Ministry preparing 2005-2006 concessions timetable

Chile's public works ministry is expected to release in coming months its concessions works timetable for the 2005-2006 period, a spokesperson from the ministry's concessions department told BNamericas. Specific project details were not provided, as bidding processes for some projects may still be launched this year. The required investment on those projects still awaiting a call for bids from the 2003-2004 timetable is over US$1bn. The figure represents three hydraulic works projects that total US$314mn and 13 transport infrastructure projects that total US$690mn, some of which the private sector has proposed. HYDRAULIC WORKS One hydraulic work under evaluation for inclusion in the new timetable is a US$130mn, 100M cu. m. irrigation system for the Aconcagua valley in central Region V, one of the country's principal export agricultural growing areas. The other two projects are dams, the US$150mn Punilla dam for Region VIII and the US$34mn Ancoa dam in Region VII. TRANSPORT INFRASTRUCTURE On the highway front, the largest project - in terms of required investment - is a US$153mn, 335km network for Region II, followed a US$105mn, 415km project to revamp the La Serena-Caldera stretch of the Pan-American highway in Regions III and IV. Two smaller highway projects entail a US$19mn, 32km work to connect Melipilla, a satellite city southwest of capital Santiago, with highway Ruta G-60; and a US$15mn project to improve a stretch of the G-21 road that leads to ski areas east of Santiago. Public transport has also taken center stage in Chile, the most emblematic project of which is Santiago's Transantiago, where there are still a few remaining calls for bids to be launched to build and maintain transport corridors, transfer stations and intermodal stations. Total required investment in this area reaches some US$225mn. Meanwhile, some US$70mn will have to be invested in the Chilean part of a project to the rehabilitate rail service between Region V and Argentina's Mendoza province. There are also a couple of projects for the country's waterways, one of which is a US$20mn project to maintain and operate a system to increase connectivity in southern Region X; and a US$10mn project in Region XII to improve the Kirke Passage to allow cruise ships and other large vessels to enter Almirante Montt gulf and on to Puerto Natales port. Finally, there are plans to build and operate two new airports in Regions IV and IX, which would require US$25mn and US$48mn, respectively. SKEPTICISM However, many have dismissed the ministry's planned concessions as a "wishlist" due to the required investment of some of the more expensive projects, and others acknowledge that although these projects may be good socially, from a strictly business perspective they are not attractive to the private sector. Chile's construction chamber questions the financial feasibility of such projects, arguing that the majority of the concessions that were really attractive and could have been privately financed have been done. Remaining concessions will be more difficult to finance or will require a state subsidy, according to the chamber, which is pushing for smaller, less grandiose and lower-profile projects, which would open the door to local operators. Meanwhile, the country's public infrastructure works concessionaires association Copsa says the more expensive projects will require greater state participation to the point of needing subsidies.