CIC - Construction Intelligence Center

Infrastructure investment in Chile is on the rise, supported by the government’s growth agenda

30 Nov 2016

According to Timetric’s Infrastructure Intelligence Center (IIC), infrastructure construction output in Chile will reach US$17.7 billion in 2020, up from US$13.4 billion in 2015.


There are a number of large-scale projects in the infrastructure construction pipeline in Chile, and the rapid growth in output over the next five years is based on the assumption that these will progress as planned, namely the Costañera Central Highway, Santiago Metro Line 7, Maria Elena Thermo Solar Park, Acueducto de Aquatacama, Punilla Water Reservoir, the Arturo Merino Benitez International Airport Expansion, and the Puerto de Gran Escala (PGE) San Antonio Development.


The government of President Bachelet plans to boost the country’s infrastructure through a number of programs and projects such as the “Infrastructure, Development and Inclusion Agenda – Chile 30-30,” which includes an investment of US$28 billion in public and private infrastructure projects for the period 2014–2021. The agenda, which aims to increase spending in public infrastructure from the current’s 2.5% to 3.5% of GDP, entails two main areas of investment, including an estimated US$9.9 billion in new concession projects until 2020 and US$18 billion in a wide range of public infrastructure projects and programs until 2021. The government has also unveiled plans to create a state-owned infrastructure fund in order to complement efforts to spur infrastructure investment and revive the sluggish economy.


The IIC is currently tracking 350 large-scale infrastructure construction projects in Chile, at all stages of development from announcement to execution. “These projects have a total investment value of US$140 billion,” according to Timetric’s infrastructure economist, Dariana Tani.  The electricity and power sector accounts for the largest share of the project pipeline, with a total project value of US$91.4 billion. This is followed by water and sewerage infrastructure projects, with a pipeline of US$21.3 billion. The pipeline for airports and other infrastructure projects amounts to US$11.4 billion, and for roads it stands at US$9.7 billion. For railway infrastructure construction projects, the total work pipeline stands at US$6.9 billion.


Chile's Infrastructure Construction Pipeline by Sector (US$ million)


About this report


This information is taken from the Timetric report: ‘Infrastructure Insight: Chile’


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Source: Company Press Release