At the headquarters of the Chilean Chamber of Construction (CCHC) Ñuble, the Regional Ministerial Secretary (Seremi) of Public Works of Ñuble, Paulo De la Fuente, together with the directors of the different directorates dependent on the MOP, presented the board and associates of the CCHC chaired in the region by Ricardo Salman, the Plan for the Growth and Liquidity of Public Works Companies that aims to respond to the need for economic reactivation; advance resources for the execution of works and streamline the management of contracts to provide continuity to the execution of infrastructure.
“Our Minister Jessica López announced this plan, which, among the measures adopted, is the instruction of the General Directorate of Public Works to provide an advance of 20% of the value of the works to the companies that request it, which will allow them It will allow companies to carry out their work or work with resources from the contract itself. Along with this, there are a series of measures that were approved by the Comptroller General of the Republic, such as the possibility of replacing the advance payment guarantee, as the works progress in order to provide liquidity to companies. The package is already operational, and today we have presented it to the Chilean Chamber of Construction, strategic partners for the development and growth of our region,” highlighted Seremi De la Fuente.
The MOP authority highlighted that “the reactivation measures that were presented are in line with supporting companies to ensure the employment of the almost 50,000 contractor workers, who in Ñuble today reach 1,500 jobs, and providing continuity to the works. of infrastructure, protecting the territories and their inhabitants. As a Ministry we have almost 1,800 works in progress in the country and our objective with these measures and regulatory changes is to give continuity to each of them.”
The president of the CCHC in Ñuble, Ricardo Salman, highlighted the good news. “We believe this is an important milestone amid the challenging situation facing the construction sector. This advance in investment is projected as a significant boost that will boost hiring and generate employment, thus promoting a positive effect on the regional economy. “The willingness of our union to collaborate with the State on measures that are aimed at revitalizing the sector, especially focused on public works infrastructure, reflects the commitment to improving the quality of life of all citizens,” he stated.
Seremi De la Fuente added that “the Plan for the Growth and Liquidity of Public Works Companies, in which we have made regulatory changes to the Regulation of MOP contracting companies, will allow us to streamline public works contracts and greater liquidity. for contracting companies. This allows us to respond to the need for economic reactivation; advance resources for the execution of works, streamline the management of contracts and provide continuity to the execution of infrastructure.”
Measures for reactivation
Another measure adopted is the possibility of granting the contractor an advance to finance items contracted as “pro forma values” (work to change services before starting the work), such as changes in electricity, water, telephone, gas services, among others. that companies must hire third parties. This measure will have an impact on around 40% of the Roads Directorate’s contracts.
To respond to the difficulty presented by the Ministry of Public Works when contracts are terminated early, the MOP may intervene in works that are abandoned, carrying out provisional works that are required for safety reasons or that are essential to avoid disruptions to the community or the deterioration of what was built.
On the other hand, the causes for which the immediate execution of contract modifications are possible without waiting for the processing that approves it and measures such as the possibility of forming consortia to add capital or experience and the power to register in the registry of contractors are expanded. to related companies become a permanent standard and no longer only for the years 2023-2024.
In addition, a series of administrative measures were announced that will simplify the documentation and background information required of contractors in tenders and the incorporation of gender perspective elements. This plan is added to other actions adopted in 2022 and 2023 such as the retroactive polynomial readjustment that since 2022 has meant an investment by the MOP of MM$151,256 for 1,738 contracts; joint work with BancoEstado so that contracting companies can access preferential products and rates; the package of Pro SME regulatory measures announced last year, which allowed subcontracting to be expanded by up to 50% and minor works contractors to apply for projects of up to 20,000 UTM.
On the other hand, with the aim of providing companies with stable participation and investment throughout the year and avoiding concentrating the largest number of projects in the second half, in March, the MOP announced 685 tenders, for a total of 2.2 billion of pesos. Of these 685 tenders announced in March, there are already 163 tenders in progress.
Finally, to facilitate the search for projects and give greater transparency to the system, the MOP created a website where all tenders in the portfolio can be viewed online by region, address, amount and publication date.
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