Chile's environmental approvals up in H1

A total of 135 projects involving investments of US$7.31 billion received approval from Chile’s environmental evaluation service SEA in January-June, up 16.4% from the 116 approvals for initiatives entailing US$4.54bn in the same period of last year.

The increase was largely because of a hike in energy projects given the green light, as 54 developments in this sector were awarded a favorable environmental qualification resolution (RCA) in 1H24, up from 38 in the first six months of 2023. 

The estimated investments involved in these energy initiatives also rose to US$4.76bn from US$2.76bn in 1H23, according to SEA’s latest monthly report.

Approvals for projects in the mining sector dipped to 10 from 14 in January-June last year, although the associated investments were up to US$153 million from US$116mn.

Meanwhile, approvals for real estate initiatives, which includes public infrastructure projects such as hospitals and sports centers, declined slightly from 26 favorable RCAs to 23 in 1H24, although the estimated investments were up to US$964mn from US$779mn.

Transport infrastructure approvals remained flat at four, while the investments involved were down to US$136mn from US$150mn.

Two favorable RCAs were awarded for water infrastructure projects, the same number as in 1H23, while the investments for these initiatives jumped to US$215mn from just US$2mn a year earlier.

There were no approvals for port infrastructure in January-June. 

SUBMISSIONS

A total of 273 projects were submitted for environmental assessment in January-June, down from 288 in the same period of 2023. The associated investments, however, were up to US$23.2bn from US$16.8bn, thanks to increases in initiatives for energy and green hydrogen, transport infrastructure and real estate, which offset a drop in mining projects. 

There were 91 submissions for energy development, up from 81 in 1H23, with the associated investments growing to US$11.5bn from US$5.86bn in the period.

Mining also saw an increase in project submissions, which climbed to 43 from 36. But the estimated investments were down significantly to US$4.45bn from US$7.23bn.

There were 60 submissions in the real estate sector in 1H24, up from 48 in 1H23, while investments were up to US$3.03bn from US$2.25bn.

Transport infrastructure only saw three submissions during the first six months of the year, unchanged compared with 1H23, while investments surged to US$529mn from US$70mn.

Submissions for water infrastructure fell to five from nine, but the associated investments were up to US$32.8mn from US$7.1mn.

Meanwhile, there were two submissions for port infrastructure worth US$16.3mn compared with three worth US$2.9mn in 1H23.

Projects classified as “others”, which include datacenters and green hydrogen initiatives, saw a drop in submissions, falling to 24 in 1H24 from 33 in the first half of 2023. The investments outlined jumped to US$3.14bn from US$499mn in the period.

JUNE FIGURES

Some 35 projects were submitted to SEA last month, down from 60 in May. However, the investments outlined were up, rising to US$4.81bn from US$2.72bn, thanks to large projects in mining and energy.

There were seven energy project submissions worth US$3.27bn last month, compared with 22 projects for US$2.07bn in May.

Ten submissions of mining initiatives involving US$1.3bn were made in June, up from six for US$128mn in May.

There were no submissions for transport infrastructure last month, compared with two for a combined US$129mn in May. It should be noted that one US$401mn highway project (see list) was submitted in the “arid extraction” subsection, which is counted under mining in SEA’s system. 

Water and port infrastructure each saw only one project submitted during June.

The biggest projects presented for evaluation at SEA last month were the Paposo pumping plant project (US$1.4bn), Los Colorados mine operational adjustments and continuity (US$344mn)
 the Altos de Tablaruca wind park (US$325mn), and improvements to highway 66 roads (US$401mn)

In terms of approvals, 20 projects worth US$1.33bn obtained positive RCAs during June, up from 18 proposals for US$588mn the previous month, thanks to increases in real estate and datacenter initiatives. 

Energy approvals dipped to seven from eight in May, but the associated investments rose to US$549mn in June from US$376mn in May.

There were no positive RCAs for mining projects last month, as with water and port infrastructure, and there was only one project approved in transport infrastructure, for an initiative costing US$10mn.

Real estate saw six RCAs awarded for investments totaling US$516mn last month, up from three for projects worth US$95.5mn in May.

Meanwhile, three approvals were given for other projects involving US$245mn in June, due to datacenter investments.

The largest projects to obtain a positive RCA in June were the Huechuraba data storage centers (US$205mn), ATID building complex (US$303mn) and San Javier solar park (US$150mn).