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Chile's President Michelle Bachelet has announced a US$1.5 billion new infrastructure concessions plan until March 2016 and the development of a new framework to strengthen the concessions process and increase private investment.

The plan involves three highway PPP projects:

• Route 5 highway expansion project. The works include the expansion of the road to four lanes from two between the northern cities of Antofagasta and Iquique.

• Santiago - Marga, Marga-Quillota highway. The project involves the development of a new highway between capital Santiago and the city of Quillota.

• Rancagua - Alhué highway. The project involves the development of a new highway between Rancagua and Alhué. The new road will connect the Rancagua by-pass with the "Ruta de la Fruta" route.

According to Michelle Bachelet, the government has plans to reform concessions rules. The government aims to carry out initiatives to stimulate participation of Chile's small and medium-sized enterprises (SMEs). The government will also create a a general concessions department, which will report to Chile's Ministry of Public Works (MOP).

MOP has recently awarded the concession contract to expand and operate Santiago's international airport to the Grupo Nuevo Pudahuel consortium. The team comprises Vinci Aeroports S.A.S., Aeroports de Paris S.A. and Astaldi. The total project investment is estimated at UF14.8 million (US$579.4 million).

We also recently reported that the MOP has awarded to Concesiones Viarias Chile 3 (ACS) "Los Libertadores" border checkpoint concession project and has pre-qualified a total of five teams for the Punilla reservoir concession project in the Bío-Bío Region.