Three decades of continuity and high standards have made Chile’s concessions system a cornerstone of public infrastructure and investment in the country.
Chile has one of the most well established public-private partnership (PPP) frameworks in Latin America.
In this expert blog, we explore how, over the past 30 years, the concessions model has enabled the country to develop strategic infrastructure to a high standard, improving quality of life and strengthening Chile’s competitiveness.
This progress has been anything but accidental. In that time, the concessions system has remained a state policy, maintained and refined by successive administrations across the political spectrum, and widely valued by the public sector, private investors, and international organizations.
The awarding of the El Melón tunnel in 1993 marked the beginning of a consistent trajectory.
Since then, governments formed by different political coalitions have developed new projects, updated regulations, and strengthened the system’s institutional framework.
This continuity has been critical for providing certainty to investors, reducing risk, accelerating project implementation, and ensuring the delivery of essential infrastructure throughout the country.
A policy that transcends political cycles
In the early 1990s, Chile faced a significant infrastructure deficit.
The Ministry of Public Works operated with an annual budget of around US$200 million, roughly 80% of which had to be allocated to maintaining the country’s section of the Pan-American Highway (Route 5), leaving limited resources for new development.
Against this backdrop, the public-private partnership model emerged as a strategic solution.
What stands out is how broadly this vision was embraced. Over time, concessions became a priority tool for multiple governments, enabling long-term investment without depending on annual budgets or changes in political leadership.
The system also made it possible for public funds to be directed toward projects with a high social impact but limited private-sector appeal, such as the thousands of miles of small roads that connect rural areas.
This continuity is one of the model’s biggest strengths, ensuring clear rules, robust contracts, and a reliable institutional framework. Together, these elements have positioned Chile as a regional infrastructure leader.
At its core, this stability reflects a national consensus regarding the strategic role of infrastructure in Chile’s development.
Results of Chile’s concessions system
Over 32 years, the concessions system has mobilized more than US$32.6 billion through 110 contracts, covering:
- 2,500 miles of highway.
- An airport capacity of 68 million passengers per year.
- 6,200 hospital beds managed under concession.
- 21,300 penitentiary places.
- Reservoirs and, most recently, the awarding of the first multi-purpose desalination plant in the Coquimbo Region.
This portfolio illustrates the progressive development of a state policy in which each administration has contributed new projects, regulatory updates, and improvements in governance.
The concessions system is also marked by the participation of 37 international companies from 16 countries, the adoption of cutting-edge technologies, and ongoing modernization of construction and operational standards.
These advances have been made possible thanks to Chile’s institutional stability, the continuity of public policy, strong private-sector engagement, and the technical expertise accumulated over three decades.
A driver of productivity and regional development
The system’s impact goes beyond the commissioning of individual projects. It has enabled Chile to accelerate investments, shorten travel times, improve logistics, and enhance the competitiveness of its regions.
The expansion of Route 5, the development of regional airports, and the construction of concessioned hospitals offer tangible examples of the cumulative impact of this public policy.
A forward-looking agenda
Chile now faces new infrastructure challenges: climate change adaptation, railway expansion, urban growth, increasing demand for public services, the construction of new desalination plants, public safety projects, and improved regional connectivity.
Thanks to its maturity, accumulated experience, and robust institutional framework, the concessions model is well positioned to continue expanding and meeting these needs.
The Infrastructure Policy Council estimates that investment over the next 30 years could quadruple what has been implemented to date.
Achieving this will require continued public-private coordination, competitive tender processes, and ongoing improvements to regulations and oversight mechanisms.
The evidence shows that Chile has implemented a robust, stable, and internationally renowned state policy that delivers high-impact public works and is shielded from electoral cycles.
This stability is one of the attributes most valued by international investors and a key pillar for the country’s future.
A partnership that will continue to drive development
More than three decades after its launch, the concessions system remains an effective, mature, and widely validated tool.
Its success rests on a fundamental principle: infrastructure is a long-term commitment led by the State and developed in partnership with the private sector, which assumes responsibility for the construction, operation, and maintenance of works under stringent standards.
This sustained cooperation, beyond political cycles, has enabled Chile to consolidate a stable, efficient model focused on serving people.
The continuity of this model will enable the country to keep developing strategic projects, attracting foreign investment, and improving quality of life for people in all of its regions. Chile has developed a robust institutional framework and a forward-looking vision that firmly establishes concessions as a permanent driver of its development.
Find out more about Chile’s concessions system in our How to Invest in Chile guide.
