Single bid for US$270 million unsolicited road PPP in Chile

Single bid for US$270 million unsolicited road PPP in Chile

This article is part of a daily series of MegaProjects articles. If you want to know more about PPP projects with a considerable size visit our MegaProjects section. You can receive them by email on a daily basis.

The Ministry of Public Works of Chile has announced the reception of offers for the Ruta Vial Ruta 78 to Ruta 68 project, which concerns the development of a 9km express road corridor between the districts of Pudahuel and Maipú. It is intended to improve the connectivity of the western sector of the Santiago Metropolitan Region and increase accessibility to the main routes to Valparaíso and San Antonio.

Only one bid was received, from Grupo Costanera. Prior to the public call for bids in September 2017, the group submitted an unsolicited proposal for the project. This included pre-bid studies.

The project involves the construction of a double-lane road corridor with two lanes in each direction, which can be extended to third lanes in the future. The road will have a speed limit of 100 km/h. This will reduce the travel time between the communes of Maipú and Santiago Centro by 30%, meaning the journey will take 12 minutes.

The contract will also cover lighting, road safety and landscaping works. Service streets will be built on the eastern side of the route, to maintain connectivity between the properties of the sector and grant continuity to the planned routes of the Metropolitan Regulatory Plan of Santiago.

The concession period of the project is 45 years with an investment of CLF6.1 million (US$270 million). Construction is planned for 2021, within a period that would last about 23 months. The opening of economic offers will take place on 1 February 2018.

Grupo Costanera previously developed the Costanera Norte under a concession agreement. This is a 43km expressway which connects northern Santiago from east to west, along the northern bank of the Mapocho River, with an electronic toll collection system. This project can be seen as an extension of the Costanera Norte.

Grupo Costanera is owned by Atlantia SpA and CPP (Canadian Pension Plan) Investment Board.

Share this news