Private initiatives under Chile's public works concessions law
- Law
- DS MOP No. 900 of 1996, consolidated text of the Public Works Concessions Law 1
- Regulation
- DS MOP No. 956 of 1997, amended by DS MOP No. 206 of 2021, published 8 February 2022 2
- Handling body
- Dirección General de Concesiones (DGC) 2
- Premium for the proponent
- 3% (Category C), 6% (Category B), 8% (Category A) 2
- Guarantee
- UF 1,000 (A), UF 3,000 (B), UF 5,000 (C) 2
- Deadline for public interest decision
- Not later than one year from filing 2
The legal basis
Article 2 of DS MOP No. 900 of 1996, the consolidated text of the Public Works Concessions Law, lets any person or company propose to the Ministry the building of public works under the concession system 1. The proposer that originated a tender is entitled to a premium in the evaluation of its offer, set out in the regulation and the tender rules 1.
The Ministry of Public Works amended the regulation, DS MOP No. 956 of 1997, by DS MOP No. 206 dated 7 October 2021. It was published in the Diario Oficial on 8 February 2022 2.
Project categories, guarantees and premiums
The regulation sorts private initiatives into three categories by estimated investment 2. Within 30 days of the public interest declaration the proponent must deliver a guarantee and terms of reference 2.
Deadlines in the presentation stage
- The DGC checks admissibility within 10 days of filing. A deficient filing may be fixed within 5 days 2.
- The DGC reviews sufficiency and coherence within 30 days and may reject the idea early 2.
- Other public bodies get 60 days to respond. Silence counts as no interest 2.
- The DGC rejects the idea or reports to the Minister within 15 days. The Minister has 45 days to request a report from the Consejo de Concesiones, which reports within 60 days 2.
- Public interest is declared within 150 days of the Consejo's report and never later than one year from filing 2.
- The DGC decides on the full proposal within 90 days of its filing 2.
How the Consejo de Concesiones assesses ideas
The Consejo de Concesiones gives a favourable or unfavourable opinion on public interest. If it issues no report, the opinion counts as unfavourable 2.
Its criteria include preliminary social profitability, fit with urban plans, contribution to the territory, the need for subsidies or payments to the State, and originality or innovation 2.
Tender, premium and reimbursement
In the tender the proponent's economic offer score rises by the premium percentage, weighted as set in the tender rules. The proponent may cede the premium to a bidding group 2.
If the concession goes to another bidder, the concessionaire repays the proponent's verified study costs up to a cap set by the DGC 2. If the project is approved but not tendered as a concession, the Ministry repays within 18 months. If no award results after one or two tenders, the Ministry may repay within one year 2. A rejected proponent has no right to repayment for the minimum studies 2.
The World Bank PPP Reference Guide says that of 19 concessions awarded from unsolicited proposals in Chile as of 2015, only seven went to the original proponent 3. The 2017 World Bank guidelines say Chile lets the proponent develop specific studies with the agency overseeing the process, and reimburses development costs 4.
A 2007 PPIAF paper said 12 of 48 Chilean concession contracts had started as unsolicited proposals. It said the bonus for the first two airport concessions was 20 percent 5.
Common questions
Who can propose a concession project in Chile?
Any person or company may propose one to the Ministry of Public Works 1.
How big is the proponent's premium?
3% for Category C, 6% for Category B and 8% for Category A projects, added to the economic offer score 2.
Does the proponent get its study costs back?
Yes, up to a DGC cap, paid by the concessionaire or the Ministry depending on the outcome. A rejected proponent gets nothing for the minimum studies 2.
How often does the original proponent win?
Of 19 concessions awarded from unsolicited proposals as of 2015, seven went to the original proponent, according to the World Bank 3.
Rules and fees change. Check the official site linked above before you apply or pay. Spotted an error? Email [email protected] with the official link.
Sources
- Ministerio de Obras Públicas: DS MOP No. 900 of 1996, Ley de Concesiones de Obras Públicas, consolidated text (published 18 December 1996)
- Diario Oficial de la República de Chile No. 43.173: DS MOP No. 206 of 2021 amending DS MOP No. 956 of 1997, Reglamento de la Ley de Concesiones (8 February 2022)
- World Bank PPP Reference Guide: Dealing with Unsolicited Proposals (undated, accessed 20 October 2026)
- World Bank Group: Policy Guidelines for Managing Unsolicited Proposals in Infrastructure Projects, Volume I (July 2017)
- PPIAF: John T. Hodges and Georgina Dellacha, Unsolicited Infrastructure Proposals, How Some Countries Introduce Competition and Transparency, Working Paper No. 1 (2007)
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