Project description
The proposed early disclosure covers an application for MIGA guarantees in support of non-shareholder loans to be provided by commercial lenders yet to be identified to Empresa de Transporte de Pasajeros Metro S.A. (Metro de Santiago), to support the construction of Lines 8 and 9, the acquisition of rolling stock, as well as works related to the modernization of the existing metro network (the Project). The MIGA guarantees are expected to be for up to USD 802.47 million against the risk of Non-Honoring of Financial Obligations by a State-Owned Enterprise (NHFO-SOE) for loans with an aggregate principal amount of up to USD 500 million, plus future interest, MIGA premium, and eligible transaction costs, with a tenor of up to 15 years.
The Project includes the construction of two new underground metro lines in Santiago, comprising approximately 46 km and 33 stations, extending service along key southern and southeastern corridors of the city that currently lack metro coverage. The Project also covers the acquisition of rolling stock and modernization works across the existing network, including upgrades aimed at maintaining operational reliability, safety, and system performance as network capacity expands.
Environmental Categorization
The Project is Category A under MIGA Policy on Environmental and Social Sustainability (2013).
Through this early disclosure, MIGA provides early access to the Project’s Environmental and Social Impact Assessment (ESIA) and other relevant E&S documents:
The E&S documents were commissioned by Metro de Santiago, the implementing entity for the Project, and should not be taken as an indication that MIGA has completed its review of the Project. Any documentation included or attached herein has been prepared and authorized for public release by entities other than MIGA. MIGA does not guarantee the quality of the Project’s E&S documents and other relevant documents.
The disclosure of the Project’s E&S documents should not be construed as presuming the outcome of MIGA’s environmental and social (E&S) review. MIGA’s E&S due diligence will be carried out in accordance with the MIGA Policy on Environmental and Social Sustainability (2013). Details of MIGA’s findings and gaps to the MIGA Performance Standards on E&S Sustainability (2013) will be reflected in an Environmental and Social Review Summary (ESRS) for the Project, supplemented with an Environmental & Social Action Plan (ESAP), and published on MIGA’s website ahead of the Project’s consideration for approval, per MIGA’s Access to Information Policy (2013).
Development Impact
By supporting the expansion and strengthening of Santiago’s metro network, the Project is expected to improve urban connectivity and integration across the Santiago Metropolitan Region, enhance access to reliable and high-capacity public transport, while reducing travel times and promoting social inclusion, and contribute to the decarbonization of the transport sector in Chile through the expansion of low-carbon mass transit infrastructure. The Project is aligned with Chile’s National Strategy for Sustainable Mobility and the World Bank Group’s Country Partnership Framework (CPF) FY24-27.
MIGA supports its clients (as defined in MIGA Policy on Environmental and Social Sustainability) in addressing environmental and social issues arising from their business activities by requiring direct investment clients to set up and administer appropriate grievance mechanisms and/or procedures to address complaints from Affected Communities. MIGA support to Financial Intermediary clients applying the Performance Standards are required to develop External Communications Mechanisms to receive and review inquiries or complaints from any interested party regarding the E&S risks and impacts of their operations as per the requirements of Performance Standards 1.
In addition, Affected Communities have unrestricted access to the Compliance Advisor/Ombudsman (CAO), the independent accountability mechanism for MIGA. The CAO is mandated to address complaints from people affected by MIGA-guaranteed business activities in a manner that is fair, objective, and constructive, with the goal of improving environmental and social project outcomes and fostering greater public accountability of MIGA.
Independent of MIGA management and reporting directly to the World Bank Group President, the CAO works to resolve complaints using a flexible, problem-solving approach through its dispute resolution arm and oversees project-level audits of MIGA’s environmental and social performance through its compliance arm.
Complaints may relate to any aspect of MIGA-guaranteed business activities that is within the mandate of the CAO. They can be made by any individual, group, community, entity, or other party affected or likely to be affected by the environmental or social impacts of a MIGA-guaranteed business activity. Complaints can be submitted to the CAO in writing to the address below:
Compliance Advisor/Ombudsman
International Finance Corporation
2121 Pennsylvania Avenue NW
Room F11K-232
Washington, DC 20433 USA
Tel: 1 202 458 1973
Fax: 1 202 522 7400
E-mail: cao-compliance [at] ifc.org
