In 2024, Germany pledged an additional 352.5 million euros to Peru for development cooperation. Of this, 322 million euros are for financial cooperation and another 30.5 million euros for technical cooperation. The largest part of the financial cooperation consists of repayable loans. In addition, Germany finances various projects with non-repayable grants.
However, the high sum raises questions. Which projects are actually being implemented, how far along are they, and do they address Peru's most pressing problems?
20 million euros for cycle paths in Lima
Germany is funding a large cycling program in Lima with a grant of 20 million euros. A total of 114 kilometers of cycle paths have been planned, along with bicycle parking and other infrastructure.
The program was already agreed upon in 2021. Disbursement is staggered and depends on the progress of individual projects. Some cycle paths have since been completed. However, the entire originally planned network is still not fully implemented.
Thus, the project demonstrates an important difference between a funding commitment and an actually completed project.
Another 24 million euros for cycle paths in Piura and Trujillo
German millions are also to flow into cycle paths outside Lima. Germany has offered a grant of 24 million euros for this. Piura and Trujillo are among the planned cities.
However, construction has not yet begun. In January 2026, the Peruvian Ministry of Transport still described the project as one of several initiatives being evaluated. The 24 million euros are therefore not an investment already made in finished cycle paths.
It is a planned financing, the implementation of which is still pending.
Does Piura really need millions for cycle paths?
Especially in Piura, the question of priorities arises. Cycle paths are not fundamentally a bad investment. They can relieve traffic and supplement public transport.
However, Piura has much more fundamental infrastructure problems. Heavy rainfall regularly leads to problems with roads and drainage. At the same time, the city struggles with unregulated public transport and significant traffic congestion.
The climate must also be taken into account. High temperatures and intense sun exposure affect the everyday usability of bicycles. Therefore, before a multi-million euro investment, it would need to be clarified how many people will actually use the planned routes.
Equally important are route planning, shade, safe intersections, and the future maintenance of the facilities. A cycle path brings little if it ends in isolation or is not meaningfully connected to other modes of transport.
The decisive question is therefore not whether cycle paths are generally useful. The decisive factor is whether, given other unresolved problems, they are among the most important investments for Piura.
At the same time, basic infrastructures are lacking
The comparison with other German projects shows Peru's different challenges. In Chimbote, for example, the German KfW is funding a wastewater project with a loan of 80 million euros.
There is a very specific environmental problem there. According to the project sponsor, approximately 26 million cubic meters of domestic wastewater flow into Bahía El Ferrol annually. More than 550,000 people are expected to benefit from the new wastewater infrastructure.
But this project is also not yet finished. In June 2026, the international prequalification for the planning, construction, and supported operation of the new plant was underway. Here, German funds are being used to address a fundamental problem of water and wastewater infrastructure.
100 million euros for Piura's public transport
In addition to the cycle paths, a much larger project is under discussion for Piura. Germany, through KfW, could provide a loan of 100 million euros for a new urban transport system.
The core element is to be an efficient bus system. It is intended to connect Piura, Castilla, and Veintiséis de Octubre. But here, too, it is important to distinguish between planning and actual implementation.
In May 2026, the project was still in the pre-investment phase. Representatives of KfW, GIZ, the Ministry of Transport, and other organizations accompanied the planning. A finished bus system does not yet exist.
Earlier plans assumed that final implementation could take until 2032.
25 million euros for the Amazon
Another German program is already more concretely organized. By 2027, 25 million euros of German funds are to flow into the protection of the Peruvian Amazon region.
Regional governments in Loreto, Cusco, and Ucayali, as well as the Peruvian National Service of Natural Protected Areas (Sernanp), will benefit. The program covers four regional and 15 national protected areas.
Disbursement is linked to verifiable targets, including monitoring, control, and the participation of local communities. More than nine million hectares of the Amazon region are covered.
Here it will be possible to verify much more precisely later whether the agreed results have actually been achieved.
Another 22 million euros for protected areas
In June 2026, another German-Peruvian nature conservation program was agreed upon. Germany is providing approximately 22 million euros as a grant for this.
This is intended to support 15 national and two regional protected areas. The measures affect more than six million hectares. Since the new funding phase was only agreed upon in June 2026, its results cannot yet be evaluated.
Illescas shows that projects are also completed
A largely implemented example is located in Piura. The PAN III nature conservation program had a total volume of eleven million euros. Germany financed ten million euros of this. The areas supported include the Illescas National Reserve near Sechura.
The program financed, among other things, infrastructure, equipment, and measures for the management of the protected areas. Local fishermen and other population groups were also involved.
The final KfW inspection took place in spring 2025. According to Sernanp, the project achieved a protection rate of 94.6 percent. More than 220 people directly benefited from the measures.
Thus, there is also an example in Piura where German funding has led to verifiable results.
Large sums say little about success
The examples show a very mixed picture. In Lima, there is a 20 million euro grant for a partially implemented cycling program. Another 24 million euros are planned for Piura and Trujillo, although implementation has not yet begun.
For public transport in Piura, a possible 100 million euro loan is on the table. The project is still in the pre-investment phase. In Chimbote, 80 million euros are being provided for a wastewater project, the construction of which is also not yet completed.
The situation is different for some nature conservation projects. The 25 million euro program for the Amazon is results-based. Another 22 million euros were agreed upon in 2026 for protected areas. The PAN III project with Illescas, however, has largely been implemented and monitored.
These projects do not automatically all belong to Germany's new pledge of 352.5 million euros from 2024. Some agreements are much older. A simple addition of the various amounts would therefore be incorrect.
Are cycle paths the right priority?
Precisely this question should be allowed in development cooperation. Peru needs investments in water supply, wastewater disposal, flood protection, health care, and basic transport infrastructure.
At the same time, German grants worth millions are flowing into cycle paths. This can be sensible if the routes are heavily used and are part of a functioning transport system. However, an ecological justification alone is not enough.
For a 24 million euro grant for cycle paths in Piura and Trujillo, it should be understandable what specific benefits the investment brings. Crucial factors are the expected user numbers, the actual traffic relief, and the later maintenance costs.
Piura, in particular, highlights the question of priorities. Heavy rainfall and floods regularly expose deficiencies in drainage and roads. At the same time, fundamental problems in public transport remain unsolved.
In addition, there is a much larger social challenge nationwide. In 2025, 34.9 percent of Peruvian children between six and 35 months suffered from anemia. In rural areas, the proportion was even 43.2 percent.
Against this background, one may ask whether millions for cycle paths achieve the greatest possible social benefit. This does not mean pitting cycling against health care or flood protection. It means providing a comprehensible justification for the selection of publicly funded projects.
How many people will use the cycle paths daily? What traffic problems do they actually solve? How high are construction and maintenance costs? What measurable climate impact will be achieved? And would the same grant be more effective for water, health, or flood protection?
Therefore, with development funds, the pledged millions should not be the focus. What is crucial is what is actually implemented, how many people benefit, and what problem is solved.
Frequently Asked Questions about German Development Aid for Peru
How much did Germany pledge to Peru in 2024?
Germany newly pledged 352.5 million euros to Peru. 322 million euros are for financial cooperation and 30.5 million euros for technical cooperation.
Are the 352.5 million euros a gift?
No. The largest part of the financial cooperation consists of repayable loans. In addition, there are non-repayable grants.
How much does Germany give for cycle paths in Lima?
For the cycling program in Lima, 20 million euros were agreed as a non-repayable grant. A total of 114 kilometers of cycle paths are planned.
What is planned for Piura and Trujillo?
A German grant of 24 million euros is planned for cycle paths. In early 2026, the project was still in preparation.
What is planned for the transport system in Piura?
A possible KfW loan of 100 million euros is being considered for a sustainable urban transport system. In May 2026, the project was still in the pre-investment phase.
Sources and Image Credits
Federal Ministry for Economic Cooperation and Development (BMZ): Country Information Peru and Government Pledges 2024.
Ministerio de Transportes y Comunicaciones (MTC): Mobility projects Piura and Trujillo, January 22, 2026; Status of the Sistema Integrado de Transporte Piura, May 22, 2026.
Municipalidad Metropolitana de Lima: German-Peruvian agreement on 20 million euros for 114 kilometers of cycle paths.
Programa Nacional de Transporte Urbano Sostenible – Promovilidad: German funding for sustainable cycling projects in provincial cities.
Programa Nacional de Saneamiento Urbano: PTAR Chimbote, prequalification 2026.
Ministerio de Economía y Finanzas and Sernanp: Programs for the protection of the Amazon and other protected areas.
Sernanp: Final inspection PAN III and Reserva Nacional Illescas, 2025.
INEI/ENDES: Anemia in children between six and 35 months, 2025.
Hero image source: Wikimedia Commons, "Ciclovía Wilson 2024.jpg", (SVPG), CC BY 4.0.
