Urban Toll Highway Concession System in Santiago, Chile: Lessons Learned after 15 Years
Publication: Journal of Infrastructure Systems
Volume 26, Issue 2
Abstract
Since the 2000s, the city of Santiago, Chile has experienced severe congestion problems in its urban area. To face them, the government decided to promote the first full network of electronic toll highway concessions ever implemented in a metropolitan area worldwide. The toll system was defined fully free-flow and interoperable across all concessions, requiring a complex enforcement mechanism to make it effective. Although previous research studied specific issues of the highway program, an overall analysis of its performance over time was missing. Using a case study methodology, information was gathered from literature review studies, statistical sources, and interviews with key stakeholders. This paper found that the concession model is a feasible alternative to finance and operate a network of urban toll highways using an interoperable electronic toll collection (ETC) system. However, future experiences should take into account crucial aspects such as the need to promote integration with public transportation means, to avoid separation among neighborhoods, and to adopt regulatory measures to prevent congestion in the future.
Get full access to this article
View all available purchase options and get full access to this article.
Data Availability Statement
All data, models, and code generated or used during the study appear in the published paper.
References
Abdel-Aziz, A. M. 2007. “A survey of the payment mechanisms for transportation DBFO projects in British Columbia.” Constr. Manage. Econ. 25 (5): 529–543. https://doi.org/10.1080/01446190601161465.
Athias, L., and S. Saussier. 2008. Contractual flexibility or rigidity for public private partnerships? Theory and evidence from infrastructure concession contracts. London: Theory and Evidence from Infrastructure Concession Contracts.
Autopista Central. 2015. Annual report 2014. Santiago, Chile: Autopista Central.
Bain, R. 2009. “Error and optimism bias in toll road traffic forecasts.” Transportation 36 (5): 469–482. https://doi.org/10.1007/s11116-009-9199-7.
Bartlett, L., and F. Vavrus. 2016. Rethinking case study research: A comparative approach. New York: Taylor & Francis.
Bitran, E., S. Nieto-Parra, and J. S. Robledo. 2013. Opening the black box of contract renegotiations: An analysis of road concessions in Chile, Colombia and Peru. Paris: Organization for Economic Cooperation and Development Publishing.
Bolton, P., and M. Dewatripont. 2005. Contract theory. Cambridge, MA: Massachusetts Institute of Technology Press.
Brochado, M. R., and J. M. Vassallo. 2014. “Federal toll road concession program in Brazil: Is it moving in the right direction?” J. Infrastruct. Syst. 20 (2): 05014001. https://doi.org/10.1061/(ASCE)IS.1943-555X.0000200.
Camacho, G. 2014. “La regulación de la colaboración público-privada para la provisión de servicios y de infraestructuras.” Revista Derecho Público Iberoamericano 4 (Apr): 141–164.
Carpintero, S., J. M. Vassallo, and A. Sánchez Soliño. 2015. “Dealing with traffic risk in Latin American toll roads.” J. Manage. Eng. 31 (2): 05014016. https://doi.org/10.1061/(ASCE)ME.1943-5479.0000266.
Chung, B., M. J. Skibniewski, and Y. H. Kwak. 2009. “A holistic success model for the construction industry.” J. Constr. Eng. Manage. 135 (3): 207–216. https://doi.org/10.1061/(ASCE)0733-9364(2009)135:3(207).
Clifton, C., and C. F. Duffield. 2006. “Improved PFI/PPP service outcomes through the integration of Alliance principles.” Int. J. Project Manage. 24 (7): 573–586. https://doi.org/10.1016/j.ijproman.2006.07.005.
Commission of the European Communities. 2004. “Green paper on public-private partnerships and community law on public contracts and concessions.” Accessed March 3, 2020. https://op.europa.eu/en/publication-detail/-/publication/94a3f02f-ab6a-47ed-b6b2-7de60830625e/language-en.
Coordinación de Concesiones de Obras Públicas. 2017. Informe Mensual CCOP-31 Julio 2017. Santiago, Chile: Coordinación de Concesiones de Obras Públicas.
Corbacho, A., K. Funke, and G. Schwartz. 2008. Public investment and public-private partnerships: Addressing infrastructure challenges and managing fiscal risks. Washington, DC: International Monetary Fund.
de Brux, J. 2010. “The dark and bright sides of renegotiation: An application to transport concession contracts.” Util. Policy 18 (2): 77–85. https://doi.org/10.1016/j.jup.2009.07.003.
de Grange, L., F. Gonzalez, and R. Troncoso. 2015. “Estimates of price elasticity of demand for urban freeway use with high-frequency control variables: The case of Santiago, Chile.” Appl. Econ. 47 (22): 2326–2337. https://doi.org/10.1080/00036846.2015.1005825.
Dirección de Presupuestos, Ministerio de Hacienda. 2018. Informe de Pasivos Contingentes 2018. Santiago, Chile: Dirección de Presupuestos.
Dirección General de Concesiones, Ministerio de Obras Públicas. 2020. Informe Trimestral de Concesiones: Octubre-Diciembre 2019. Santiago, Chile: Ministerio de Obras Públicas.
Égert, B. 2015. “Public debt, economic growth and nonlinear effects: Myth or reality?” J. Macroeconomics 43 (Mar): 226–238. https://doi.org/10.1016/j.jmacro.2014.11.006.
Engel, E., R. Fischer, and A. Galetovic. 1996. Vol. 61 of Licitación de carreteras en Chile, 5–37. Santiago, Chile: Estudios Públicos.
Engel, E., R. Fischer, and A. Galetovic. 2001. “El Programa Chileno de Concesiones de Infraestructura: Evaluación, Experiencias y Perspectivas.” In La Transformación Económica de Chile, edited by F. Larraín and R. Vergara. Santiago, Chile: Centre for Public Studies.
Engel, E., R. Fischer, A. Galetovic, and M. Hermosilla. 2009. “Renegociación de concesiones en Chile.” Estudios Públicos 113 (113): 151–205.
Engel, E., and A. Galetovic. 2013. Urban transportation: Can public-private partnership work?. Stanford, CA: Stanford Univ. Center for International Development.
Figueroa, E., A. Gómez-Lobo, P. Jorquera, and F. Labrín. 2013. Develando econométricamente los impactos sobre la concentración atmosférica de material particulado de un proyecto de remodelación del transporte urbano: El caso del Transantiago en Chile Estudios de Economía., 53–79. Santiago, Chile: Universidad de Chile.
Gómez, D., and J. Ruiz-Cámara. 2009. Régimen Jurídico de las Concesiones de Obra Pública en Chile. Madrid, Spain: Uría Menéndez Abogados.
Gómez-Lobo, A. 2012. The ups and downs of a public transport reform: The case of Transantiago. Santiago, Chile: Universidad de Chile.
Graftieaux, P., W. Vergara, and T. Johnson. 2003. “Global environment facility support for sustainable transport: Early lessons from World Bank–assisted projects in Mexico City, Mexico; Santiago, Chile; and Lima, Peru.” Transp. Res. Rec. 1846 (1): 9–13. https://doi.org/10.3141/1846-02.
Grimsey, D., and M. K. Lewis. 2004. Public private partnerships the worldwide revolution in infrastructure provision and project finance. Cheltenham, UK: Edward Elgar.
Guasch, J. L. 2004. Granting and renegotiating concession contracts: Doing it right. Washington, DC: World Bank Publications.
Guasch, J. L., D. Benitez, I. Portabales, and L. Flor. 2014. The renegotiation of public-private partnership contracts: An overview of the recent evolution in Latin America. Paris: Organization for Economic Cooperation and Development.
Hart, O. 2003. “Incomplete contracts and public ownership: Remarks, and an application to public-private partnerships.” Econ. J. 113 (486): C69–C76. https://doi.org/10.1111/1468-0297.00119.
Hodge, G., C. Greve, and M. Biygautane. 2018. “Do PPP’s work? What and how have we been learning so far?” Public Manage. Rev. 20 (3): 1105–1121. https://doi.org/10.1080/14719037.2018.1428410.
Hodge, G. A., and C. Greve. 2007. “Public–private partnerships: An international performance review.” Public Administration Rev. 67 (3): 545–558. https://doi.org/10.1111/j.1540-6210.2007.00736.x.
Humphreys. 2015. Clasificadora de riesgo. Santiago, Chile: Ficha Técnica Infraestructuras.
Ibarra-Coronado, R. 2011. “La Ley de Concesiones de Obras Públicas chilena en el tiempo.” International Law: Revista Colombiana de Derecho Internacional 19 (Jul): 183–222.
Iossa, E., G. Spagnolo, and M. Vellez. 2007. Contract design in public-private partnerships. Washington, DC: World Bank.
Iseki, H., and R. Houtman. 2012. “Evaluation of progress in contractual terms: Two case studies of recent DBFO PPP projects in North America.” Res. Transp. Econ. 36 (1): 73–84. https://doi.org/10.1016/j.retrec.2012.03.004.
Kwak, Y. H., Y. Chih, and C. William Ibbs. 2009. “Towards a comprehensive understanding of public private partnerships for infrastructure development.” California Manage. Rev. 51 (2): 51–78. https://doi.org/10.2307/41166480.
Lawther, W. 2000. Privatising toll roads: A public-private partnership. Westport, CT: Praeger.
Li, B., A. Akintoye, P. J. Edwards, and C. Hardcastle. 2005. “The allocation of risk in PPP/PFI construction projects in the UK.” Int. J. Project Manage. 23 (1): 25–35. https://doi.org/10.1016/j.ijproman.2004.04.006.
Meunier, D., and E. Quinet. 2007. “The contracting of investment and operation, and the management of infrastructure funding bodies.” Res. Transp. Econ. 19 (1): 81–109.
Meunier, D., and E. Quinet. 2010. “Tips and pitfalls in PPP design.” Res. Transp. Econ. 30 (1): 126–138. https://doi.org/10.1016/j.retrec.2010.10.013.
Mills, A. J., G. Durepos, and E. Wiebe. 2010. Encyclopedia of case study research. London: Sage.
Ministerios de Obras Públicas, Transportes y Telecomunicacones. 2003. Cuenta de Gestión MOPTT 2003. Santiago, Chile: Government of Chile.
MOP (Ministerios de Obras Públicas). 2018. “Concesiones en Operación.” Accessed September 1, 2019. http://www.concesiones.cl/proyectos/Paginas/proyectos_operacion.aspx.
Muñoz, J. C., M. Batarce, and D. Hidalgo. 2014. “Transantiago, five years after its launch.” Res. Transp. Econ. 48 (Dec): 184–193. https://doi.org/10.1016/j.retrec.2014.09.041.
Muñoz, J. C., and A. Gschwender. 2008. “Transantiago: A tale of two cities.” Res. Transp. Econ. 22 (1): 45–53. https://doi.org/10.1016/j.retrec.2008.05.010.
Ng, A., and M. Loosemore. 2007. “Risk allocation in the private provision of public infrastructure.” Int. J. Project Manage. 25 (1): 66–76. https://doi.org/10.1016/j.ijproman.2006.06.005.
Nisar, T. 2007. “Value for money drivers in public-private partnership schemes.” Int. J. Public Sect. Manage. 20 (2): 147–156. https://doi.org/10.1108/09513550710731508.
OECD (Organisation for Economic Co-operation and Development). 2007. OECD principles for private sector participation in infrastructure. Paris: OECD.
OECD. 2019. “Average annual wages.” Accessed August 22, 2019. https://stats.oecd.org/Index.aspx?QueryId=25148.
Osborne, S. 2000. Public private partnerships: Theory and practice in international perspective. New York: Routledge.
PPIAF (Public-Private Infrastructure Advisory Facility). 2009. “Urban highway concessions in Santiago, Chile.” In Toolkit for Public-Private Partnerships in Roads & Highways. Washington, DC: PPIAF.
Ragazzi, G. 2005. “Tolls and project financing: A critical view.” Res. Transp. Econ. 15 (1): 41–53. https://doi.org/10.1016/S0739-8859(05)15004-5.
Rizzi, L. I., and J. de Dios Ortúzar. 2003. “Stated preference in the valuation of interurban road safety.” Accid. Anal. Prev. 35 (1): 9–22. https://doi.org/10.1016/S0001-4575(01)00082-3.
Ruiz González, J. E. 2005. “Sistema de Peaje Free-Flow para Autopista Central de Santiago de Chile (Free-flow toll system for the Santiago de Chile Central Motorway).” Revista de Obras Publicas 3456 (Oct): 27–36.
Sabatino, C. 2017. Leveraging public-private partnership projects to modernize infrastructure: The case of Chile. Washington, DC: Global Delivery Initiative.
Sagaris, L. 2014a. “Citizen participation for sustainable transport: The case of ‘Living City’ in Santiago, Chile (1997–2012).” J. Transport Geogr. 41 (Dec): 74–83. https://doi.org/10.1016/j.jtrangeo.2014.08.011.
Sagaris, L. 2014b. “Citizens’ anti-highway revolt in post-Pinochet Chile: Catalyzing innovation in transport planning.” Plann. Pract. Res. 29 (3): 268–286. https://doi.org/10.1080/02697459.2014.929840.
Sagaris, L., and P. Landon. 2017. “Autopistas, ciudadanía y democratización: la Costanera Norte y el Acceso Sur, Santiago de Chile (1997-2007).” EURE 43 (128): 127–151.
Salanié, B. 1997. The economics of contracts: A primer. Cambridge, MA: MIT Press.
Saussier, S. 2013. “Public–private partnerships.” J. Econ. Behav. Organ. 89 (May): 143–144. https://doi.org/10.1016/j.jebo.2012.05.001.
Serebrisky, T., C. Pastor, A. Suarez-Alemán, J. Alberti, and A. González. 2017. Financiamiento privado de la infraestructura de América Latina y el Caribe: Chile, Perú y Uruguay como casos de estudio. Washington, DC: Inter-American Development Bank.
Serebrisky, T., A. Suárez-Alemán, C. Pastor, and A. Wohlhueter. 2018. Lifting the veil on infrastructure investment data in Latin America and the Caribbean. Washington, DC: Inter-American Development Bank.
Sheehan, R. 2008. Technologies that complement congestion pricing: A primer. Washington, DC: Federal Highway Administration.
Silva, E. R. 2011. “Deliberate improvisation: Planning highway franchises in Santiago, Chile.” Plann. Theory 10 (1): 35–52. https://doi.org/10.1177/1473095210386067.
Sistema Oriente-Poniente. 2015. Annual report 2014. Santiago, Chile: Sistema Oriente-Poniente.
Sorensen, P., and B. D. Taylor. 2005. Review and synthesis of road-use metering and charging systems. Los Angeles: Univ. of California Los Angeles Institute of Transportation Studies.
The Economist Intelligence Unit. 2019. Evaluating the environment for public-private partnerships in Latin America and the Caribbean: The 2019 infrascope. New York: The Economist.
Tironi, M., and R. Palacios. 2016. “Affects and urban infrastructures: Researching users’ daily experiences of Santiago de Chile’s transport system.” Emotion Space Soc. 21 (Nov): 41–49. https://doi.org/10.1016/j.emospa.2016.10.003.
Vassallo, J. M. 2006. “Traffic risk mitigation in highway concession projects: The experience of Chile.” J. Transport Econ. Policy 40 (3): 359–381.
Vassallo, J. M. 2011. “Flexible-term highway concessions.” Transp. Res. Rec. 2187 (1): 22–28. https://doi.org/10.3141/2187-04.
Vassallo, J. M. 2015. Asociación público-privada en américa latina: Aprendiendo de la experiencia. Bogotá, Colombia: Coorporación Andina de Fomento.
Vassallo, J. M., M. A. Baeza, and A. Ortega. 2011. “Toll highway concessions in the Madrid metropolitan area: Lessons learned from an unsuccessful experience.” In Proc., Transportation Research Board 90th Annual Meeting. Washington, DC: Transportation Research Board.
Vassallo, J. M., and R. Izquierdo. 2010. Infraestructura pública y participación privada: conceptos y experiencias en América y España. Caracas, Venezuela: Corporación Andina de Fomento.
Vassallo, J. M., A. Ortega, and M. A. Baeza. 2012. “Impact of the economic recession on toll highway concessions in Spain.” J. Manage. Eng. 28 (4): 398–406. https://doi.org/10.1061/(ASCE)ME.1943-5479.0000108.
Vassallo, J. M., and P. Pérez de Villar. 2010. “Diez años de peaje sombra en España.” Revista de Obras Públicas 157 (3506): 19–30.
Vassallo, J. M., and A. Sanchez Soliño. 2006. “Minimum income guarantee in transportation infrastructure concessions in Chile.” Transp. Res. Rec. 1960 (1): 15–22. https://doi.org/10.1177/0361198106196000103.
Vespucio Norte. 2015. Annual report 2014. Santiago, Chile: Vespucio Norte.
Vespucio Sur. 2015. Annual report 2014. Santiago, Chile: Vespucio Sur.
World Bank. 2019a. Private participation in infrastructure (PPI) database. Washington, DC: World Bank.
World Bank. 2019b. “Pump price for diesel fuel (US$ per liter)—Chile.” Accessed August 22, 2019. https://data.worldbank.org/indicator/EP.PMP.DESL.CD?locations=CL.
World Bank. 2019c. “Pump price for gasoline (US$ per liter)—Chile.” Accessed August 22, 2019. https://data.worldbank.org/indicator/EP.PMP.SGAS.CD?locations=CL.
Yescombe, E. R. 2007. Public-private partnerships: Principles of policy and finance. Oxford, UK: Butterworth-Heinemann.
Information & Authors
Information
Published In
Journal of Infrastructure Systems
Volume 26 • Issue 2 • June 2020
Copyright
©2020 American Society of Civil Engineers.
History
Received: Apr 27, 2019
Accepted: Nov 20, 2019
Published online: Mar 30, 2020
Published in print: Jun 1, 2020
Discussion open until: Aug 30, 2020
Authors
Metrics & Citations
Metrics
Citations
Download citation
If you have the appropriate software installed, you can download article citation data to the citation manager of your choice. Simply select your manager software from the list below and click Download.