He Ministry of Energy and Mines (Minem) formally rejected the applications presented by Hidroeléctrica América SAC, a company chaired by the businessman Zhihua Yangto extend the start of a hydroelectric project in Abancay, renew the bond letter and hold a meeting with sector authorities. The decision was communicated through official letter No. 164-2026-MINEM/DGE, dated January 27, 2026.
The request, submitted on December 24, 2025, sought to postpone for three years the start of work on the Pachachaca 2 hydroelectric plant, whose execution is scheduled to begin on May 1, 2026, and renew the letter of guarantee equivalent to 1% of the investment committed to the project, valued at US$ 24 million.
Minem’s refusal is based on a technical report, which concluded that the requests “are not viable.” In addition to denying the extension and renewal of the guarantee, the organization also rejected the request for a meeting with sector officials, a competence that, according to the official document, is not applicable under the conditions presented by the company.
The case has acquired political and public transparency nuances because Hidroeléctrica América’s request was presented three days before a meeting between Zhihua Yang and the President of the Republic, José Jerí, held in a restaurant in the San Borja district and which was not recorded in the official agenda of the head of state.
The meeting between the president and the businessman, now called ‘Chifagate’, has been one of the factors that has motivated questions from Congress, which has even led to the presentation of a presidential vacancy motion due to alleged moral incapacity, argued in part by the unregistered meeting with Yang.
Before Parliament, Jerí has maintained that “there is no current, current contracting process with the State” linked to the businessman, alleging that the activities of his company date back to administrations prior to his administration.
With the refusal of Minem, Hidroeléctrica América is obliged to start work on the Pachachaca 2 project on May 1, 2026 according to the original schedule. If it does not comply, the company could lose the concession and activate the guarantee letter deposited as guarantee.
The case continues to be under scrutiny in Congress and public opinion, amid broader investigations that involve not only the relationship between the Executive and Chinese businessmen, but also a preliminary investigation opened by the Attorney General’s Office against President José Jerí for unregistered meetings with Zhihua Yang.
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