Govt. modifies Talca-Chillán hwy. concession contract

Chile's government has modified highway concessionaire Talca Chillán Sociedad Concesionaria's contract, the concessionaire said in a filing to the country's securities regulator (SVS) Wednesday. Under the modification, the concession ceases to be a fixed-term contract due to the implementation of an income distribution mechanism (MDI). The contract's new expiration date now depends on when a total guaranteed income equal to some US$295mn is reached. In general terms, under an MDI, the government will insure revenue against a sudden drop in passenger flows in return for a premium paid via additional public works construction. In the case of Talca Chillán, the additional investment will be for some US$26mn. The concessionaire won its 11.5-year operation and maintenance concession for the highway between the cities of Talca and Chillán in Regions VII and VIII in 1996. The 193km stretch is part of the Pan-American Highway (Ruta 5). Cintra Chile (43.4%), Empresa Constructora Delta (27.4%), Constructora Delta Ferrovial (13.1%), Inversiones Sodeia Cinco (15.9%) and Ferrovial Agroman Empresa Constructora (0.14%) make up Talca Chillán Sociedad Concesionaria.