Service Coverage

The project will:

• Modernise and equip registry offices and service centres

• Expand issuance of the electronic National Identity Document (DNIe)

• Improve infrastructure in underserved regions

2. Reaching Vulnerable and Remote Populations

To address geographic and social gaps, funding will support:

• Mobile registration units

• Portable biometric and identification equipment

• Training of registrars in rural and Indigenous communities

This component is expected to significantly improve coverage in hard-to-reach Amazonian territories.

3. Digital Transformation and Cybersecurity

A core innovation is the rollout of the Integrated Identification and Civil Registration System (SIIRC), which will modernise Peru’s identification architecture.

Investments will include:

• Enhanced cybersecurity protections

• Data analytics capabilities

• Digital identity infrastructure upgrades

• Institutional change management

The reforms aim to consolidate a secure, interoperable digital identity system aligned with global standards.

Ambitious 2030 Targets

By 2030, the programme aims to deliver measurable performance gains:

• Reduce average DNIe processing time from 9.3 days to 2 days

• Increase the share of Peruvians holding a DNIe from 13.9% to 74.9%

• Raise the proportion of identification transactions conducted digitally from 24.9% to 50%

The expansion of digital identity is expected to reduce administrative burdens, lower costs for citizens and improve service efficiency across government agencies.

Financing Terms

The $80 million loan carries:

• A 16.5-year amortisation period

• A 6-year grace period

• An interest rate based on SOFR

Combined with $20 million in domestic funding, the total programme envelope reaches $100 million.

The IDB says the investment strengthens institutional capacity while laying the groundwork for broader digital government reforms, financial inclusion and improved public service delivery in Peru.