Foreign Aid to Peru: Transforming Health Care
The U.K-Peru G2G Agreement is set to improve Peru’s health care infrastructure that has notably faced significant challenges, including fragmented systems, limited resources and disparities in access. A shortage of health care professionals and inadequate funding have exacerbated these issues which have greatly affected the quality of care provided. Despite making progress in the health sector in recent decades, such as the improvement of population health through health care reforms, sadly many issues remain.
These structural issues became ever more apparent with the COVD-19 pandemic as it hit Peru’s vulnerable health care system badly. Experts said that Peru’s largest issue was the insufficient funding and lack of preparation within its health care system. As of July 2022, authorities reported 6,500 COVID-19 cumulative deaths per million people, the highest in the world. The pandemic led to public outcry and put political pressure on the Peruvian government to pass lasting health reforms.
Following these challenges, Peru is moving to reform its health care infrastructure notably with the launch of its National Health Investment Program (PRONIS) in February 2025. Due to the heart of the issue of the pandemic-era being decentralization – this plan prioritizes the construction of Level III-1 hospitals, regional facilities capable of delivering advanced medical scale.
The G2G Model
In August 2024, Peru’s Ministry of Health (PRONIS) and the U.K. government signed a new Government to Government (G2G) agreement worth $630 million USD aiming to bolster hospital infrastructure for 5 million Peruvians in the north of the country. It aims to increase health care provisions in these areas, reducing the regional health care gap in the country via the building of multiple modern hospitals. This marks a modern model of foreign aid to Peru that goes far beyond traditional financial support.
The Memorandum of Understanding (MoU), which was signed in March 2025, also commits the British Embassy in Lima and the Peruvian government to promote the development of public-private partnerships for the operation and maintenance of infrastructure developed through Government-to-Government (G2G) Agreements.
The New Hospitals of the Future
There are two flagship hospitals being built under the Peru-UK G2G healthcare partnership aiming to benefit around 5 million in the north. One of them is the Trujillo Regional Teaching Hospital. The president said that more than $327 million USD will go into the health care infrastructure, featuring 28,600 state-of-the-art medical devices.
The Piura High-Complexity Hospital is receiving an investment of $259 million USD and will also be level III-1. The hospital will include 600 beds and more than 7,000 medical devices.
The Government of Peru and the United Kingdom later expanded their collaboration on high complexity hospital infrastructure to incorporate the Guillermo Diaz de la Vega Regional Hospital in Apurimac into the agreement. This will be the first high-complexity facility in one of the country’s most underserved Andean regions. These hospitals will likely be in operation by late 2028.
In Peru, there is an inverse correlation between poverty and access to quality health care. This is higher among the older population. With the focus of upgrading health care infrastructure in rural areas where people often have limited access to quality health care, the foreign aid to Peru from the U.K can help alleviate poverty by reducing preventable illnesses, lowering expenses and enabling individuals to lead healthier lives.
A Healthier Future
This G2G model not only strengthens bilateral ties between the U.K. and Peru but marks a movement to restore confidence in public works. The transformation of health care infrastructure via the new hospitals demonstrate how quality health care can be accessible across the country to all civilians. The targeting of health care gaps in impoverished areas highlights a strategic move towards equal healthcare for all. The G2G model fosters mutual accountability, with Peru maintaining its operational control but with the U.K.’s technical expertise. This serves as a model for future foreign aid – it’s a blueprint for impactful international cooperation that will have transformative results for the people of Peru.
– Hannah Latham
Hannah is based in Hampshire, UK and focuses on Good News and Global Health for The Borgen Project.
Photo: Unsplash
