After 16 months, Chile launches first infra concession tender under Boric

The concessions office of Chile’s public works ministry (MOP) launched its first tender since President Gabriel Boric took office in March last year. 

The move follows criticism from local infrastructure players over the perceived lack of activity on this front under the current administration.

The auction has a reference price-tag of 28.3mn UFs (inflation-indexed units, US$1.3bn) and involves the new concession for the operation and improvements to the Santiago-Los Vilos stretch of route 5, the country’s main north-south highway.

The stretch is 218km long plus the 5.2km El Melón tunnel. 

Works include widening the highway, bridge replacements and new pedestrian bridges, among other things. 

Technical bids will be opened on March 28, while economic offers will be unveiled on April 26. Documents related to the tender will be published here (in Spanish).

In response to criticism about the dearth of new concession tenders, public works minister Jéssica López argued that the lack of new auctions was caused partly by the backlog left by the previous administration for several ongoing processes that the new authorities had to award first. 

For the rest of this year, MOP is expected to tender an additional 10 contracts worth over US$4.4bn.

The head of concessionaires association Copsa, Leonardo Daneri, said he welcomed the tender announcement given the country’s infrastructure deficit that he says has dragged on for a decade.

“We also want to insist on reviewing the multiple roadblocks to project execution, as without this [the Santiago-Los Vilos highway] and other urgent projects won’t be completed on time,” he told BNamericas, saying that on average infrastructure initiatives in Chile take four to five years to even begin the construction phase.