Recognizing that the state could not possibly come up with the funds, the government implemented a public works concessions program, under which infrastructure projects are put out to tender, with both domestic and foreign private investors being invited to for contracts. By providing quality services that users are prepared to pay for, investors can be assured of returns on their investment, and in some cases state guarantees are provided. The government is now concentrating on three areas that it refers to as social infrastructure, economic development infrastructure and integration infrastructure. MOP has a total of 11 infrastructure projects that it will put out to tender this year 2001. Social Infrastructure Social Infrastructure projects are intended to improve facilities for everyday life, such as drinking water for rural inhabitants, many of whom still do not enjoy such a privilege, local transport services, or projects benefiting the artisan fishing industry.
Irrigation is also key to social infrastructure.
Many of these projects have to be financed by the state because they are inherently unprofitable. The private sector plays an important role in these projects, which include rebuilding and expanding highways that provide returns on investment via toll fees. Route 5, or the Pan-American Highway, is the most important road project. Over 1,500 kilometers running along the country's backbone from La Serena in the north to Puerto Montt in the south are being turned into a modern four lane expressway. In the long term, in as many as 20 to 30 years, the government plans to build a completely new international airport to serve Santiago and cities within about a roughly 100 kilometer radius of the capital.