Chile Roundup: Loan, budget increment, off-road racing concerns

IDB loan

Chile has taken significant steps towards a sustainable future by securing a $100 million loan from the Inter-American Development Bank (IDB). This 20-year loan, which features a grace period of 5.5 years with interest rates linked to SOFR, aims to facilitate Chile’s transition to a carbon-neutral economy. The funds are earmarked for crucial areas such as climate adaptation, biodiversity protection, and enhancing climate planning for public and private sector investments. Furthermore, Brazilian payments company Stone is actively seeking up to $50 million from the International Finance Corporation to support women-owned micro, small, and medium-sized enterprises in the Amazon region, Latin Finance reports.

2.7% spending increase in 2025 budget

In tandem with economic measures, Chile's President Gabriel Boric has outlined a proposal for a 2.7% increase in the 2025 national budget. This proposed budget prioritises funding for pensions, healthcare, and national security, including an additional $1.5 billion for justice and security initiatives. To strengthen public safety, there are plans to increase police presence and officer remuneration. President Boric has marked security concerns as a primary focus while addressing migration issues, advocating for the expulsion of individuals who fail to register officially. Notably, the proposed budget also aims to enhance immunisation programmes by 42% and digitalise 240 permit processes to stimulate investment, with an overall economic growth target of 2.6%. The budget proposal is set to be presented to Congress for approval within a 60-day timeframe, MarketScreener highlights.

Racing concerns

Environmental concerns are rising as off-road racing activities in Chile’s Atacama Desert have been identified as a significant threat to ancient geoglyphs, particularly in the Tarapacá region. Recent drone footage by the Atacama Desert Foundation has revealed extensive damage characterised by tire tracks that obscure historic carvings, some dating back over 1,000 years. Archaeologist Gonzálo Pimentel has noted this as one of the most severe instances of damage recorded. According to Hyperallergic, the popularity of off-road racing among tourists, coupled with the absence of effective protective measures, endangers the cultural heritage of the region. Pimentel has expressed concern that unless proactive measures are implemented, the destruction of these irreplaceable artefacts is likely to escalate.

Chile seeks to import India's iconic trains

On the international railway front, several countries, including Chile, Canada, and Malaysia, are showing interest in importing India's Vande Bharat trains, celebrated for their cost-effectiveness and impressive performance metrics. The manufacturing costs of these trains in India range from Rs 120-130 crores, notably less than the Rs 160-180 crores associated with equivalent models from other nations. The Vande Bharat trains boast a remarkable acceleration from 0 to 100 km/h in just 52 seconds, surpassing Japan's bullet trains, while also achieving lower noise output and energy consumption. Indian Railways is committed to expanding its network, targeting an addition of 40,000 kilometres to the existing 31,000 kilometres of rail tracks in the coming years, Zee News reports. Railways Minister Ashwini Vaishnaw has highlighted ongoing advancements in the bullet train project alongside the installation of the indigenous Kavach automatic train protection system across the upcoming network to reduce accidents by 80%. Complementary safety measures are being instituted, including rigorous inspections and track renewals.

Demand for needle grass

In agricultural contexts, attention has turned to Chilean needle grass, identified as a highly invasive perennial weed detrimental to ecosystems and agricultural viability in southeast NSW. Closely related to the serrated tussock, this species can proliferate unnoticed for extended periods due to its blending capabilities with other vegetation. The threat posed by Chilean needle grass includes its dominance over native flora, reduction in biodiversity, and potential injuries to livestock from its sharp seeds. Effective management strategies are necessary to control this invasive species, reports the Mirage.