Chile’s construction chamber slams proposed concessions ban

A proposal to ban Chile from awarding highway concessions, which passed a first commission vote in the constitutional convention, is seen as a risk by the country’s construction chamber (CChC), even if the motion doesn’t achieve the two thirds majority it needs in the full convention to become part of the country’s new constitution.

“We believe that such extreme initiatives shouldn’t ultimately succeed,” CChC’s infrastructure manager Carlos Piaggio told BNamericas during the Canada-Latam Infrastructure Forum.

The proposal, which was approved in principle by the convention’s environment and economic model committee, would also prevent the charging of tolls.

Piaggio defended the current system, saying that while there is room for improvements, it alleviates the burden on the state.

“The government wants to make a lot of investments regarding social issues, and we will also face a period of economic slowdown,” he said, citing the low growth projections for this year and 2023. 

Piaggio also presented the five-year concession plan approved by the public works ministry (MOP) in February, before President left-leaning Gabriel Boric took office this month, which entails 56 projects involving nearly US$16.7bn.

The schedule, which can be seen here, is:                         

2022. 13 tenders involving US$4.98bn
8 highways (US$4.37bn)
2 airports (US$184mn)
1 cable car (US$84mn)
1 hospital (US$247mn)
Tsunami alert system (US$101mn)

2023. 15 tenders involving US$4.88bn
6 highways (US$2.6bn)
2 public buildings (US$51mn)
3 reservoirs (US$1.12bn)
3 light rail links (US$978mn)
1 airport (US$110mn)

2024. 7 tenders involving US$4.65bn
3 highways (US$1.38bn)
1 rail line (US$3bn)
2 public buildings (US$120mn)
 1 airport (US$150mn)

2025. 7 tenders involving US$1.08bn
1 highway (US$150mn)
3 public buildings (US$309mn)
2 rail lines (US$541mn)
 1 cable car (US$84mn)

2026. 7 tenders involving US$1.03bn
 2 highways (US$728mn)
1 cable car (US$50mn)
4 public buildings (US$252mn)