Argentina, Chile to begin Agua Negra tunnel with IDB support

The Inter-American Development Bank (IDB) has announced the approval of a US$40mn loan that will allow for the start of the tender process for construction of the Agua Negra tunnel between San Juan province in Argentina and the Coquimbo region of Chile.

The Structuring Program for the Paso de Agua Negra International Tunnel (PETAN by the Spanish acronym) will finance the structuring and preparation of the project, assisting authorities of both countries in legal, technical and environmental consultation, institutional strengthening and the final engineering design for the tunnel, the IDB stated in a release.

The program consists of two technical cooperation loans for US$20mn each, one for Argentina and one for Chile, both with an execution period of two years.

PETAN is the first IDB support program for Argentina and Chile in the preparation of a series of loans for the tunnel's engineering project, as the cost of construction will be an estimated US$1.5bn over eight and a half years.

The tunnel is described as key for the improvement of trade integration between the two countries and the region.

The current Agua Negra mountain pass, located 4,765m above sea level, is used by between 8,000 and 10,500 vehicles a year, but it is not equipped to handle freight transport. Between the months of May and October the route is closed due to extreme weather conditions and snow.

The new tunnel will be 13.9km long and will stand at an altitude of 3,620 to 4,085m above sea level, and allow for the passage of freight trucks, reducing the length of the pass by 40km compared to the current route, cutting of travel time by about three hours, and increasing road safety.