Seven companies and groups have submitted offers in the tender process for El Melon tunnel expansion project in Chile's central Valparaiso region.

The project involves an investment of US$128 million and includes the construction of a second tunnel adjacent to the existing El Melon located between the provinces of Petorca and Quillota.

The concession includes the construction, maintenance and operation of the tunnel works that will allow an increase in capacity on the route and improve the safety standard of the current road.

The bids were received by OHL Concesiones Chile SA, Sacyr Concesiones Chile SA, Conpax Energia y Concesiones SA, Concesiones Viarias Chile Tres SA (ACS Group), FCC Construccion SA, Consorcio Echeverria Izquierdo-Arauco and Highway Investment Chile SA.

The next step in the process is scheduled for March 7, when the bids will be opened and a determination made about the company or consortium which will build and operate the tunnel.

The Public Works Ministry said that the project would help increase growth and create jobs and that the bids received are a signal of the companies' confidence in Chile and its economy.

El Melon tunnel is five kilometers (3.1 miles) long and and began operating on Sept. 13, 1995. The project was the first public works project granted in Chile as a private concession.