Chile Water Infrastructure Model

Chile has become a model for investments and infrastructure development in the water sector. Private investors have a central role, between 1998 and 2004, the Chilean government sold strategic stakes in thirteen state-owned water sector companies. Keeping only 30% to 45% of minority stake.

It was a conscientious decision because of the issues of sewage discharge in the seas and rivers in the yearly 1990. In 1998, only 24 wastewater treatment were in service that only processed 83% wastewater collection but only 15% of its treatment.

With a $4 billion investment program from the government and private sectors, between 2004 and 2010 Chile reached its goal of treating 100% of wastewater.

According to a report prepared by the Global Infrastructure Investor Association (GIIA) in collaboration with PriceWaterhouseCoopers (PWC), Chile is now the world leader in urban wastewater treatment, while keeping prices among the lowest in the world. This information has been confirmed by a decreasing number of hospital admissions due to typhus or endemic infections generally widespread in some developing countries, caused by direct contact with infected people and by the intake of contaminated food and water.

Private investors from all around the world have helped Chile to move forward. They offered a streamlined and efficient regulatory system, with climate change Chile has been focusing on how to ensure the security of water supply.

 Chile has launched its National Plan for Large Reservoirs; the government has pledged to build 8 of them before the end of its mandate. 3 have already started construction in Chironta but also Valle Hermoso and La Punilla. 5 others are in study or awarded phase: Las Palmas, Catemu and Los Angeles in the Valparaiso Region, La Taranca and Murallas Viejas in the Coquimbo Region.

Chile government have opened the doors for investors to be part of the solution. Providing a superior quality wastewater infrastructure to meet the demand of the population. But also, it also have helped to overcome the hurdle of keeping their infrastructures and developing a model that other countries could be using.