President Piñera inaugurates new El Melón Tunnel on Route 5 North: “The fact that this was built during a pandemic is an achievement that speaks to the abilities and dedication of Chilean workers.”
The President also discussed the progress made on the Step by Step Chile Recovers Plan, which was introduced in August 2020 as part of an effort to restart the economy in a decentralized, inclusive and sustainable manner.
On Thursday, President Sebastián Piñera inaugurated the new El Melón Tunnel located at kilometer 127 of Route 5 North. The project, which will run parallel to the existing tunnel, will decrease travel times, reduce tolls, and make Route 5 North a two-lane highway between Santiago and Los Vilos.
“This tunnel fulfills the vital function of connecting Chileans and bringing people together,” the President said during an event that was also attended by Public Works Minister Alfredo Moreno.
Work on the new tunnel began on October 12, 2018, and the project cost over US$124 million. This is the first project to be completed under the Public Works Concessions System. It is 2.8 kilometers long and is located between kilometers 127.5 and 132.9 of Route 5 North in the Quillota y Petorca Province of the Valparaíso Region.
Once the tunnel is open to traffic, tolls will drop by between CLP$1,000 and $1,200 (31%) and all of Route 5 North between Santiago and Los Vilos will have two lanes. This will allow people to move more quickly between the central and northern parts of the country and will decrease the likelihood of head-on collisions by 80%.
“I want to thank everyone who imagined, dreamed, designed and built this project. I want to thank the engineers, architects and structural engineers, and especially the 732 workers who built this tunnel for all Chileans using their hands and their minds,” President Piñera said. He also noted that the inauguration of the new tunnel will allow the government to close the Melón 1 tunnel so that it can be modernized. The goal is to improve the structure to provide conditions similar to those of the new tunnel and increase travel speeds.
The President also discussed the progress made on the Step by Step Chile Recovers Plan, which was introduced in August 2020 as part of an effort to restart the economy in a decentralized, inclusive and sustainable manner.
“Chile’s economy is experiencing strong recovery. We have had several months of recovery and growth, and we hope to restore half of the jobs that we lost,” he said.
As a result of the COVID-19 pandemic, Chile suffered its greatest drop in economic activity in 35 years. According to National Statistics Institute (INE) data, some 900,000 jobs were lost between February and July 2020.
Nearly a year after its implementation, the Step by Step Chile Recovers Plan has made significant progress in its four focus areas: job creation, support for SMEs, public and private investment, and streamlining and simplifying permits.
Four subsidies have been granted in order to reactivate and maintain economic activity and encourage companies to hire new employees. There are also ongoing initiatives designed to support the recovery of SMEs, including the Mipyme bond, which offers a CLP$1 million grant to micro, small and medium enterprises.
The government has announced an investment plan that involves allocating an additional $4.5 billion to several ministries’ budgets between 2020 and 2022.
The beneficiary institutions include Public Works, with over 2,550 projects in place to date; Transportation, with the extension of Metro Line 2 and the approval of Line 7, which will connect Renca and Vitacura; and Housing, which will provide homes for nearly 400,000 families by building or improving over 94,000 residential structures.
“We have always known how to get back on our feet and start moving forward again in the face of adversity and difficult times. I feel like that is happening again today,” President Piñera concluded.