Examples of a public-private effort

Up to 2008, the Ministry of National Assets had fostered 229 projects associated with sales or the awarding of concessions over public lands.

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Every year the Ministry of National Assets defines the new projects that it will make available to prívate investors. Up to  2008, 229 processes had been undertaken successfully.

The public lands that have been sold or provided in concession have been especially useful for industrial, real estate development, tourism or scientific initiatives. Of the entire range of projects, there are several that stand out from the rest for their special characteristics and their scope.

Puerto Seco: a new industrial neighborhood for Calama

A new industrial neighborhood was created in Calama, a city in the Antofagasta Region in the arid desert of northern Chile, which has allowed a major mining cluster to be installed and become consolidated.

This municipality contains one of the copper mining industry’s main poles of development, as it is home to the main copper mines in the country: Chuquicamata, El Abra, and Radomiro Tomic.

Puerto Seco is located on 136 hectares of land and to date over 30 mining supply companies have set up there. The Seventh Stage of the Public Offer Program, scheduled to be tendered in the first half of 2009, is aimed at selling off public lands in the same sector on the condition that the projects offered are executed.

For their part, the six public tender processes held through December 2008 have allowed the installation of companies with estimated investments of US$23 million.

Jéchica Island: To begin navigating the ends of the earth

A tourism and conservation project was created in the southern end of the world, on the remote archipelago of the Guaitecas – declared a Unesco Biosphere Reserve – in the Aysen Region.

Located on Jéchica Island, it consists in a nature tourism park with special aquatic interests and an abundance of exuberant forests and myriad canals.

The state has provided 6,581 hectares in concession for 50 years and another 65 hectares were transferred to the Jéchica Development Partnership for a project that includes a marina, cabins, a clubhouse, a bar and a library. All of this is connected to paths that penetrate virgin forests while respecting ecosystems and the rich biodiversity of the reserve.

The initial investment on Jéchica Island totals US$1 million and it is fully operational. For more information, see www.islajechica.cl.

La Negra: New industrial conglomerate in Antofagasta

The city of Antofagasta is Chile’s mining capital. Between 1999 and 2000 the Ministry of National Assets, in a strategic alliance with the Municipality of Antofagasta, the Housing and Urbanism Ministry and businesspeople organized  in La Negra Progress Board, began a project to develop and consolidate a high-standard industrial neighborhood.

On a 2,400 hectare property – the majority state-owned – located in the La Negra sector 20 kilometers east of the city of Antofagasta and adjacent to the Pan-American Highway, a project was promoted to concentrate large, medium, and small-sized companies to consolidate a powerful mining industry related conglomerate.

The ministry undertook the territorial planning, creating a zoning plan for the area and beginning to offer plots through recurring public tender processes. The idea is for there to be a constant supply of lands to cover the installation needs of companies in the sector. As of 2008 six tender processes had been held, with sales conditioned on the execution of the projects offered. This has allowed the arrival of over 70 companies with estimated investments of US$77 million.

La Chimba neighborhood in Antofagasta: Planned and sustainable urban expansion

In addition to land for industrial use, Antofagasta also had a lack of plots for urbanization. For this reason, the Chilean Government worked on the incorporation of an area of 417.17 hectares into the city, the majority of which (205 hectares) was state property located in the northern part of the city.

The area has a natural bay and flat plots without geographical accidents that were incorporated into the city limits in the Sectional Plan approved in 2000, which provided a planned solution for Antofagasta’s urban expansion. The regional authorities executed the basic urbanization work and acquired part of the land to implement housing programs.

Since then the Ministry of National Assets has held two tender processes for the sale of lots, in which major real estate development projects have been undertaken. The third call for tender will be held in the first half of 2009 and will consider a broad range of properties for the execution of housing and infrastructure projects.

The estimated investment associated with the real estate projects executed and those currently under way totals US$ 10 million. With this action the Ministry of National Assets incorporated urban lands in a planned manner for the development and expansion of Antofagasta, incentivized private capital inflow, and substantially improved the quality of life for the city’s inhabitants.

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