Chile suspends two highway construction contracts in Biobío
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The Chilean Finance Ministry suspended the award of two public transport corridor projects in Gran Concepción, collectively valued at approximately US$400 million, after failing to sign the final award decrees for the projects provisionally adjudicated to the Spanish builder Azvi. Finance Minister Jorge Quiroz cited fiscal tightness as the reason for the postponement, shifting the delivery model from private concessions to direct execution by the Public Works Ministry. While regional officials confirmed the projects would proceed under state management, this change impacted projected completion timelines, extending them from late 2031 to approximately late 2035.
Consequences
The decision to halt these projects has delayed additional infrastructure tenders, including the Route 5 Collipulli–Temuco project and the Valdivia accesses. Furthermore, this move challenged Chile’s long-standing reputation for predictability in its infrastructure program, potentially influencing the future participation and pricing strategies of foreign construction firms.
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