Train Project Faces Delays Amidst Legal Challenges and Price Discrepancies

A planned railway project between Valparaíso and Santiago is facing potential setbacks. A legal challenge, stemming from a significant price difference, has cast doubt on the project’s timeline. The controversy involves the winning consortium and a rival group, bringing attention to the bidding process.

Costly Consortium’s Victory

In early May, the Ministry of Public Works announced the initial step toward the Valparaíso-Santiago train’s construction, with the WSP-INECO consortium securing the studies contract. However, the Consultrans-Pini-sustainable group contested this decision in the Public Procurement Court on May 9. This consortium’s offer was $4 billion less than the winning bid.

The Consultrans-Pini-sustainable consortium, which presented an offer of $8,325 million, alleged the evaluation commission overlooked that the winning consortium did not meet requirements. Specifically, they claim the winning group failed to provide the CV of an urban-territorial study professional.

A History of Delays

The quest for a modern Valparaíso-Santiago train has spanned three decades. Discussions started in 1992, with various proposals emerging over the years. In 2018, the Chinese-Chilean Consortium TVS proposed a fast train. However, social unrest and the pandemic disrupted the project’s progress.

In 2023, as part of its “Trains for Chile” plan, Gabriel Boric announced new studies. Yet, the initial tender was unsuccessful because no bids met the criteria. The second call, in November 2024, received seven proposals. Three were disqualified for not submitting the required documents.

Controversy Surrounds the Winning Company

WSP Global, a large engineering firm, is part of the winning consortium. Despite its international standing, WSP has faced scrutiny. The New York Times reported issues with a Manhattan building involving WSP, where owners, including Jennifer López, are seeking $165 million in compensation.

The evaluation commission awarded the WSP-INCO proposal a 6.5 average in technical qualifications. The company received its highest sub-score for its “general experience and background,” achieving a 6.6. In contrast, Consultrans-Pini-Styntable obtained 5.9, the lowest score among the four that met the basic requirements.

The Crucial Missing Document

Consultrans-Pini-sustainable argues the winning consortium should have been disqualified. The consortium did not include the CV of Francisco Baranda, the urban-territorial study professional, as required. The evaluation commission supplied the document by extracting it from another public proposal.

The commission stated its actions aimed to protect the Treasury’s interests. Their goal was to promote maximum competition. They sought to avoid dismissing a potentially advantageous offer due to non-essential errors. The court has not yet decided on the claims of Consultrans-Pini-sustainable.

Cost Implications and Legal Battles

The financial aspect of the project is also at issue. The Consultrans-Pini-sustainable bid of $8,355 million received the highest score. The WSP-INECO proposal, valued at $13,554 million, earned fewer points. The final scoring awarded the project to the Canadian-Spanish consortium by a margin of one point, despite a $4 billion difference in price.

From the General Directorate of Concessions of the MOP, officials responded that the economic aspect accounts for 20% of the evaluation. The other 80% is the technical qualification. They clarified, “The technical qualification is the lowest of 4 offers [referring to the Consultrans-Pini-Sustentable offer].”

Potential Delays Loom

The Public Procurement Court has not yet ruled on the claims from Consultrans-Pini-Stentable. The group sought to halt the process. The court did not grant this request initially. However, the court has noted that the ultimate resolution is still pending.

Should the court accept the request, the MOP may need to re-evaluate the technical and economic offers. This would likely further postpone the Santiago-Valparaíso train. The government planned to publish the work bidding bases in 2026, but the court’s decision could prolong this timeline. It’s normal that decisions from the court can take over six months, according to the report.

MOP Defends Procedures

Consultrans-Pini-sustainable contests the Evaluation Commission’s decision to include the missing CV. From the DGC, they defended their actions, citing principles of efficiency, saying “the evaluation commission could verify compliance with the specific experience requirements of the professional offered.”

The investigation unit tried to obtain a statement from WSP and INECO, but there was no response before the publication of the original article. According to the World Bank, infrastructure projects often face significant cost overruns. The average cost increase for transportation projects is 20% or more, globally (World Bank, 2015).