Boston, MA -- (SBWIRE) -- 10/11/2013 -- BMI View: Our core view for the Chilean construction industry forecasts the industry value to more than double between 2013 and 2022, reaching US$47.4bn by the end of the forecast period. Chile's construction industry growth is backed by an overall stable and investor-friendly business environment, a supportive government, and a comparatively developed mortgage market which drives residential construction growth. After officially reporting strong growth of 8.1% in 2012, we forecast lower but still robust growth of 6.4% in 2013.

Key developments in the sector:

- Robust investment in mining infrastructure: BHP Billiton and Rio Tinto have announced a US$3bn investment in the construction of a new seawater desalination plant to support operations at Chile's biggest copper mine - Escondida. This investment the commitment of these mining giants to maintaining and expanding their presence in Chile.
- Commitment to the Ports: The Chilean government has announced that it will build a new port in order to serve the country's fifth region, reports Port Strategy. Traffic at Chilean ports is expected to increase by 6% on an annual basis, thereby exhausting their existing capacity by 2025. The government intends to locate the new facility close to the ports of Quintero, San Antonio and Valparaiso. The new deep draught port is scheduled to commence operations by 2025.
- There remains sufficient scope for growth in the renewable energy sector. Enel Green has started the construction of the US$140mn Valle de los Vientos wind project in region II. The 90MW plant, with 45 turbines, is to supply 200 gigawatt hours of power per annum to the northern SING grid from November 2013, according to a press release by the energy ministry. BBVA has provided US$100mn in financial assistance to Enel Green, enabling the company to partially finance its investments in Chile. In April 2013, Chilean company Eolica Tablaruca also secured US$610,000 in financial assistance from the US Trade and Development Agency for a 260MW wind power plant on the Chilean island of Chiloe.
- Investors will be encouraged further by the government's intent to increase renewable energy generation in the country. In March 2013, Corporacion de Fomento de la Produccion de Chile (Corfo) Executive Vice President Hernan Cheyre and Chile's Energy Minister Jorge Bunster invited bids for the construction of a concentrated solar power plant in the country. The tender was launched in February 2013. The plant, first of its kind in Latin America, must have a minimum power generation capacity of 10MW. A subsidy of up to 50% of project cost totalling US$20mn and an optional concession for government land will be provided by Corfo. Chilean authorities have arranged more than US$350mn in financial assistance from international sources.

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