Chilean public works minister presents over US$11bn concession portfolio in China

This is an automated translation of the original release published in Spanish.

Statement from the Ministry of Public Works of Chile

The minister of public works, Jessica López, presented a portfolio of 27 projects this Tuesday at a seminar in Beijing, China, which will be tendered between the end of this year and 2025. The event included the participation of around twenty companies from the Asian giant.

The event organized by Invest Chile within the framework of Chile Week, is part of the tour of that nation led by President Gabriel Boric that ends this Wednesday, October 18, and whose objective is to attract investments and enhance trade between the two nations.

In addition, the head of the portfolio held bilateral meetings with companies such as China Railway, China Harbor Engineering Co.,Cpecc , Euroports and others.

Currently, China represents 8% of the total investment committed to the concession system, an amount equivalent to approximately US$2bn. “For us, attracting foreign investors is essential. We have a very ambitious investment portfolio, for more than US$11bn, during the remainder of President Boric's government, and by 2027 it will be US$15bn. China has tremendous potential to be able to carry out these works and that is what we are going to offer over these days,” said the minister.

In this sense, he highlighted that Chinese companies are currently operating concessions on Route 5 South, on the Talca-Chillán and Chillán-Collipulli section. They are in the process of constructing the El Maule hospital network and the Coquimbo hospital, and in the process of awarding the O'Higgins hospital network. In addition, they have been awarded the contract for the Las Palmas Reservoir.

The portfolio presented

Minister Jessica López highlighted that “in 30 years we have demonstrated as a country that public-private partnerships have been successful and that they are attractive to foreign investors. We are very optimistic about this trip, where I will continue meeting different companies and investors to whom I will show the different projects that can be an opportunity, both for them as investors, and for us who will have new infrastructure.”

In this sense, the MOP minister said that the benefits of investing in Chile include respect for Chilean laws and international treaties, which provides legal certainty; economic freedom; non-discretionary procedures, and non-discrimination.

“I think that the benefits of direct investment in Chile are rarely highlighted. Those who invest in our country, in addition to having legal certainty and clear rules, have the right to participate in the formal exchange market; to remit the invested capital and the profits produced by the investments; to request exemption from Value-Added Tax (VAT) when importing capital goods, among other benefits that are another incentive to become our partners,” added the minister.

The projects include Route 5 Sur (Iquique-Antofagasta, Caldera-Antofagasta, Temuco-Río Bueno, Río Bueno-Puerto Montt and Collipulli-Temuco); the Pie de Monte Route, the accesses to Valdivia, the Concepción electrocorridors; the North-West orbital, the semi-circuit or “peripheral” of Valparaíso; the Copiulemu-Hualqui-Puerto Coronel road connection, and the concession of Route 57 Santiago-Colina-Los Andes.

Investors will also be sought for the second concession of the airport in the Araucanía Region, the Northern airport network (Andrés Sabella and Desierto de Atacama), and the Southern airport network.

In the area of citizen security, natural disasters and emergencies, the minister also detailed the concessions for penitentiary centers.