Chile Infrastructure: Spending and Tenders

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Spending by Chile’s public works ministry has remained stable compared to last year, despite the difficulties brought on by the COVID-19 pandemic. The 2020 infrastructure budget stands at 2.9tn pesos (US$3.7bn), of which 57% had been spent as of August.

Just this week, Chilean lawmakers have approved the country’s 2021 budget bill which calls for US$73.2bn in spending. A key focus of the budget is employment and economic recovery. The spending pots made available for housing and public works are the biggest in 30 years.

The 2021 budget is 9.5% bigger than this year’s and includes an increase of around 15% in public investment. The roadworks department of the ministry had its budget raised 34.3% to 1.7tn pesos. It plans to spend 1.2tn pesos on investment plans, 4.3% more than this year. Increases have also been made in the proposed budgets for the departments of water works (+64.5%), ports (+15%), airports (+71.8%), water authority DGA (+56.6%) and water services regulator SISS (+11.9%).

In the last few weeks, there has been a number of tenders and projects announced: 

Chile launches studies tenders for 2 road concessions

Chile’s public works ministry (MOP) has launched two road concession study tenders in Metropolitan and Valparaíso regions.

One contract has a 2.2bn-peso (US$2.9mn) budget and entails defining the conditions for the upcoming route 57 concession (pictured) re-tender, which covers 117km between Santiago and the city of Los Andes in Valparaíso region.

The new tender, with a budget of around US$340mn, is expected to be launched in 2023, according to the MOP’s concessions office.

Technical bids for the study contract will be opened on March 15, while economic offers will be unveiled on April 14 next year. Documents can be seen here, in Spanish.

The other study has a 4bn-peso (US$5.2mn) budget and entails determining the feasibility of a concession for an access road system for Valparaíso city and the nearby municipalities of Viña del Mar and Concón.

The project involves a 48km corridor between the accesses of Valparaíso and Concón. It should also link to route 68 (Santiago-Valparaíso), Viña del Mar’s access roads and route 60 CH, which leads to the border with Argentina.

Technical bids for this study will be opened on March 3, while economic offers will be unveiled on April 5. Documents can be seen here, in Spanish.

Chile submits EIS for Atacama flood control works

Chile’s public works ministry (MOP) submitted an environmental impact study (EIS) to carry out flood control works in the municipality of Tierra Amarilla in northern Atacama region, which was affected by floods in 2015.

The US$30mn project focuses on a 59.2km section of the Copiapó River, as well as five ravines, the EIS shows.

The works include canalization along the river, contention walls and dams in the ravines and pedestrian bridges. Work is expected to start in June 2022.

Chile launches airport maintenance tender

Chile’s public works ministry (MOP) launched a 9.5bn-peso (US$12mn) tender for maintenance and conservation works at Carriel Sur airport that serves Concepción, capital of Biobío region.

The contract covers works on the airport’s 2,600m runway, as well as on roads and the airport’s drainage infrastructure, according to the tender notice.

Technical bids will be opened on January 18, while economic offers will be unveiled on January 25. Documents can be seen here, in Spanish.

Chile submits EIA for Pan-American Games Villa

Chile’s housing ministry (MINVU) has submitted an environmental impact assessment (EIA) for the villa to be built to host 8,000 athletes and staff during the  2023 Pan-American Games in Santiago.

The US$51mn project involves building a 71,101m2 complex in Santiago’s Cerrillos district, which will have 1,347 housing units, plus 814 parking spots, according to the EIA.

Works are expected to begin in June 2021 if the EIA is approved. 

The construction works are currently being tendered by MINVU and the contract is expected to be awarded shortly, according to the official website of the Santiago games. 

Santiago metro readies study tenders for line No. 6 extension

Metro de Santiago is preparing two study tenders for the extension of line No. 6, which is part of the US$2.5bn project to build line No. 7.

The first auction involves specialized engineering consulting services and the second will cover conceptual and basic engineering studies, according to media ads by the operator.

Bidding documents will be published on Metro de Santiago’s website on October 15. They will remain available until October 21 for the first contract and until October 22 for the second.

While the operator didn’t publish a bid opening date for the consultancy services, offers for the conceptual and basic engineering studies will be opened on December 21. 

Chile Readies Tenders for US$3.6bn Port

Chilean state port operator EPSA is planning the launch of tenders next year to build a US$3.6bn large-scale port in San Antonio, Valparaiso region. 

The construction of the port is expected to begin in 2022 or 2023.

The breakwater will be 4km long and divided into two sections, one (1.5km) will run at right angles to the coast, while the second (2.5km) will run parallel.

The first terminal is dubbed terminal mar, or TS1, and it will have a 98.2ha surface and two 730m berthing sites. 

The expectation is that this terminal will begin operations in the first quarter of 2030 with capacity to move 3mn TEUs per year.

Regulator to decide on US$350mn Chile Desal Plant

Chile’s environmental evaluation service SEA will vote on Tuesday on the US$350mn desalination plant in Huasco municipality (Atacama region).

Mining firm Atacama Sur submitted the project in May 2019.

Treated water will be transported from the 2,000l/s Cerro Blanco plant via a 19km pressure pipeline to a distribution center in Freirina municipality, according to the environmental impact study.

The water will be sold to industrial clients to “prevent the usage of water extracted from natural sources.” 

Harris Gomez Group is a Common Law firm, with offices in Santiago, Bogotá, and Sydney. We also have legal teams in Mexico, Peru, Ecuador, Brazil, and Argentina. Over the last 20 years, our team of English speaking Lawyers and Attorneys have been supporting foreign companies with their growth in Latin America. Many of our clients are technology companies, service providers and engineering companies that focus on the mining, energy and infrastructure markets. 

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