Chile senate set to vote on US$9bn infra fund in November

The Chilean senate is likely to vote in November on a proposed US$9bn infrastructure fund bill, local daily El Pulso reported.

The senate's public works committee is advancing at a good pace with the initiative and voting should be possible next month, said senator Alfonso de Urresti, who is the head of the committee.

President Michelle Bachelet sent the bill to congress in May.

Covering roads, highways, ports, airports, border crossing passes and other public works, the fund aims to build, expand, repair, conserve, explore, develop, finance, and invest in infrastructure projects.

Chile's finance ministry will hold 99% of the fund's share capital, while the country's business development agency Corfo will have a 1% stake.

Administration over the infrastructure fund will fall to a five-member board of directors, appointed by the executive, two of which will be proposed appointees from the public works ministry. Members will be assigned to the board for four-year terms.

Based on BNamericas Intelligent Series report "Chile's Concessions Model Losing its Shine", the proposed fund involves taking the net present value of all those works awarded by the state under concessions and using that to guarantee financing for new projects, avoiding the need for fiscal funds.