Background and Relevance
After nearly a year and a half of deliberation, on Tuesday afternoon, the Chilean Chamber of Deputies approved the framework project for sectoral authorization, advancing its third constitutional stage and preparing it to become law. This significant step is expected to expedite the permitting process for investment projects, garnering strong support from the business community.
Project Details and Support
The project was introduced in January 2024 by the Executive as an initiative to cut down on permit processing times for investment projects. With 93 votes in favor, 27 against, and 17 abstentions, the amendments made in the Senate have now paved the way for the bill to become law.
The new legislation aims to slash processing times by 30% to 70%, depending on the project’s scale. It modifies 380 sectoral authorizations across 37 services and 16 ministries.
New Institutional Framework
The project introduces a Sectorial Regulation and Evaluation System, along with new institutional mechanisms and tools designed to accelerate authorization processing. It includes penalties for service officials and incentives for project users.
Following its passage through both chambers, the project proposes various solutions to streamline sectoral authorization processing.
Key Provisions
- Establishes minimum processing standards for all sectoral permits, including forms, admissibility examination, and inter-service reports.
- Ensures regulatory stability through inter-service reporting, maximum mandatory timeframes, and the use of administrative silence.
- Introduces Alternative Enabling Techniques, such as affidavits or notices, replacing low-risk permits. These will be subject to post-facto monitoring, and fraud cases will face penalties.
- Creates the Sectorial Authorizations and Investment Office as a new institutional body.
Impact on Projects and Stakeholders
This new legislation will have a substantial impact on various projects and their stakeholders. By reducing processing times, the bill aims to encourage investments, foster economic growth, and create jobs. The streamlined authorization process will benefit both public and private sectors, ultimately contributing to Chile’s development.
Key Questions and Answers
- What is the purpose of this new legislation? The primary goal is to expedite the permitting process for investment projects, reducing processing times by 30% to 70%, depending on the project’s scale.
- Which sectoral authorizations are being modified? The project modifies 380 sectoral authorizations across 37 services and 16 ministries.
- What new institutional mechanisms are being introduced? A Sectorial Regulation and Evaluation System, along with new tools and penalties for officials and incentives for users, are being established.
- How will regulatory stability be ensured? Regulatory stability is maintained through inter-service reporting, maximum mandatory timeframes, and the use of administrative silence.
- What are Alternative Enabling Techniques? These are affidavits or notices replacing low-risk permits, subject to post-facto monitoring and penalties for fraud.
- What is the Sectorial Authorizations and Investment Office? It’s a new institutional body created to oversee the streamlined authorization process.
