Spotlight: Chile plans US$11bn in 2025 concessions

Chile’s concessions system looks to boost the momentum gained during the past two years during 2025, when the aim is to auction 17 contracts worth US$10.7bn.

Last year ended with two new tenders, a desalination plant for the drought-hit Coquimbo region (US$350mn) and a nationwide tsunami alert system (US$131mn), bringing the total of concessions auctioned during the current government to 13. 

The biggest project in the 2025 schedule is the long-awaited rail link between Santiago and Valparaíso (US$3.82bn), although the initiative suffered a setback last year as the tender for its integral studies, which are key to drafting the bidding documents for the concession, had to be relaunched after an initial attempt was declared void. 

Technical bids for the studies contract are currently scheduled to be opened on January 29, while economic offers would follow suit on February 20, according to procurement website Mercado Público. 

The winning bidder will have up to 455 days to finish the studies, putting in doubt whether the tender for the concession will be launched this year. 

Another project scheduled for 2025 that has been previously subject to delays is a US$313mn light rail link between the cities of Coquimbo and La Serena.

The link, which would mark the first time Chile’s concessions system has been used for a project of this kind, was originally scheduled to be auctioned in 2023 but it was eventually pushed back to 2024 and later to 2025.

The head of concessions office DGC, Juan Manuel Sánchez, told BNamericas in December that the government wants to avoid a “white elephant” situation by building a light rail link in an area without enough urban development, which would dampen demand. 

The other concessions set for 2025 tenders are:

Iquique-Alto Hospicio cable car (US$108mn)
Valparaíso cable car (US$78mn)
O’Higgins park stadium (US$29mn)
Santiago Norponiente orbital road (US$987mn)
Valparaíso peripherical road (US$815mn)
Santiago justice center (US$56mn)
Los Andes dry port (US$56mn)
Southern airport network. El Tepual-Cañal Bajo-Mocopulli-Pichoy airports (US$273mn)
Route 5 highway. Antofagasta-Iquique stretch (US$720mn)
Valdivia access roads (US$675mn)
Route 5 highway. Río Bueno-Puerto Montt stretch (US$310mn)
Route 57. Santiago-Colina-Los Andes (US$900mn)
Route 5 highway. Collipulli-Temuco stretch (US$320mn)
Villarrica route (US$608mn)
L-30 highway (US$600mn)

On the regulatory front, two bills aimed at streamlining permitting were submitted to congress last year. One of them, which aims to simplify sectorial permits, was approved by the lower house and is being reviewed by the senate.

Discussion of the second, designed to speed up environmental evaluations, began in the senate’s environment committee but it has yet to be voted on in the full upper house.