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Available Funds in Ancash 2010: The beggar is sitting in your bank

By: Richard Moreno Bustos

The appeal from mining in the Ancash which gives more attention in the media, debates and interventions authorities, representatives and leaders, is the famous "Canon Minero. However, there are other financial resources seem to have passed by unnoticed and become an interesting source for funding major projects to which they can aspire to improve social and competitive Ancash and the current regional management with his startling blindness management visionary and has been missing out.

First, we have to Investment Fund Ancash Development (IFAD) who in 2001 became the "mining penalty" paid by Antamina (111.5 million dollars) and I mean a series of protests from various institutions and populations, seeking to make possible the implementation of its coveted project ( Catac-Tunnel Road Cahuish; City University of UNASAM; Road Huarmey - Recuay; Drain, Chimbote; Health Center San Marcos Road Casma-Huaraz, Electrificaciones, etc. ), but in the period of almost a decade, some have not yet been fully implemented.

On the other hand, every year, mining companies are forced to share up to 8% of their profits to workers in return, the same being delivered up to 18 times their monthly salary to each employee. Once this first part [1] , which comes to 2.200 on ITU to Employment Promotion Fund (FONDOEMPLEO) [2] and, if presented the case that there is still a remnant after that delivery, these funds called "Remnants of mining profits" are transferred to Regional Government to invest in road infrastructure at a regional level.
Thus, the last 5 years the funds generated from the two sources mentioned is quite important, as an example, for 2010 is estimated FONDOEMPLEO available in S /. 23.5 million, while as "Remnant mining profits" have S /. 815 million.

Then we have the " Canon Minero" understood as 50% of income tax returns the state of the proceeds of mining companies and producer is transferred to the department for distribution to the Regional Government, Local Government and Universities public. Ancash mining royalties to between 2007 and 2010 has meant transfer of S /. 4.770 million on balance added to the delivery of this year can be available over S/.2, 451 million new soles.

Finally, as another source of financial resources as important, we have the "Mining Fund" or "voluntary contributions" u "Pence mining" or its official name "mining program in solidarity with the people," is administered by the same mining companies and equivalent to 3.75% of its net income and should be annually for socio-productive investment over 5 years (end 2011). The condition for this contribution is not withdrawn is that metals prices are above the "average reference price" established for each mineral.
These contributions in Ancash, between 2007 and 2010 and have accumulated about S /. 658 million, but after of the costs already incurred, it could be considered as available S /. 292.8 million this year. Ancash

for 2010 has, in the five funds described, S /. 3,717.2 million soles, which have become an unimaginable opportunity to finance so-called "Project Impact" in the area of \u200b\u200bthe department, provinces and districts in the region, but weaknesses in political leadership, planning, regional management capacity and coordination among institutions maintain several years to beggar sitting on a bench wear gold, without improving conditions for deployment capabilities, and neglecting the use of its obvious potential agricultural, livestock, forestry, tourism, fisheries, mining and water supply.
Therefore, the new authorities to choose this October 3 should be aware that we need to have a clear political decision to order investment leverage even more funds and not waste the great opportunity we have to make a difference in this part of country.

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[1] According to Law 28 464 -2005

[2] institution that annually invites tenders for productive projects in the department where the resource is generated.