Chile aims for infra investment jump in Q4

Chile’s public works ministry (MOP) improved its spending numbers this year and is aiming to execute 100% of its 3.5tn-peso (US$3.77bn) investment budget by the end of 2024.

“If it’s not 100% we hope it will be around 99%. We’re very confident,” minister Jessica López told a press conference.

By September 30, MOP had spent 2.03tn pesos or 57.3% of its 2024 investment budget. 

That is the most investment for the first nine months ever and the highest percentage since 2017, when it reached 60.4%.

Among the reasons, López highlighted tender schedules published in January and August, work to increase the number of bidders in the tenders, reducing waiting times during auctions and allowing MOP’s early intervention in abandoned projects. 

The ministry now has 2,221 projects in execution as a result. The minister also said MOP’s investment budget in the 2025 budget bill is similar to that of 2024. 

When asked about a bill to simplify sector permits, which was recently approved by the lower house of congress and sente to the senate, López said her office has high expectations since it would also affect permits that are under MOP’s jurisdiction.

“We hope that this will help to accelerate the ministry’s work,” she said.

The bill would create a new agency to coordinate hundreds of authorizations that are currently handled by 38 public agencies and offices. 

CLIMATE CHANGE POLICY

López also presented an update of MOP’s sustainability policy on Monday at a separate event. 

The document’s citizen consultation stage is set to finish on October 11 while a definitive draft must be approved by a ministry council by December 13. 

The plan has four specific objectives (integration, planning, coordination, cooperation) and a total of 17 measures that include strengthening the country’s road network and water infrastructure, integrating climate change criteria in pre-investment studies, measuring carbon footprints, managing construction waste, and promoting water and energy efficiency.

“I’m convinced that our country needs a massive infrastructure shock to continue its economic development,” López said at the event, adding that such an impulse must also adjust to Chile’s new climate reality, with some areas experiencing severe drought while others are under constant risk of flooding.