Investment by Chile's MOP remains flat amid coronavirus cuts

Investments made by Chile’s public works ministry (MOP) reached 440bn pesos (US$573mn) in January-April this year, almost unchanged from the first four months of 2019 in US dollar terms.

Although the amount in US dollars was flat year-on-year, the total investments made in local currency were significantly higher than the 387bn pesos reported last year because of the rise of the dollar against the peso, particularly after the social protests that started last October. 

Between January and April, the bulk of the MOP’s investments went to its road division, which accounted for nearly 273bn pesos, 10bn pesos less than in January-April 2019. The concessions office received around 85bn pesos, more than double the 31.3bn pesos reported in 2019, according to the MOP’s financial report.

Most of the other departments of the MOP saw lower investments than in 2019, such as the offices that handle airports (11bn pesos) and rural potable water (24bn pesos), as well as water authority DGA (129mn pesos).

Meanwhile, the port works office saw its investments rise to 20bn pesos in the period, while waterworks department DOH executed 27.3bn in investments.

During January-April, project investments reached 439bn pesos, above the 387bn pesos seen a year ago, but nearly the same amount in US dollars. Meanwhile, 945mn pesos was invested in basic studies, versus 571mn pesos in the first four months of 2019. 

The MOP’s 2020 budget was cut by nearly 350bn pesos as a result of fiscal belt-tightening amidst the COVID-19 pandemic, leaving it at 1.6tn pesos.

Most of the cuts will hit the roadworks division, while the budgets of water departments DGA and DOH will remain above the amounts originally approved for 2020, due to the water crisis affecting the country.