Chile’s US$28bn infra agenda: The biggest projects Kast wants to prioritize

Chile's public works ministry (MOP) outlined 70 projects worth US$28 billion (bn) to be prioritized during the current government (2026-30) with an emphasis on penitentiaries and roadworks.

MOP already saw resource cuts in the 2026 budget bill and the new right-wing administration, which took office on Mar 11, plans to implement an additional 3% cut across all ministries, in line with President José Antonio Kast's pledge to improve fiscal performance.

Because of this, many of the projects prioritized by minister Martín Arrau are already under execution, such as the second section of the AVO expressway (US$805mn) and the Chacao bridge (US$760mn), according to MOP documents cited by Diario Financiero.

In the case of projects that have yet to begin execution, the most relevant investments are:

Coquimbo desalination plant (US$318mn): Formally awarded to Sacyr on Apr 13, this is MOP's first-ever desalination concession. It involves a reverse-osmosis facility with capacity of up to 1,200 liters per second (l/s), as well as the installation of an 18.7km conduction pipeline and a storage tank with capacity of up to 8,000 cubic meters (m³).

The project is currently under environmental evaluation.

Route 5 highway, Collipulli–Temuco stretch (US$621mn): Scheduled to be tendered this year, it entails the upgrade and operation of a 144km stretch between the cities of Collipulli and Temuco in Araucanía region.

Works include widening 85km, two new bridges over the Toltén river and seven new road links, according to MOP documents.

The road's current concessionaire is ISA subsidiary Ruta de la Araucanía. The contract expires in October 2026.

Santiago Norponiente orbital highway (US$1.75bn): Also expected to be tendered in 2026, it consists of a new 66km highway connecting Santiago's northeast access with Route 78 and the future South Orbital Highway, awarded in 2024.

The new route aims to reduce freight truck traffic within Santiago's urban core.

The contract includes 13 bridges, 15 bypasses, three tunnels and 33.5km of bicycle lanes.

Santiago 1 penitentiary complex (US$175mn): Also set for a 2026 tender, the contract entails expanding Santiago 1 penitentiary from 64,000m² to 92,000m².

Works include adding three high-security blocks, one maximum-security unit, new administrative and health offices, and rehabilitating existing infrastructure.

The upgrade will increase the prison's capacity to 4,600 inmates.

Second concession for penitentiary infrastructure, Group 1.1 Alto Hospicio–La Serena (US$297mn): The auction is expected in September. The contract entails expanding the capacities of the penitentiaries in Alto Hospicio (Tarapacá region) and La Serena (Coquimbo region) by 843 and 816 inmates, respectively.

Second concession, Route 68 (US$1.68bn): Awarded to Sacyr in 2025, it had yet to begin physical works as of last February, according to a report from the concessionaire.

The contract entails upgrading and operating the 109km highway linking Santiago with Valparaíso and Viña del Mar, as well as the 20.9km CH-62 and 10.7km CH-60 secondary routes.

Other priorities

Arrau also listed other objectives for the 2026-30 period during an appearance before the Senate's public works committee.

These goals include:

• Awarding 67 rural road conservation contracts covering 22,780km
• Speeding up execution of 19 hospital projects worth US$2.3bn

On the regulatory front, Arrau said priorities include finishing the application framework for the recently approved desalination law, expanding the scope of the concessions system to new types of infrastructure, and implementing a new inter-ministerial infrastructure committee.

(The original version of this content was written in English)