The Future of Chile’s Infrastructure – 2024/25 Project Pipeline Insights

 

Chile has seen great success over the years with its public-private concession system, which has significantly improved the country’s infrastructure. During the 2000s, Chile’s competitive ranking surged as upgrades were made to highways, roads, and ports. However, there was a slowdown in 2022 and 2023, with only a few infrastructure tenders being issued.

In 2024, the government renewed its focus on infrastructure, allocating more funds to the concessions office to hire additional staff for project preparation and inspections. The aim was to strengthen the office’s ability to properly prepare during the pre-investment stages, ensuring that projects could be executed on time and within budget. As of September 30, the office reported having spent 57.3% of its 2024 budget, marking its best nine-month performance since 2017.

This positive trend is expected to continue into 2025. The government recently announced plans to tender 22 contracts worth US$11.7 billion in late 2024 and throughout 2025. These contracts are in addition to the 40 ongoing projects, which account for US$9.67 billion in investments, and 10 more projects worth US$6.31 billion currently in the tendering phase.

2024-25 Infrastructure Pipeline

Santiago-Valparaíso train (US$3.28bn) – This passenger and freight rail project will connect the Metropolitan Region with the Valparaíso Region and consists of 2 stages.

The first stage extends from Quinta Normal to El Salto in the Valparaíso Region. Between Quinta Normal and Limache, the existing track will be used with substantial improvements in service standards from Batuco to Limache, with electrification of the network, overpasses, detours for crossings. The estimated time for this route is 1 hour and 30 minutes each way.

The second stage considers the works for a new access to Valparaíso and the development of a tunnel in La Dormida, adding 45 kilometers to the network. The trip between Valparaíso and Santiago would take between 45 and 50 minutes. The train will improve the economy, boost trade and revitalize communities that will see their local economy and job opportunities revalued.

Copiapó penitentiary complex (US$200mn) – The project involves the construction, operation, and maintenance of a new prison facility near Copiapó in the Atacama region. The concession covers the upkeep of the facility and the provision of penitentiary, mandatory special, and potentially additional services. The facility will accommodate over 2,100 inmates, with a focus on social reintegration through expanded spaces for education and work. It also includes 103 places for high and maximum-security inmates.

Route 5 highway. Caldera-Antofagasta stretch (US$931mn) – The project involves widening, upgrading, maintaining, and operating Route 5 between the end of the Vallenar-Caldera concession and the current Autopistas de la Región de Antofagasta concession. The design includes a dual carriageway with two lanes in each direction, allowing a service speed of 120 km/h, consistent with national road standards. The project also aims to enhance safety by segregating vehicular flows

Route 5 Antofagasta-Iquique (US$720mn) – The project involves expanding the Ruta 5 highway between the cities of Antofagasta and Iquique into a four-lane highway. The benefits of this initiative include improved safety standards, resistance to seismic movements and other natural hazards, and a design speed of 120 km/hr.

Route 5 Río Bueno-Puerto Montt (US$310mn) – The project consists of the improvement, construction, and maintenance of both the pre-existing works and the new works of Route 5 in the city of Puerto Montt. The project seeks to improve the technical standard and service levels of the route and, consequently, guarantee safety and comfort conditions for its users.

Route 5 Collipulli-Temuco US$320mn) – The project involves a new concession period for maintaining, operating, and carrying out works on a section of the Panamerican highway, Route 5, between the cities of Collupulli and Temuco. The initiative considers the improvement of the current dual carriageway, in addition to the construction of additional lanes in specific sectors, and rectifications for a design speed of 120 km / hr.

Route L-30-M (US$600mn) – The project involves widening and rehabilitating the highway, between the cities of San Javier and Constitución, to two lanes in each direction. In its current state, the highway is overburdened at peak times, and it records one of the highest accident rates in the region. The initiative is designed to address these issues and is also expected to benefit sectors such as forestry, fisheries and tourism.

Villarrica route (US$608mn) – The project consists of expanding the roadway of the existing route and incorporating a new layout to improve road safety and connectivity between the municipalities of Freire, Villarrica and Pucón.

Valdivia access network (US$675mn) – The project involves the expansion of the southern access and the northern access to the city of Valdivia to a dual carriageway, improving road safety conditions, service level and comfort for users on both routes. The project will allow users of the route to have a constant speed of between 100 and 120 km/h, and in sectors with specific restrictions 80 km/h.

Santiago north-west orbital highway (987mn) – The project corresponds to a concessioned highway that will connect the capital’s north-east access with the Santiago – San Antonio highway. The highway will pass through the communes of Colina, Lampa, Pudahuel, Maipú, Padre Hurtado and Peñaflor, Metropolitan Region, Chile.

Route 57 (US$900mn) – The project involves a new concession period for maintaining, operating a section of Route 57, between the cities of Santiago and Los Andes. The initiative contemplates the expansion to double lane or to third lanes in some sectors, the improvement of transversal connectivity especially in the metropolitan urban radius, the improvement and continuity of service streets, among others.

Alto Hospicio-Iquique cable car (US$108mn) – The project includes the construction and operation of a cable car that will link the cities of Iquique and Alto Hospicio. Aimed at alleviating traffic congestion between the cities, the cable car system would shorten travel time between both cities to 16 minutes and could transport up to 3,000 passengers per hour in each direction.

Valparaíso cable car (US$78mn) – The project consists of the construction, operation, and maintenance of a cable car system in Valparaíso, which will connect the upper areas and the City Plan with the existing public transportation network, such as the Valparaíso Metro. The initiative seeks to facilitate the transfer of those who live in the hills and must travel daily to the city center for work or school. Likewise, it is envisioned that the cable car system will increase the tourist attraction of the city of Valparaíso, generating new poles of attraction around the stations, and will offer a transport alternative to decongest the commune.

Concepción electromobility corridor. Route 150 (US$180mn) – The project includes a concession for the construction and maintenance of two bidirectional public transportation corridors located in the Bío Bío region, in southern Chile.

Concepción electromobility corridor. Route 160 (US$200mn) – The project consists of the construction of a public transport corridor in the middle of the Ruta 160 highway. It will benefit more than 250,000 people only in the districts of San Pedro de la Paz and Coronel. Its objective is to reduce the travel time of collective transportation, where around 80,000 people travel daily. It is expected that the travel time between Coronel and Concepción will decrease from 80 minutes to 50. 

Coquimbo region desalination plant (US$286mn) – The project calls for the financing, building and operation of one or more reverse osmosis desalinization plants in a defined area to provide water to meet both residential and industrial needs. It would centralize production for desalinized water in one area, eliminating the need to build several plants along the coast of the region, which has suffered from droughts in recent years. Water from the plant(s) could be supplied to the region’s water utility companies and to mines. The project will benefit 540,000 people, guaranteeing a stable supply of drinking water for the Coquimbo-La Serena region.

Los Andes Land Port (US$56mn) – The project contemplates the creation of a new intermodal transfer station and the expansion of the land port by 50%, with a permanent impact on the logistics and operational chain. The project will increase cargo transportation by train, completely interconnecting the rail network of the seaports of San Antonio and Valparaíso, as well as the south-central zone of the country with the land port of Los Andes. The new intermodal transfer station will focus on the transfer of containers or other cargo between trucks and trains, boosting the operation of international trade and optimizing international land transportation. In addition, it will mean greater efficiency in the processes, seeking to satisfy the growth in demand that the facility has had since it began operating in 2006.

Southern airport network – El Tepual, Cañal Bajo, and Pichoy airports (US$273mn) – The project includes the fifth concession of the El Tepual Airport, located in Puerto Montt, and the incorporation into the concession system of the Cañal Bajo airport, in Osorno, and the Mocopulli aerodrome, in Chiloé. The initiative seeks to expand the capacity of these facilities for the benefit of the Los Lagos Region community and advance in strengthening the country’s connectivity through a better airport network throughout the country.

La Serena-Coquimbo light rail (US$313mn) – The project corresponds to a new means of public transportation, which considers a tram-type light electric vehicle, which will improve the connectivity of the Coquimbo-La Serena conurbation. The work will reduce travel times and thereby facilitate the transfers of the inhabitants of both cities and other surrounding areas who need to travel between both communes.

Tsunami alert system (US$94mn) – The project consists of the construction and implementation of a warning and notification system for possible tsunami risks and evacuation processes based on a network of audible and visual alarm stations, which includes a redundant communication system and control centers at a regional and regional level. central.

O’Higgins Park Stadium (US$29mn) – The project involves incorporate improvements in the infrastructure and equipment of the Parque O’Higgins Stadium to hold larger events. The venue hosts 12,000 spectators.

Santiago Judicial Center (US$56mn) – No information to date.

Conclusion

Chile has seen significant improvements in its infrastructure over the past few decades, largely driven by its successful public-private partnership concession model. These improvements have elevated Chile’s global competitiveness, streamlined trade, enhanced public services, and promoted economic growth.

Although the country has been very successful over the years with upgrading major infrastructure throughout the country, there has been more difficulties over the last decade to carry out the same level of projects. As with other industries, the sector has had to deal with slow permitting and environmental evaluations.

In January 2024, the government submitted two bills to congress that are expected to cut permitting times that currently can take years. One of the focuses is on sector-specific permits and involves the creation of a new to oversee the coordination of hundreds of authorization processes that are currently handled by 38 public agencies and offices. The agency will be called the sectoral regulation and assessment service. The second entails several changes to the environmental evaluation system.

Chile has a healthy infrastructure pipeline that will provide opportunity for foreign investors and companies. Beyond tendering as a concessionaire, there are opportunities for engineering services, construction, complimentary services, products, and anything else that would be required for large infrastructure projects.

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