CRCC Starts Operation of First Franchise Highway Project in Chile

The Talca-Chillán section of Route 5 highway was handed over to Chilean Highway 5 Talca-Chillán Franchise Co., Ltd., a wholly-owned enterprise of China Railway Construction Corporation Limited (CRCC), on April 1 local time.

It is the largest infrastructure project in Chile and the first highway franchise project contracted by a Chinese enterprise in the country, and also the beginning of Chinese enterprises' involvement in the Chilean infrastructure franchise industry.

The second busiest section of the Pan-American Highway in Chile, the 195-kilometer highway is contracted in an "investment-construction-operation integration" mode.

With a winning bid of more than $1.2 billion, a consortium of two CRCC subsidiaries was responsible for the project, which includes operation and maintenance of the existing road section, construction of a 30-kilometer section, design and construction of a 56-kilometer ring road, and installation of an electronic toll collection system of 13 toll stations.

It is CRCC's first overseas PPP highway project.

Chilean Minister of Public Works Alfredo Moreno said at an interview with local media that the project is expected to provide more than 4,000 jobs for local people annually during construction.

He added that the project will greatly help relieve current traffic pressure and promote regional economic growth in affected areas.

Juan Alvardo, governor of the Maule Region, said that the region would support CRCC in the project and hopes that the two sides could join hands to contribute to local economic development and employment in the post-pandemic era.

The Chinese contractor said that it will take advantage of CRCC's full life circle management in overseas projects and its integrated whole industrial chain resources to accumulate experience for similar projects as it continues to stride towards higher-quality development.

(Executive editor: Wang Ruoting)