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Chile's Ministry of Public works (MOP) has re-launched the tender process for the concession contract of the "Concesión Vial Rutas del Loa" on PPP scheme.

In April 2013 the MOP awarded the Grupo San Jose and Alto Andino consortium with the construction, repair, conservation and operation of the project, which holds a total investment cost of US$292 million.

Later on, as we reported in July 2015, the MOP determined to terminate the concession contract, due to serious breaches of the contractual terms by the concessionaire, most related to delays.

With a total length of 136.5 km, the concession consists of Route 25 and the new ring road of Calama, allowing traffic connection from the mining area of the country to Route 5, which crosses the Andean country from the north to the south. Route 25 will be a double-lane road and will be continued on the new Eastern link of the important mining city, which involves a 25.5 km long additional single carriageway road.

The project also includes service roads, a link road to Sierra Gorda, several intersections, flyovers, a toll station, an emergency service area, pedestrian ways, as well as drainage, signalling and road safety works. The project is planned to be completed by 2012.

The deadline for interested bidders to submit their proposals is on July 31.

The project's importance lies, on the one hand, with improving the city of Calama's urban infrastructure and providing the city with more expedite and safer access roads for users. On the other hand, it will facilitate the transportation of copper from the mines of this part of the country, such as Chuquicamanta, the largest open pit mine in the world.