Chile's new metro PPP model paves way for private investment

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Thursday, November 6, 2014

Chile's decision to build a new metro line under a concession model paves the way for the construction of more subway lines under PPPs, Estrategia newspaper reported.

In a surprising move after months of praising a bigger state role in infrastructure projects, the government announced it will build a new metro line in Santiago under a concession model.

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"We think this model could mean many more metro lines for Santiago without concentrating public investment in Santiago," Juan Eduardo Saldivia, head of concessionaire group Copsa, was quoted by Estrategia as saying.

"It guarantees speed and frees up resources to have more metro lines at a faster pace than during the last 20 years."

Saldivia also said Copsa has proposed to concession rail services to connect Santiago and its suburbs of Lampa and Melipilla, as well as to southern Temuco and Puerto Montt cities.

On Wednesday, President Michelle Bachelet announced a nearly US$4.2bn transport infrastructure plan, including feasibility studies for a new Santiago metro line (No. 7) under a PPP model.

The plan to speed up infrastructure investments also includes cable car systems and railroad services, and entails US$1.9bn in new concessions.