Currently Knowledge Transfer Subject Matter Expert (Commercial) in the UKDT PMO on the Peru Reconstruction Plan. Stuart has more than 25 years’ track record of commercial and contract management experience working across both public and private sector projects, as well as more than 20 years’ experience in the development and delivery of professional training. As well as working for Gleeds in the UK and Peru, Stuart has also worked in China for Gleeds and has supported people development in Gleeds’ offices in Egypt and Poland. Stuart has been well placed to support the adoption of the NEC and UK Cost Management best practice in Peru – he was Chair of the RICS New Rules of Measurement (NRM) initiative and was heavily involved in the creation of the RICS Black Book Guidance (best practice in cost management).

1. Stuart Earl
Gleeds
Programme of the
Year Winner:
La Autoridad para
Reconstruccion con
Cambios (ARCC) /
Gleeds - case study

7. GOVERNMENT-TO-GOVERNMENT
AGREEMENT
The transformation of the Peruvian public sector, based on the experience of the
Reconstruction with Change Authority

8. Classification - Public
AGENDA
• Our history
• Our benefits
• Our challenges and how we
overcome our challenges
• Conclusions

9. Our history

10. Classification - Public
In 2017, the "El Niño" phenomenon impacted Peru,
leaving as a consequence:
Destruction of more than
USD 5 billion
162
deceased persons
More than
285,000 people affected
1,559,487 homes affected

11. Classification - Public
City of Catacaos, Piura, Peru, 2017

12. Classification - Public
City of Trujillo, La Libertad, Peru, 2017

13. Classification - Public
The ravages of the "El Niño" phenomenon 2017

14. Class
P
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paper of 1925 reports on the destruction of the city of Trujillo by an FEN.
But this Phenomenon has always been repeated
in Peru and has never been addressed.

15. Classification - Public
The ARCC was created in response, under the
traditional Peruvian scheme of transferring
resources to municipalities and other entities.

16. Classification - Public
In 2020, a new phase of
implementation begins
hand in hand with the UK.

17. Classification - Public
2019 2020 2021 2022-
2017
Legacy and
Knowledge
Transfer
.
Signing of the
Government-to-
Government
Agreement with
the United
Kingdom.
The ARCC is
constituted as the
Implementing
Entity.
El Niño
Phenomenon -
Creation of the
ARCC
The PMO, procurement
guidelines and
specialised assistance
are established.
Construction
commenced.

18. Classification - Public
The Authority for Reconstruction with Change has been successful in
product delivery and project management, but its most important
success has been the transformation of the Peruvian public sector.
To teach and demonstrate a different way of doing things with high
standards of quality, technological innovation, environmental
sustainability and excellence in project execution.

19. Our benefits

20. Classification - Pu
Note: The proposed new Peruvian procurement law seeks to include ARCC procurement experience.
Evidence: https://elperuano.pe/noticia/216300-poder-ejecutivo-presenta-proyecto-de-ley-de-contrataciones-del-estado
blic
Efficiency in project and results management
times in the country.
ARCC has established
Peru and is the new
benchmark of success in
infrastructure works.
Deadlines for public procurement processes in Peru
We have been able to
reduce procurement,
0 1 2 3
Average of 5 months difference
4 5 6 7 8 9
Procura G2G ARCC
National Standard (Public Tender)

21. Note: The Peruvian State has created a National Infrastructure Authority for mega-projects based on the experience of the ARCC.
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Efficiency in project and results management
42
74
55 55
74
With ARCC
No ARCC
Diferencia: 74
IIEE
Timelines for infrastructure implementation and handover processes
EDUCATION SECTOR
4 years difference

22. Note: The Peruvian State has created a National Infrastructure Authority for mega-projects based on the experience of the ARCC.
ClassiE
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Efficiency in project and results management
2
0 0 0 0
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
13
12
Diferencia:
10 establecimientos
de salud
8
15
0
5 5 5
15
With ARCC
No ARCC
HEALTH SECTOR
4 years difference
Timelines for infrastructure implementation and handover processes

23. Classification - Public
Governance and Strategic Management

24. Classification - Pu
Note: For example, a project change process in the Peruvian investment standard can take between 3 to 6 months. In the ARCC it can be done in a week or less.
Evidence: https://www.ipe.org.pe/portal/el-ciclo-de-inversion-publica-demoras-en-los-procesos/
blic
We have developed agile and adaptable processes in Peruvian public management.
Governance and Strategic Management
All our processes incorporate lessons learned

25. Classification - Pu
blic
We have implemented an organisational model and decision-making structure that is unique in the
country against a backdrop of complex bureaucracy. This agile model is serving as an example for
entities at the national level.
Latin American Bureaucracy Index (2022)
Governance and Strategic Management

26. Classification - Pu
Note: The success of the ARCC PMO has led to the issuance of a law authorising the creation of PMOs in public executing agencies at the national level.
Evidence: https://acortar.link/KJ2ukn
blic
We have implemented the first PMO in the public sector in the country.
Governance and Strategic Management

27. Classification - Public
Innovation and technology

28. Classification - Pu
blic
Innovation and technology
We have implemented advanced technology for every aspect of project management.
We are pioneers in the use of BIM in Peru. This has resulted in a regulatory framework
to implement BIM throughout the construction sector in the country.

29. Classification - Pu
blic
Innovation and technology
We have an integrated information system based on technological tools that in
many cases are being used for the first time in the Peruvian public sector.
Power BI - Reporting PortARCC- Information Spring P6 - Timelines
RiskHive - Risks Aconex- Contractual/Documents Aconex Cost - Costs

30. Classification - Pu
blic
High standards of quality in Peruvian construction
Quality standards in Peru's construction sector have been raised. The aim is to have resilient, flexible,
functional and citizen-centred infrastructure. This has been evidenced during the 2023 rainy season.
The quality of the projects was put to the test during the dengue pandemic, where the hospitals built
served as focal points in the region. Schools also served as shelters during the rainy season of Cyclone
Yaku.
Difference between a Peruvian school flooded by the rains 2023 and an ARCC school under construction with no impact.
+ More than 500 quality audits carried out

31. Classification - Public
Measurable results
Since its inception, the ARCC has achieved
7,682 interventions
G2G interventions delivered

32. Classification - Public
31
Educational
Institutions

33. Classification - Public
3
Establishments
of Health

34. 4,846,542
Almost 15% of the country's population benefits from our projects.
final beneficiaries

35. Classification - Pu
blic
Measurable results
19%
PUBLIC
INVESTMENT
(13 regions)
12%
PUBLIC
INVESTMENT
(National)
Note:
-
-
-
In this case, GDP is represented by Gross Value Added, i.e. it does not take into account production taxes and import duties.
The information presented corresponds to the year 2022.
Source: INEI and FONDES (MEF), as of 17 August 2023.
22% ANCASH
34% FREEDOM
44% LAMBAYEQUE
54% PIURA
52% TUMBES
ARCC Participation in Public Investment

36. Classification - Pu
blic
Measurable results
11%
(National)
13%
(13 regions)
40% ANCASH
34% FREEDOM
37% LAMBAYEQUE
47% TUMBES
67% PIURA
Note:
-
-
-
In this case, GDP is represented by Gross Value Added, i.e. it does not take into account production taxes and import duties.
The information presented corresponds to the year 2022.
Source: INEI and FONDES(MEF),as of 17 August 2023.
ARCC's share in Construction Sector GDP

37. Classification - Public
Conservation of ecosystems
with more than 69,000
hectares of natural
infrastructure
Measurable results

38. Classification - Public
There are 12 Natural Infrastructure Projects,
located in 12 basins in the northern and
central coastal regions of Peru.
Target
o Recovery of ecosystems that provide
natural risk regulation services, protect
people and their livelihoods.
o Decrease in the vulnerability of the
productive area and infrastructure.
Measurable results

39. Classification - Public
We use
water
sparingly
Water Consumption
We managed to
maintain an
average of less
than 3% dust or
contamination
complaints.
Dust
We monitor
energy use to
make the right use
of resources.
Energy Saving
We are aware of
the impact of
noise pollution,
we have less than
3% of noise
complaints.
Noise
Measurable results
We have
recycled
22,253
tonnes of
waste
Recycling

40. Classification - Pu
blic
Contributions to project management in Peru
HIGHEST
STANDARDS
Application of the best
international tools and
practices in project
management.
PMO
First PMO in
the public
sector in
Peru.
PROCUREMENT
Fast, fair and transparent
tools, which contribute to the
fight against corruption in the
procurement process.
Adapting best practices to the Peruvian reality and context. Transforming local reality

41. Classification - Pu
blic
Laying the foundations for the future
Human capital has been trained as experts in collaborative contracts (NEC),
in project control and management, management, procurement, etc.
To date, more than 15,000 people have been trained from various state
entities (ARCC, sub-national governments, Comptroller's Office, Presidential
Council of Ministes, Ministry of Economy and Finance, etc.).
Human capital with knowledge of
international project management
standards.
Technical support in all phases of
project implementation.

42. Our challenges

43. Classification - Public
Consolidating rapid progress into a new public entity; which was at the time facing
criticism for slow response
Managing the impact of regular Political change and social conflict.
Navigating Sub-national bureaucracy that resists change
Facing the Phenomena El Niño and impacts of climate change .
Delivering projects in a huge geographical area with different social and environmental
challenges
Not having enouph programme management experts in country
Our challenges

44. Classification - Public
Developing a systematic governance approach with implementation of Lessons learnt and
bringing international best practice.
Retaining institutional knowledge (learning framework) through leadership team churn and
maintaining ‘single source of the truth PMO’.
Lobbying for New Peruvian laws promote good practice and change, direct stakeholder
management at senior level, demonstrating success (project progress) to sceptical regional
leaders.
Overlaying the impact of climate change in designs (not previously done), undertaking
geographical information system with multi-criteria hazard assessments (to improve design
resilience) and maintaining consistent risk / issue management (to support capacity to manage
threats and uncertainty) .
Delivering projects in a huge geographical area with different social and environmental
challenges.
Incorporation of technology and innovation in construction processes, working with local
supply chain and using Digital design practices to enable specialists support and input.
Having expert staff. Professionals from different parts of the world working simultaneously.
How we overcome our Challenges

45. Conclusions
The ARCC has transformed Peru.
Its experience is not only replicable
in the national public sector, but
also in the Latin American public
sector.

46. Physical
Reconstruction
Economic
Development
Improvements
in the public
sector
Quality and
resilience to
future
disasters
Knowledge
transfer
Changes in
national
regulations
Cultural
legacy and
change of
mentality

48. Classification - Public
Thank you