Chile unveils US$2.6bn public works tenders for 2025

Chile's public works ministry (MOP) has unveiled its first package of tenders for 2025, comprising 560 contracts involving investments of 2.36tn pesos (US$2.57bn), as the government aims to achieve record investment levels in its final year in office.

The MOP has invested approximately 3tn pesos annually over the past four years. However, as of the end of February, it had already surpassed the budget execution rate recorded at the same point in 2024, minister Jessica López said during a presentation of this year's tender package.

If the MOP can achieve 100% budget execution this year, the investments would total 3.8tn pesos, setting a record for the ministry.

"Those resources go straight toward economic reactivation," she said at a press briefing following the presentation.

Over the past two years, MOP has taken steps to accelerate investments, including modernizing its registry of contractors and consultants, increasing contract flexibility and expediting approvals from budget office Dipres.

When asked by BNamericas, López stated that pending bills in congress aimed at speeding up environmental evaluations and sectoral permits would also help MOP increase its investment rate.

"We hope that those bills will be approved soon because they will have an impact on public and private projects," she said.

At the same event, the head of MOP's general public works office (DGOP), Boris Olguín, told BNamericas that these efforts also consider fiscal balance, amid warnings that public debt levels are nearing 45% of GDP – the finance ministry's threshold for a prudent maximum.

"We are addressing that through the contractors' registry. The idea is to get ahead of the situation by reviewing the number of contracts companies hold, as well as their investment amounts," Olguín said.

He explained that the goal is to ensure that bidders have the financial capacity to successfully carry out contracts, preventing issues such as cancellations and re-tenders that would require MOP to allocate additional funds.

The tender program

Of the 560 contracts to be tendered, 348 are for physical works, 60 for studies and 152 for consultancies.

Within the latest tender package, 229 contracts worth 1.23tn pesos correspond to MOP's roadworks division.

The ministry's architecture office, which also executes projects funded by other ministries – including hospitals, penitentiaries and schools – has 68 contracts worth 406bn pesos.

The waterworks department (DOH) has 69 contracts valued at 274bn pesos, while the airport division has 62 tenders totaling 226bn pesos.

Some 97 contracts will be tendered for rural water services, but in terms of investment, it ranks second-last with 149bn pesos.

Port infrastructure comes last, with 35 contracts worth 1.95bn pesos.

Interested companies can access the full plan through MOP's contractors' registry.