In order to ensure the coherence of investment decisions, the board of directors shall submit for approval at the shareholders meeting, a “Five-year Business Plan”, which shall contain details of the investment projects that will be executed by the company and shall establish the mechanism through which the investment projects will be offered for concession. It should be noted that the message of the project gives special importance to its article 21, which refers to the evaluation process of infrastructure projects which require special authorization, referring to those projects which may require State contributions due to those projects presenting more social than economic benefits. In this sense, article 21 of the Project indicates a series of requirements that this type of project must fulfill in order to be approved.
The Project indicates that the company will only be able to develop its objective through third parties, being able to do this by means of granting concessions or by the execution of agreements, which shall be defined according to a public bidding process which guarantees the competence and equality of all bidders.
Finally, in connection with the capitalization or initial financing of the company, the Chilean Minister of Public Works, Alberto Undurraga, stated in the Commission that the company’s capital would total approximately US$9 billion and would not require large State expenditure, since the company would be financed by issuing bonds, which will be paid through cash flow generated by road concessions. Although these roads are currently owned by private companies, many of them are nearing the end of the concession period and will soon revert to State ownership.
The Project is currently being discussed in the Public Works Commission (First Constitutional Step), so it is still subject to possible amendments.
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