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Chile Infrastructure Pipeline for 2020

Over the last 2 months, many countries around the world have been providing financial assistance to both companies and workers in order to manage the covid-19 emergency. Without this assistance, most countries would have faced even more crippling unemployment and negative growth. 

The first wave of stimulus has been in most cases helpful, but the fight will surely change as countries get a grip on the virus and start looking closer at recovering their economies. Over the next few months, we expect to see plenty of announcements related to infrastructure spending in order to assist the different economies with getting back on their feet. 

In fact, Chile has already announced their infrastructure concessions for 2020 of which we have provided a quick overview: 

Chile’s public works ministry (MOP) has set out the schedule for US$3.6bn in infrastructure concessions for the period between April 2020 and March 2021, involving some 14 projects.

The preliminary schedule entails 10 projects entailing contracts worth US$2.9bn for the remainder of this year and four contracts that involve US$700mn for the first quarter of 2021, the MOP’s concessions office stated in its annual report. 

Project Pipeline:

The projects named in the schedule are the following:

Biobío hospital network (US$360mn): To be tendered in the 2Q20. This would be the third tender in the government’s US$2.5bn PPP program, following the Maule hospital network in December and the Buin-Paine hospital on April 30. The contract entails the construction of the new Santa Bárbara, Coronel, Nacimiento, and Lota hospitals, which are expected to add 569 beds to the region’s health system.

Coquimbo hospital (US$300mn): Also to be tendered this quarter and included in the PPP program too. The contract entails building a 102,000m2 hospital to serve the city of Coquimbo with capacity for 600 beds, according to the health ministry (Minsal).

Valdivia health network (US$180mn):  This is another PPP package that is due to be tendered during the third quarter of 2020. The contract involves building the hospitals of La Unión, Río Bueno and Los Lagos in the Los Ríos region. These are expected to make an additional 270 beds available.

Digital Bus Stop concession (US$40mn): To be tendered during 3Q20, this contract entails the operation of 500 bus stops in Santiago’s RED BRT system. These bus stops will have digital screens, internet connections and access turnstiles, among other features.

Ruta 78 Highway Second Concession (US$536mn): To be tendered during 4Q20, this involves the operation of the 132km highway between Santiago and the port city of San Antonio (Valparaíso region). The new concession also involves replacing the current toll stations with toll TAG gates.

Santiago Airport Road Access Third Concession (US$42mn): This concession will be tendered during the fourth quarter of this year. It involves operating the 10km road access to the Arturo Merino Benítez airport in Santiago, as well as finishing pending works on the northern access road. 

Ruta 5 Highway-Chiloé Longitudinal Road (US$503mn): Originally scheduled to be tendered in 2019, it is now expected to be offered to investors in late 2020. The contract involves widening 106km of the Ruta 5 north-south highway on the island of Chiloé, plus building the access road to the Chacao bridge. The project also includes a 17km bypass for the city of Castro.

La Serena Hospital (US$300mn): To be tendered as a PPP during the fourth quarter of this year, this contract entails building a 120,000m2 hospital in La Serena (Coquimbo region), which will have capacity for 668 beds, according to the Coquimbo regional government. 

Ruta 5 Highway Caldera-Antofagasta Stretch (US$628mn): To be tendered during the fourth quarter, this contract involves widening, improvement and maintenance works on 470km of roadway between Caldera and the city of Antofagasta.

Araucanía Airport Second Concession (US$84mn): The last tender scheduled for 2020, this contract involves expanding the airport’s area to 10,000m2, the head of the region’s MOP office Henry Leal was reported as saying by Radio Cooperativa last year. 

National Cancer Institute (US$260mn): To be tendered during the first quarter of 2021 as a PPP, this involves building a clinic in Santiago’s Independencia district with capacity for 249 beds.

O’Higgins hospital network (US$170mn): To be tendered as a PPP package during the first quarter of 2021, this involves building the new Rengo and Pichilemu hospitals, which are expected to provide an additional 256 beds in total.

Santiago Southern Orbital Road (US$270mn): To be tendered in the first quarter of 2021, this contract entails a 24km highway connecting the municipalities of Calera de Tango, San Bernardo and Peñaflor. The new road will also have access to the Ruta 78 and Ruta 5 highways, Santiago’s southern access highway and the Lonquén road.

Tsunami Alert System (US$60mn): This contract requires the installation of a communications system with alert stations throughout the country, in order to help emergencies office ONEMI issue evacuation alerts more rapidly.

Harris Gomez Group is a Common Law firm, with offices in Santiago, Bogotá, and Sydney. We also have legal teams in Peru, Bolivia, Ecuador, Brazil, and Argentina. Over the last 19 years, we have been supporting foreign companies with their growth in Australia and Latin America. Many of our clients are technology companies, service providers and engineering companies that focus on the mining, energy and infrastructure markets.

To better understand how we can support your management team in the Region, please contact Cody Mcfarlane at cmm@hgomezgroup.com