Chile plans to return to prison construction concessions

While Chilean authorities are planning to grant prison construction concessions over a decade after the last such contract was awarded, they are also cautious not to repeat past mistakes.

Chile’s prison population jumped 44.8% to 57,048 between 2022 and June 2024 as more people are jailed while awaiting trial, justice minister Luis Cordero said during a prison concessions seminar hosted by Universidad Católica.

But infrastructure has not kept pace and existing facilities are overcrowded.

The governments of Michelle Bachelet and Sebastián Piñera abandoned prison concessions as they had to focus on economic downturns and the COVID-19 pandemic, and now there are 10,000 more prisoners than the infrastructure was planned to house. 

Cordero said concessions also did not work because of longer-than-expected construction times and high costs, issues the authorities are working to resolve. 

“There have been some lessons learned, such as taking out some services that were in previous contracts. Regarding construction costs, we are in a better place nowadays than in the worst stage of the pandemic. That gives more certainty to bidders and helps to keep budgets stable through time,” the head of the public works ministry’s (MOP) concessions office, Juan Manuel Sánchez, told BNamericas after the event.

Chile’s first prison concession in 15 years for the new US$63 million Talca penitentiary received a single bid from Constructora San José last week.

Sánchez said the next tender is planned to take place later this year and will be for a US$200mn facility in northern Copiapó city. Awarding is scheduled for the first quarter of 2025.