Bonds will be issued via three series and the company raised the amount it seeks to raise.
The project entails the construction of a reverse osmosis plant with capacity to produce up to 1,000m3 per second, which would benefit both industrial and domestic users in the Valparaíso region.
The institution plans to provide more financing and even acquire minority stakes in private sector companies.
Benjamín Morales, former head of the local national glacier and mountain ecosystems research institute, said that the country's last water reserves will disappear by 2111.
Irrigation and drainage service Senara and state power company ICE were responsible for the designs.
With little room for state water utilities to increase tariffs, PPPs represent a viable alternative to move projects forward, an analyst tells BNamericas.
One of the new entity's responsibilities will be to regulate the water concession held by Grupo MAS.