PERU: Supporting Private Sector Finance for Smart Traffic Management Systems in Lima

The Municipalidad Metropolitana de Lima (MML) oversees traffic infrastructure and systems in the Lima Metropolitan Area (LMA) through ProTransito, a special project agency for optimizing, modernizing, and integrating LMA’s traffic management and control systems. The MML aims to upgrade its traffic management system by centralizing traffic lights, signaling systems, and associated components. This smart traffic management system is crucial for the LMA, which contributes 49 percent of Peru's GDP but faces challenges with traffic congestion affecting access to 1.4 million jobs, impacting productivity and city competitiveness. The objective of this activity was to advise the Municipality on private sector capital mobilization strategies for the provision, operation, and maintenance of the smart traffic management system. The analysis aimed to enhance efficiency, safety, and environmental sustainability in urban transport. The work produced a roadmap for traffic integration, leading to additional PPIAF technical assistance for ProTransito and the Lima-Callao Urban Transport Authority (ATU). The focus is on modernizing the traffic light system, implementing a Traffic Violation Detection System, and establishing provisions for the mandatory integration of traffic management centers. This work is part of the recently approved World Bank loan operation, Lima Traffic Management and Sustainable Transport – Phase 1.