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

  • Nairobi road to nowhere?
    January 3, 2013
    International environmental pressure groups claim a vital road in Kenya goes through parkland as Shem Oirere reports. Kenya’s Nairobi Southern Bypass, a 28.6km stretch has become the second road project in East Africa to run into problems. Designed to the Class A International Trunk Road Standard, the route has been targeted by international environmental pressure groups following Tanzania’s Serengeti Highway, which was derailed last year. The US$208 million bypass will link Mombasa Road, near Ole Sereni Ho
    Read More
  • Samoter-Asphaltica 2014 sparks greater Italian optimism
    July 3, 2014
    The recent co-located Samoter and Asphaltica exhibitions at VeronaFiere in Verona, Italy, have been hailed a success by organisers, exhibiting companies and trade delegations, after more than 40,000 visitors, including thousands from outside Italy, attended the combined 445 exhibitor company-strong four-day events. There is no doubt, as Guy Woodford reports, they provided a timely boost to an Italian construction equipment manufacturing sector enduring tough times
    Read More
  • Boom in Asian infrastructure investment
    April 5, 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
  • Switzerland set for its first public hydrogen filling station
    April 9, 2015
    Swiss supermarket chain Coop and Swiss-based energy company Axpo plan to open Switzerland’s first public hydrogen filling station in 2016, according to a report by the newspaper Basler Zeitung. The two companies said more stations will be rolled out. Axpo will supply the hydrogen by splitting oxygen and hydrogen from water at its water power plant using a water electrolyser, an operation that is powered by the plant’s hydroelectric power station which makes the process carbon neutral. According to Axp
    Read More

Highlighted Content