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Monthly Snapshots - August 2020: Chile Edition

Almost a quarter of Chile's green bonds have been invested

Of the green bonds allocated in 2019, US$589 million (24.8%) have now been allocated according to a recently published report. So far, these bonds have helped finance clean transport projects including a new rapid transit line in Santiago and a 22-km extension of Line 3.

These transport projects are already having a positive impact, as it is estimated that they have avoided 170,300 tonnes of carbon dioxide equivalent each year.

Furthermore, US$24 million has been used to fund green buildings, renewable energy, and water management projects nationwide and in Northern cities. The renewable energy projects have led to the production of over 291,816 MWh of energy so far and green buildings have helped minimize energy consumption, reducing it by over 75% in 2019.

With over US$1700 million remaining, it will be interesting to see how future projects can further benefit Chile’s environment..

Fesur to invest US$200 million in Chile's railroads

Ferrocarriles del Sur (Fesur) will go ahead with their US$200 million investment planned for 2020 despite the current pandemic, according to their president Víctor Lobos. In an interview with Diario Concepción, he stressed the need to continue strengthening the railroads due to their role in the economic development of the region, transporting 35% of all export cargo in Biobío.

The investment will go towards the purchase of new trains, a new maintenance centre in Hualqui and infrastructure improvements including 2,960 tonnes of rails and electrical framework.

Lobos hopes that the community will recognise the importance of the railroads with respect to their living standards as well as the economy. Throughout the pandemic, essential workers have been able to commute and the supply chain has been maintained thanks to the continued services of both passenger and cargo trains.

Moova Arrives in Chile

According to the Santiago Chamber of Commerce, e-commerce almost doubled its sales in Chile between 2016 and 2019 from US$3.074 billion to US$6.079 billion. Coronavirus lockdown measures have increased these figures even further, with online sales increasing by 119% in the last week of March alone, so the arrival of logistics company Moova in Chile has come at a good time.

Moova was set up in 2018 by 2 Argentinians, Antonio Migliore and Marcos Detry. It allows delivery drivers to take advantage of idle space in their vehicles by connecting them with e-commerce companies, thus improving efficiency and providing cheap shipping options.

Moova’s algorithm assigns delivery requests to registered drivers based on their location, the size of the delivery and the driver’s capacity. It can benefit companies of all sizes and is even compatible with Mercado Libre.

It has the potential to help Chilean e-commerce companies improve their value proposition as it allows for same day delivery, competitive prices, and the ability to follow orders in real-time. Just over a year after making their first delivery in March 2019, they have now made over 300,000 deliveries and operate in 5 Latin American countries.

Chilean mechanical ventilators project receives $600 million

SiEmpre, SOFOFA Hub and the Ministry of Science, Technology, Knowledge, and Innovation have come together for a campaign called ‘Un Respiro Para Chile’. The campaign aims to ease the scaling and validation process of mechanical ventilators produced in Chile, which are currently needed more than ever for patients with severe cases of covid-19.

Together, SiEmpre and the government’s Production Development Corporation (Corfo) have allocated $600 million to 2 projects whose prototypes have passed clinical trials based on protocols established by Un Respiro Para Chile. The money will go towards scaling the projects and beginning production.

The executive vice-president of Corfo, Pablo Terrazas, has highlighted how this public-private effort is helping to tackle the crisis as well as how their incentives have encouraged innovation and entrepreneurship in Chile. He also noted that these initiatives are a great example of how Chile can find solutions to problems as complicated as the covid-19 pandemic.

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