Chile Stopped Two Highway Awards Just Before Signing, and Spain’s Builders Are Getting Nervous

Chile has halted two highway award processes just before they were signed, causing concern among Spain's construction industry. The Biobío region's Route 160 corridor and Route 150 – Concepción-Talcahuano motorway corridor, worth about US$400 million combined, were frozen on budget grounds. The decision was made by the Finance Ministry due to fiscal constraints and did not involve the signing of any contracts.

This has left the state to fund the projects directly, with an estimated loss of 4,000 direct jobs and 15,000 indirect jobs in the region.

Spanish and Chilean media reported that the Public Works Ministry had suspended the provisional adjudication of the two corridors. However, Biobío Governor Sergio Giacaman stated that the works would continue under the National Roads Directorate, employing around 4,000 people directly. The delay has been attributed to the tight budget, and the two tenders are not standalone cases. Other tenders, such as the Route 5 Collipulli–Temuco concession and the Valdivia road to Valdivia, have also been postponed.

The Spanish press estimated that US$8 billion of investment and 95,000 jobs are at risk due to these delays. However, this figure comes from a Spanish think tank's analysis, which extrapolates official Chilean data and applies a specific methodology. The Chilean concession model has been a regional showcase for three decades, attracting European builders who price their bids accordingly.

Chile's reputation is under scrutiny as European firms, such as Sacyr, ACS, OHLA, and Acciona, prepare to compete for future projects. If bidders start considering the possibility of award stalls before signature, it could impact the competitiveness of Chilean projects and result in higher costs for the country.