Chilean President Michelle Bachelet travelled to Buenos Aires Monday to discuss bilateral issues, such as integration initiatives, with her Argentine counterpart Cristina Fernández.
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One of the projects on the agenda is the construction of a low-altitude rail tunnel at the Los Libertadores international pass area, connecting central Chile to central western Argentine province Mendoza.
The US$3bn project, which consists of constructing a 23km tunnel at an altitude of 2,500mn, was submitted as a private initiative to the governments of both countries by Argentine firm CASA and Brazilian firm Camargo Corrêa.
Both Bachelet and Fernández have declared the initiative of public interest, meaning the companies can carry out technical, financial and environmental feasibility studies to draw up a preliminary design.
The presidents are expected to address the rail tunnel project and all the aspects related to it, including improvements to the highways that would connect the system's multimodal stations in the Andes to both countries' main highway networks, an official from the Chilean presidential office told BNamericas.
Bachelet and Fernández are also expected to talk about possible changes to the project, including a proposal made by Chilean engineers who favor a 27km tunnel at 2,300m, the official said.
Meanwhile, Chilean concessionaires association Copsa has met with CASA and Camargo Corrêa to express its interest in taking part in the project, as well as in the construction of a highway along the tunnel, Copsa president Herman Chadwick told BNamericas in a past interview.
Copsa's proposal raises another issue to be addressed at the meeting, which is to ensure a stable concession model in both countries, minimizing risk for investors, to guarantee the project's execution, said the official.
Former Argentine President Néstor Kirchner - Fernández's husband - nationalized the country's rail network during his administration. This led to the failure of a tender process held in 2007 for the construction of the Trasandino Central rail system in the same area.
The financial aspect of the project is also expected to be a topic at the meeting, as analysts agree that the global market downturn could have an effect on infrastructure projects, as it will likely be harder and more expensive for companies to obtain capital from financial institutions, the official said.
The presidents are also expected to discuss other international passes connecting the countries, in an effort to improve integration and increase the competitiveness of both nations by optimizing trade infrastructure and reducing cargo transport and logistics costs, the official added.
An official release on the meeting is expected to be published on October 7.
