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The report analyzes the management of revenues from Peru's Camisea natural gas project, finding that while subnational governments (SNGs) increased infrastructure spending, they suffered from weak strategic planning and insufficient transparency. It argues that IFIs should withhold support for extractive projects until governance capacity is sufficient and should actively fund SNG capacity building in strategic planning and accountability.

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  • Subnational governments (SNGs) in Peru have increased investment spending primarily on infrastructure, yet they fail to address oil price volatility or the eventual decline in gas revenues because they carry over significant surplus revenues annually.
  • Strategic planning capacity at the municipal level is weak, as evidenced by a lack of planning documents, meaning investment decisions are not guided by a coherent strategy or a medium-to-long-term perspective.
  • Existing mechanisms for public access to information in SNGs do not meet Peruvian legal requirements or the standards necessary for citizen accountability; furthermore, urban residents in municipalities receiving Camisea revenue have limited knowledge of the gas Canon, hindering their ability to monitor spending.
  • The long-term development impact of the Camisea project is jeopardized by planning failures from both the Peruvian national government and IFIs, who failed to build SNG capacity before massive revenue transfers began in 2006.

Cite the original document

APA
World Resources Institute (n.d.). People, Power, and Pipelines. https://www.wri.org/research/people-power-and-pipelines
Chicago
World Resources Institute. People, Power, and Pipelines. n.d. https://www.wri.org/research/people-power-and-pipelines.
Wikipedia
{{cite report |author=World Resources Institute |title=People, Power, and Pipelines |url=https://www.wri.org/research/people-power-and-pipelines |access-date=17 August 2026 |via=Climate Insights Directory}}
BibTeX
@techreport{worldresourcesinstitutendpeople, author = {{World Resources Institute}}, title = {{People, Power, and Pipelines}}, institution = {World Resources Institute}, url = {https://www.wri.org/research/people-power-and-pipelines}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }

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