Peru's PM Says China-built Megaport Should Launch this Year After Dispute

A resolution to end a dispute between Peru and China's Cosco Shipping could come as soon as this week to ensure a megaport will start operations as planned by the end of the year, Peru's Prime Minister Gustavo Adrianzen said on Thursday.

The Peruvian port authority said in Marchit hoped to annul its decision granting exclusivity of the port's operations to Cosco, citing an "administrative error."

Cosco, which is investing $1.3 billion in the first stage of the terminal, has said the push affects the "security and legal stability of investments."

On Thursday, Adrianzen said in an interview with local radio station RPP: "I trust, though I don't want to get ahead of myself, that this week or next week everything should be resolved in a positive way and all these gray clouds will be cleared."

The construction of the port at Chancay, some 46 miles (74 km) north of Lima, is at least 70% complete, according to Cosco, which hopes to inaugurate it during the Asia-Pacific Economic Cooperation (APEC) leaders' summit at the end of the year, with Chinese President Xi Jinping in attendance.

A total of $3.5 billion is set to be invested in the port, which has drawn interest from Brazil as a gateway for exports to Asia, but has raised concerns in the United States and Europe, which are seeking to curb China's influence in Latin America. Adrianzen stated that the request to annul the firm's exclusivity reflects "inefficient aspects" in some public institutions that must be corrected.

"We are aware that this is generating an undesired disturbance," he said. "I can guarantee we are convinced that Chancay will be inaugurated in November under the foreseen conditions," he added.

Cosco, which did not immediately respond to a request for comment outside business hours in China, holds a 60% share in the port, with the rest held by local polymetallic miner Volcan, which is itself owned by Switzerland-based Glencore.

(Reuters - Reporting by Marco Aquino; Writing by Sarah Morland; Editing by Kylie Madry and Costas Pitas)