Chile Plans Highway Tenders

Seven Major Concessions Planned

The Chilean Ministry of Public Works has announced plans to tender for seven major highway projects across the country, with potential for significant breakbulk demand across the country.

The plans have been launched by the Concessions department of the ministry and include tenders for engineering studies that will be launched in the first quarter of 2020.

“There is much interest in infrastructure investment at the moment. That has to do with a wide range financing options at convenient rates. Besides, Chile has an adequate risk profile thanks to its macroeconomic performance, political stability and 26-year-old regulatory scheme for public-private partnerships,” said Juan Andrés Fontaine Talavera, ex-economy minister.

Four New Routes
The seven concessions under consideration are:
• Northern Access to Concepción.
• Highway 5: Santiago – Los Vilos.
• Route 57: Santiago – Colina – Los Andes.
• Periférico Valparaíso.
• Orbital Santiago Norponiente.
• Route L-30.
• Route I-90.

Three of the projects are retenders, scheduled to take place between 2019 and 2023, while the remaining four are for new road concessions.
One of the largest projects will be the Orbital Santiago Norponiente ring road, part of a wider project to build a ring of highways around the capital, Santiago.

PPP Investment
The proposed highway projects are part of a push by government to expand its PPP portfolio of investment which has inlcuded the annoyuncement of about 60 projects in total, worth as much as US$14.6 billion.

“We are planning to tender projects [worth] about US$2.8 billion per year. There are about 22 road projects, half of which entail the renewal of existing concessions that are about to expire. The program is still in its infancy. We are getting started now; we had a few tenders in 2018 and another few at the beginning of 2019,” Talavera added.
Last year, the Chilean government established a new state-owned company to manage capital for its various infrastructure project, backed by a US$9 billion fund. The company, Fondo de Infraestructura, is owned and controlled by the treasury is responsible for issuing debts and guarantees for projects.