The Ministry of Public Works (MOP) in Chile has awarded local consortium Belfi-Conpax-Aura with the concession of El Melon tunnel expansion project in Chile's central Valparaiso region.

In early March we reported that this consortium presented an offer for about US$110 million, which was below other economic proposals. The offer was also a 25% lower than the maximum stated in the bidding documents.

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, involving the construction of a second tunnel adjacent to the existing El Melon located between the provinces of Petorca and Quillota. 

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.

On February 19, we reported that MOP received bids from 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.