Chile cancels road concession contract

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Chile cancels road concession contract

Chile's Ministry of Public works (MOP) has cancelled the concession contract of the "Concesión Vial Rutas del Loa".

The MOP has announced that due to serious breaches of the contractual terms by the preferred bidder, most related to delays, it has determined to terminate the concession contract and launch a new tender process to award the PPP road project.

In April 2013 the MOP awarded the Grupo San Jose and Alto Andino consortium with the construction, repair, conservation and operation of the project, at a total investment cost of €250 million (US$277 million).

The 35-year concession is located in the Antofagasta Region, the second region in Chile and the most dynamic area in the country.

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'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.

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