Waterworks bill seen as key for Chile's desal ambitions

A bill that would enable Chile’s public works ministry (MOP) to carry out multipurpose water infrastructure works, seen as key for the government’s agenda of building more desalination plants, is expected to become law before the end of this year. 

The so-called “short bill” has already been passed by the lower chamber of congress and must now be reviewed by the senate.

“We need to feel reassured that this is going to become a law,” public works minister Jessica López told BNamericas after a speech at the biennial conference of the Latin American desalination and water reuse association (Aladyr), where she voiced her hopes that the legislation would be passed quickly this year. 

In her address, López said that the current regulation only allows the MOP to carry out large water infrastructure projects, whether public works or concessions, if they are intended to meet the water needs of the agriculture sector.

In theory, this would prevent MOP from launching two concessions it has planned to build desalination plants for the Coquimbo (US$286mn) and O'Higgins (US$171mn) regions, as they are aimed at supplying water for human consumption.

The desalination plants currently operating in Chile have been developed either by mining firms or water concessionaires. 

López told BNamericas that she also expected desalination plants to become multipurpose facilities in the future. 

She also said during the Aladyr conference that Chile should start planning future plants now, pointing to the examples of the Arica y Parinacota region and the city of Los Vilos in Coquimbo region, which that are struggling to meet potable water supply. 

INCENTIVES 

At the Aladyr conference, María José Zegers, partner and founding member of local law firm Zegers, told BNamericas that Chile should include subsidies for desalination projects outside the mining industry.

“If desalinated water is used for potable water or irrigation, then it could have a subsidy, and then the question is whether that subsidy should be provided through demand or offer,” she said.

For example, a subsidy based on demand would entail giving funds to farmers to purchase desalinated water, which is often more expensive. 

Meanwhile, a subsidy based on offer, for example, would have the MOP cover the costs of building a desalination plant, while users would only pay for operational costs through their bills, she explained.