1. Chile: Business Environment and Investment Opportunities in Infrastructure Margarita Yim Advisor of Chile's Foreign Investment Committee myim@ciechile.gob.cl www.ciechile.gob.cl

2. SNAPSHOT OF THE CHILEAN ECONOMY Social Population16.6 million Official languageSpanish CurrencyPeso Literacy rate97% Life Expectancy79 years Economy GDP 2013US$ 282 Billion (IMF) GDP per capita (PPP, 2013)US$19,104 1° place in Latin America (IMF) Actual interest rate (Monetary Policy) 3,5% Unemployment rate6,5% (Apr. – Jun 2014) External Public Debt (2013)US$ 24,4 billion Exports (2013)US$ 77,4 billion Imports (2013)US$ 74,9 billion Chile’s Sovereign Ratings Fitch RatingsA+ Standard & PoorsAA- Moody’sAa3

3.  Business Environment

4. OUTSTANDING BUSINESS ENVIRONMENT

5. 23 FREE TRADE AGREEMENTS WITH 61 COUNTRIES 13 Free Trade Agreements 3 Economic Partnership Agreement 6 Economic Complementation Agreement 2 Agreements in negotiation 63% of world population 93.8% of Chile’s export markets 85% of the global GDP Agreements signed but not yet in force Agreements in force

6. AVOIDANCE OF DOUBLE TAXATION AGREEMENTS Australia Belgium Brazil Canada Colombia Korea Croatia Denmark Ecuador Spain France Ireland Malaysia Mexico Norway New Zealand Paraguay Peru Poland Portugal United Kingdom Russia Sweden Switzerland Thailand Chile has entered into 25 ADTA with 25 countries.

7. Fuente: Foro Económico Mundial Quality of overall Infrastructure Quality of overall Infrastructure 2013-2014

8. Quality of roads 2013-2014 Quality of roads Fuente: Foro Económico Mundial Quality of railroad Infrastructure 2013-2014

9. Quality Index Quality of port Infrastructure 2013-2014 Fuente: Foro Económico Mundial Quality of air transport Infrastructure 2013-2014

10. Investment Requirements 2012 - 2016 SectorTotal (MMUS$) Urban roads11.721 Electricity13.257 Ports1.754 Water Resources3.276 Interurban roads11.581 Airports1.070 Hospital & Prison infrastructure5.031 Total47.690 Challenges an Opportunities Fuente: CChC

11.  Infrastructure Concession Opportunities

12. Road Connection Route 78 to South 68 USD 117 Millones 25 - year concession Highway Nahuelbuta USD 257 Millones 30 -year Concession Highway Santiago – Lampa USD 237 Millones By Nueva Vía Consultores Ltda Opportunities – Infrastructure Highway

13. Re-tender Airport AMB USD 720 Millones Punilla Water Reservoir 35-year Concession USD 600 Millones Project Margamar Urban, sports and recreational Infrastructure in Viña del Mar. 35 -year Concession USD 110 Millones Investment Opportunities in Infrastructura - Concessions

14.  Request to be submitted at the Undersecretary of Armed Forces.  Project Coastal uses: Ports, Inlet, Real Estate Projects, Power Plants.  4200 km of continental coastline.  Access to the beaches, sea life, lots of water and rocks, navigable bays, rivers and lakes by vessels of over 100 ton. Maritime Concessoines

15. Process features  Online inquiry: the processing of maritime consessions.  Statements by the regional commissions for use of the Coastaline.  Simplification y standardization of the process.  Known criteria for the collection of rents  Format for submission of applications. Maritime Concessions

16.  Investment plan in Metropolitan, O’Higgins, Valparaíso and Bío Bío Regions.  Renovation of the fleet of trains, infrastructure and optimize route  Total Investment of USD 860 million: Rancagua USD 287 Millon. Bío Bío USD 77 Million. Valparaíso USD 43 Million. Melipilla USD 460 Million.  100 milllon passengers by 2020  Investment Opportunities: Engineering Equipment Civil Woks and Infrastructure Nationl Railroad compay EFE 3 year investment Plan

17. State Autonomous enterprises Investment plan to USD 1.800 million Concessions in 8 of the 10 state ports Iquique Port USD 150 to USD 400 million 5,6 million tons by 2025 Antofagasta Port 28% exports (mainly copper) 4 docking sites USD 20 Mililon Chacabuco Port Build fronts docking Aquaculture Terminal Opportunities – Ports

18. Build tunnels, shafts, galleries Railways Platform screen door systems Ticket gatesEquipment Investment opportunities - Line 3 and 6 by Metro S.A.

19.  Investment opportunities

20. THE CHILEAN MINING SECTOR IN FIGURES  Chile has 28% of the world´s copper reserves (USGS 2012)  Chile is the world´s number 1 producter of copper( 32% ),the 6th most important producer of silver and also produces:  Natural nitrates (100% )  Iodeine ( 58%).  Lithium ( 45%)  Mining companies have plans to invest US$112 billion during the next 8 years (August 2013)  The combined expenditure of the companies in the mining industry is at least US$15 billion per year  There are at least 4600 mining supplier companies in Chile and world class mining suppliers are present in the country Further information is available at: www.minmineria.cl MINING

21. THE CHILEAN ELECTRIC SECTOR IN FIGURES  Installed capacity is 17.7 GW (December 2013)  The capacity is distributed via different networks::  The Central Inter-connected System (SIC) 78%  The Northern Inter-connected System (SING) 21%  The Aysén and Magallanes systems, 1%  In 2013 the gross generation of SIC and SING was 68,050GWh with an increase of 3.8% compared to 2012  In 2013 hydroelectric generation (excluding mini hydro power stations) accounted for 26.6% of generation, coal fired power 46.4%, natural gas 16.6% and renewable non- conventional sources 6.3% Further information is available at: www.minenergia.cl Source: Chile's National Commission of Energy ENERGY

22. NEWS AREAS OF FOCUS FOR ENERGY - PILLARS – (1) 1.New Role of Government. 2. Reduction in energy prices through more competition, efficiency and diversification in the Energy Market. 3. Development of our own Energy Resources. 4. Connectivity for Energy Development. 5. An Efficient Energy Sector that manages consumption. 6. Boost to investment in energy infrastructure. 7. Citizen’s Participation and planning of opportunities by territory. Source: Chile's Energy Agenda (1) ENERGY

23. Chapter XIVDecree Law 600 (D. L. 600) A minimun of US$10.000 can be brought in through this mechmism in the form of currency or loans. Voluntary for operations in excess of US$5 million (first investments in cash) and US$2.5million (fixed assets). Dose not imply singing a contract of any type.Contract executed with the State represented by the Foreign Investment Committee. Governed by a common tax regime.Optional tax stabilization regime. Foreign Investment Mechanisms in Chile

24. Source: Central Bank of Chile FDI INFLOWS IN CHILE 2009-2013 (US$100.8 BILLION )

25. Information about Chile’s business climate. Portfolio of public and private investment projects. Reports and other publications. Information about DL 600. FDI statistics. Material in Spanish, English and Chinese. Participation in forums. Legal advice for the signing of a foreign investment contract. Assistance in preparing schedule of meetings. Processing of investors’ queries and applications. Foreign investment contract. Investment facilitation services Information services Tools OUR ACTIVITIES AND TOOLS

26. www.chileinvestmentforum.cl

27. AVISO LEGAL: La información contenida en este documento está destinada exclusivamente para fines informativos y las condiciones particulares de cada potencial proyecto en específico pueden variar respecto de las aquí descritas. El contenido de este documento no debe interpretarse de ninguna manera como una obligación jurídica vinculante para la República de Chile o para cualquier otra agencia estatal que participe de alguna manera en los procesos de aprobaciones administrativas o de cualesquiera otra naturaleza que correspondan según la legislación nacional. Esta información no constituye, de modo alguno, una autorización para el inicio o ejecución de la actividad económica que potencialmente se pretenda desarrollar. Los acuerdos resultantes serán regidos e interpretados exclusivamente según las leyes de la República de Chile, sus reglamentos y políticas nacionales aplicables a cada caso en particular. www.ciechile.gob.cl info@ciechile.gob.cl Margarita Yim Advisor of Chile's Foreign Investment Committee myim@ciechile.gob.cl Phone: 02 – 775 1250