Pucallpa - Cruzeiro do Sul Road Analysis

The Initiative for Regional Infrastructure Integration (IIRSA) is a series of road and energy projects that aims to connect South American countries. The proposed Pucallpa - Cruzeiro do Sul road between Peru and Brazil is a link in the Central Inter-Oceanic highway in IIRSA's Amazon Hub. The route's other sections are largely in place. However, some are still in the paving and rehabilitation process in both countries. This project would open a new road in a biologically and culturally unique area, known as the Sierra del Divisor (Serra do Divisor in Brazil) increasing deforestation. Important environmental services could be lost, and protected areas and indigenous lands in both Peru and Brazil could suffer damage as a result.

CSF is launching an economic evaluation to establish the road's viability in economic, environmental and social terms. CSF will first conduct a market study to establish the estimated demand for road traffic. The study will examine the of supply and demand of goods and services whose transportation the road would facilitate, as well as the economic activities would be encouraged by it's construction. Based on demand, we will estimate expected traffic and conduct a financial and economic feasibility analysis of the road. Environmental externalities, such as those resulting from deforestation, will be considered. The analysis aims to support decision making on the Central Inter-Oceanic highway, and provide the public with sound economic information on this important project.

This project is supported by the Gordon and Betty Moore Foundation.