Driving Performance at Peru’s Transport Infrastructure Regulator
As “market referees”, regulators contribute to the delivery of essential public utilities.
Their organisational culture, behaviour and governance are important factors in how
they, and the sectors they oversee, perform. The report uses the OECD Performance
Assessment Framework for Economic Regulators to assess both the internal and external
governance of Peru's Transport Infrastructure Regulator (OSITRAN). The review discusses
OSITRAN's good practices, analyses the key drivers of its performance, and proposes
an integrated reform package to help the regulator prepare for the future.
Published on February 27, 2020Also available in: Spanish
OSITRAN holds a unique mandate compared to other Peruvian regulators as well as internationally, with responsibility for overseeing private investment in public-use transport infrastructure in Peru. Concretely, this means supervising compliance with the obligations of concession contracts awarded by the state for transport infrastructure projects. OSITRAN’s portfolio has grown from USD 3.1 billion (2006) to USD 15.2 billion (2018) and covers a large remit of road, rail, ports and inland waterways.
As many public entities, OSITRAN operates in a highly complex environment linked in part to the erosion of trust in public institutions. The regulator’s leadership has put in place a number of measures to address the need to rebuild trust internally and with stakeholders. For these efforts to bear fruit, the bar needs to be set high in order to successfully re-set the identity and internal culture of the regulator, and to foment a relationship based on confidence, predictability and stability with all stakeholders.
Efforts to achieve these objectives will be bolstered by addressing other areas linked to the regulator’s governance and performance, such as the definition of a clear strategic focus on desired outcomes for the sector and society, the consolidation of the regulator’s on-going integrity initiatives under one umbrella, the continued standardisation of criteria for enforcement and inspections, and the development of more outcome-focused indicators to monitor the implementation of OSITRAN’s work programme.
The institutional maturity of Peru’s regulators in general is an opportunity for the achievement of these goals and may also be a chance to lead by example within the Peruvian public administration. Similarly, some challenges are shared between regulators and could be best addressed jointly, such as clarifying the impact of limited autonomy and fiscal constraints on the regulator’s resourcing and ensuring alignment of the mandate and structure of the Board of Directors. OSITRAN also has good practice to share, for example in the field of stakeholder engagement via its User Councils and its use of good regulatory practice.