The renewable energy industry in Chile provides lots of opportunities for business. Firstly, Chile´s diverse territory offers the perfect conditions for the production of solar energy, wind energy, marine energy, geothermal energy and some other renewable energies. Furthermore, Chile also has a stable political environment and a prospective economy. These factors make the renewable energy sector in Chile a very interesting destination for investment. However, investing in foreign countries can be complex at times due to legal and cultural differences. Therefore, in this article, we will explain how to bid for governmental contracts in the renewable energy industry in Chile.
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How to Bid for Governmental Contracts in the Renewable Energy Industry in Chile?
One of the options to invest in the Chilean renewable energy sector is by obtaining governmental contracts that allow the owner to build and/or operate within that specific area. One way that the Chilean government awards governmental contracts for renewable energy projects through tenders. These contracts are eventually awarded by the National Energy Commission of Chile. The winning bid will also be published, including the name of the company and the value of the bid.
In order to bid both foreign and local bidders on government tenders must first register at the Chilean Bureau of Government Procurement Supplies (Dirección de Aprovisionamiento del Estado). In addition, they must also post a bank and/or guarantee bond. The value of this bond usually around ten per cent of the total bid. This is to ensure compliance with specifications and delivery dates. Furthermore, it is required that the tenders are made in written Spanish. Moreover, it is recommended to do the bidding through a local agent who is experienced with the government bidding process, registered and well-connected.
Chile also has free trade agreements with many countries that ensure that the bidding process is on a non-discriminatory base. Hence creating equal opportunities for both foreign and local bidders. Furthermore, the tender opportunities should be published at least thirty days in advance and technical specifications or requirements should be performance-based. Some of the tenders can be found on Globaltenders.com.
Where can you find more information?
As mentioned before, when doing business abroad can some complexities. At Biz Latin Hub we have a team of local and expat professionals who offer services that can help you to overcome all difficulties when doing business. Get in contact with our team in Chile at here and see how we can help you.
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The information provided here within should not be construed as formal guidance or advice. Please consult a professional for your specific situation. Information provided is for informative purposes only and may not capture all pertinent laws, standards, and best practices. The regulatory landscape is continually evolving; information mentioned may be outdated and/or could undergo changes. The interpretations presented are not official. Some sections are based on the interpretations or views of relevant authorities, but we cannot ensure that these perspectives will be supported in all professional settings.