Spotlight: Construction of infra concessions involving US$5bn waiting to start in Chile

Construction of 15 Chilean infrastructure concessions that have been awarded or for which the tenders are close to concluding, and involving over US$5bn in investment, is waiting to start.

The projects are either under environmental evaluation, have just been awarded or are undergoing definitive engineering.

Some of the contracts were awarded during the previous government, such as Santiago’s Bicentenario cable car (US$79mn) in 2018, which was delayed as a lawsuit filed against its design forced a station to be relocated. Now work on the project is expected to begin this half, according to a report from concessionaire Teleférico Bicentenario.

According to the concessions office of the public works ministry (MOP), the five biggest contracts that have been awarded but where construction has yet to start are:

Route 5 highway. Santiago-Los Vilos stretch (US$1.15bn): Though not officially awarded yet, bids have been submitted, with Vías Chile presenting the lowest offer on August 14. It is considered the virtual winner since it already passed technical evaluation. 

The project entails improving and operating a 218km stretch of the country’s backbone highway between Santiago and the city of Los Vilos in Coquimbo region to the north. Works include replacing six bridges as well as widening 117km. The winning concessionaire will have to submit an environmental impact study to evaluation agency SEA. 

Route 5. Talca-Chillán stretch (US$782mn): Awarded in 2021 to China Railway Construction Corporation (CRCC). Though the firm has been operating the 193km highway stretch in the central-south zone since then, construction has yet to start on the main works included in the contract, a report from the concessionaire says. As of July, definitive engineering was 88.8% complete. 

The SEA is also reviewing a US$29.8mn EIS submitted by the concessionaire in August to replace 13 bridges and build five new ones.  

The main works involve upgrading a 193km stretch between Talca (Maule region) and Chillán (Ñuble).

Some of the works include widening 30km of roads, improving 36km of service roads and building a new 55.8km bypass around Talca. 

Route 5. Chillán-Collipulli stretch (US$580mn): Awarded to CRCC in 2022. As in the case of the Talca-Chillán section, construction has not begun since definitive engineering has not wrapped up and as of July was only 12.8% complete. The concession covers 169km between Chillán and Collipulli (Araucanía).

Works include replacing 14 bridges and repairing a further 48, building a new bridge across the Malleco river, road widening, new intersections and new accesses. 

Route 5. La Serena-Los Vilos stretch (US$496mn): Awarded to Sacyr in 2019. Also in the definitive engineering phase. The contract covers 229km between Coquimbo capital La Serena and Los Vilos, as well as a 16km urban stretch in the former city. 

Works include four new bridges within the interurban sections, plus two more in the urban area, one overpass, a new roundabout in La Serena and exclusive public transport lanes for the city, among others.

Santiago South Orbital highway (US$496mn): Awarded in June to Intervial, which will have to submit the project for environmental evaluation, according to the bidding documents. 

The project consists of a new 24km highway linking Santiago’s south access with route 78, which leads to the port city of San Antonio (Valparaíso).

As for projects under environmental evaluation, the SEA is currently reviewing Santiago’s new cancer (US$183mn) and neurosurgery (US$147mn) institutes, while an environmental impact assessment was submitted in recent days for the new Rengo hospital, which is part of the O’Higgins health network concession (US$185mn).