Cost increases for major Chilean highway project

The cost of Chile’s Vespucio Oriente highway project is increasing, while its completion also looks set to be delayed. A 13% budget increase is now required due to additional costs from a number of factors such as urban landscaping, according to Business News Americas. The Américo Vespucio Oriente (AVO) expressway is being built in Chilean capital Santiago and was originally expected to cost in the region of US$940 million. However Chile’s Public Works Ministry, MOP, has said that the route will now cost so
November 15, 2013 Read time: 3 mins
The cost of Chile’s Vespucio Oriente highway project is increasing, while its completion also looks set to be delayed. A 13% budget increase is now required due to additional costs from a number of factors such as urban landscaping, according to Business News Americas. The Américo Vespucio Oriente (AVO) expressway is being built in Chilean capital Santiago and was originally expected to cost in the region of US$940 million. However Chile’s Public Works Ministry, MOP, has said that the route will now cost some $1.06 billion. The project is for a 40-year concession package that includes building and operating a 9.3km underground expressway through Santiago. The route runs from El Salto Avenue to Príncipe de Gales Avenue, under the existing Américo Vespucio beltway. Because of the route, the project will be both complex and challenging and MOP also said that firms or joint ventures interested in participating in the tender will now have until December 30th 2013 to submit technical bids, compared to the previous deadline of November 22nd 2013. The ministry will then announce the economic proposals for the concession on January 20th 2014.

The new AVO route will be built on two levels, each one carrying a one-way, three-lane expressway. Road capacity will increase to 8,000 vehicles/hour. The project is required as Santiago suffers chronic congestion, particularly at peak periods. The authorities split the long-delayed AVO tender in two, given the complexity of the project, which will run through five municipalities in eastern Santiago. The new AVO route will provide the missing link in the city's beltway and was originally intended to run underground for 13km, joining El Salto with Grecia Avenue. However, this plan attracted strong protests from residents of the La Reina and Peñalolén districts. The 968 Chilean Government opted to split the project and call a tender only for the first 9.3km stretch. However in March 2014 Chile will have a new election and responsibility for the project will then be passed to whichever party wins. Opposition candidate for the presidency, Michelle Bachelet, has previously said she opposed the splitting of the tender and this could further add to the wrangling over the project, as well as adding additional delays.
Road Structures

For more information on companies in this article

Related Content

  • European Construction Material Recycling Award 2018
    October 20, 2017
    The European Quality Association for Recycling (EQAR) has announced its innovation award for construction material recycling in Europe. With the launch of the 2018 award, this will the third time the EQAR innovation award scheme has been run. Producing over 2 billion tonnes of waste the construction sector has the biggest output of waste materials of any industry in Europe, according to Manfred Wierichs, president of EQAR.
    Read More
  • New Chile-Argentina tunnel project to open for bids
    April 19, 2016
    The bidding process for the Agua Negra Tunnel project that will link Chile with Argentina looks set to commence in July or August 2016. The bidding is being organised jointly by the governments of both Chile and Argentina. One source of funding for the project is also now secured, with a loan of US$1.5 billion being provided by the Inter-American Development Bank (IADB). In addition the IADB has also approved $20 million in funding for Chile and Argentina to finance the project's environmental impact studie
    Read More
  • Brazilian project attracts strong interest
    April 30, 2012
    Interest is strong in Brazil’s BR-101 highway project. The tender for the project will open on 18th January 2012. According to Brazil's Land Transport Agency (ANTT), at least six groups, most Brazilian, have shown interest in the project. The stretch to be put out to tender totals 476km, of which 458km is in Espirito Santo. The ANTT states that US$1.24 billion will be invested in the BR-101, with plans to widen the highway in stages. The concession period for the road totals 25 years and the highway will fe
    Read More
  • Boom in Asian infrastructure investment
    February 8, 2012
    Investment in China and India continues unabated, but other nations on the continent are eager to attract companies as Patrick Smith reports Asia is still booming despite the current economic crisis, and new infrastructure programmes are constantly coming on stream. Powerhouses China and India, with their double-digit growth figures and huge infrastructure plans (in scope and cost), are leading the way and are still magnets for businesses wishing to expand, both in terms of facilities and customers. But oth
    Read More

Highlighted Content