31–001 Peru is a presidential representative democratic republic: it has a central government, regional governments and provincial municipalities operating under the Peruvian Constitution of 1993. In the early 1990s it started a series of reforms that touched on a variety of subjects that became key components of the country’s legislation largely due to the Constitution. These included reforms on fiscal consolidation, exchange rate flexibility, financial liberalisation, trade openness, higher reliance on market signals and prudent monetary policy comprising a strong built-up of reserves. The new legislation has attempted to attract new foreign investment in the country. For instance, the Public Procurement Law explores the possibility of entering the market in a basic scheme of design-bid-build to contract services, goods or works by private companies with the government. The Public-Private Partnership Law has opened up the possibility for private companies to invest and create large infrastructure projects which will later give them the opportunity to recover a long-term investment by operating the projects under the PPP scheme in the following modalities: