Law No. 29337: Law Establishing Measures to Support Productive Competitiveness (PROCOMPITE)

Law No. 29337, published on March 28, 2009, establishes measures to support productive competitiveness through Productive Competitiveness Support Initiatives, known as PROCOMPITE. It declares the improvement of value-chain competitiveness a priority government strategy through the development, adaptation, improvement or transfer of technology, particularly in areas where private investment is insufficient to achieve competitive and sustainable development. Initiatives are implemented by regional and local governments through competitive selection processes and may include transfers of equipment, machinery, infrastructure, inputs and materials to organized economic agents. The original law authorizes regional and local governments to allocate up to 10 percent of certain budgeted project resources to finance these initiatives, subject to applicable legal conditions. It prohibits direct cash transfers to beneficiaries and financing of operating and maintenance expenses. The law also establishes authorization requirements, beneficiary contributions, coordination among subnational governments, registration, monitoring and impact evaluation. PROCOMPITE is a multisectoral non-reimbursable productive co-financing mechanism that may support agrifood value chains but is not restricted to agriculture. Its regulatory framework has subsequently been developed and amended, including through Supreme Decree No. 001-2021-PRODUCE and related amendments. For PAESA purposes, the law has direct but partial agrifood relevance, particularly when initiatives target agricultural, livestock or agro-industrial value chains.