National Evaluation and Productivity Commission to analyze priority sectorial permits for investment

National Evaluation and Productivity Commission to analyze priority sectorial permits for investment

Recognizing the impact of investment on economic growth and dynamism and aiming to improve the effectiveness of regulatory procedures and permits, the National Evaluation and Productivity Commission (NEPC) will conduct a new study analyzing priority sectorial permits for investment. The objective is to propose substantial improvements in efficiency, predictability, and stability.

Thursday, February 23, 2023

This study, commissioned by the Chilean government, builds upon the NEPC’s previous research in 2019 titled “Regulatory Review of Strategic Sectors,” which identified 400 special permits required for investments in the mining, energy, real estate, infrastructure, and industry sectors. For that research, the NPEC prioritized 23 essential permits.

In this new study, the NEPC will delve deeper beyond those 23 permits. Specifically, it will focus on permits considered priorities for investment development in Chile. The study will then identify all sectorial permits that any investment project must consider (regardless of the sector) and specific permits that pertain to the most relevant sectors in the national economy.

The study, “Analysis of Priority Sectorial Permits for Investment in Chile,” will be conducted in two stages. The first stage will identify the priority sectorial permits required to develop an investment project in Chile. It will involve examining the object of protection of each permit, the procedure for obtaining them, their relationship with other permits, and administrative update techniques.

Furthermore, international best practices will be examined, and the prioritized permits for analysis will be defined based on updated qualitative and quantitative evidence.

In the second stage, recommendations will be proposed to establish an efficient, predictable, and stable system for processing sectorial permits. This system will incentivize the development of sustainable investment projects while ensuring that evaluation procedures uphold project quality and protect the legal interests targeted by sectorial permits.

It is worth mentioning that the NEPC has observed a sustained deceleration of productivity in the Chilean economy and has identified an increasing complexity of permits required for investments, often needing an integrated and rationalized overview. The institution has emphasized the need to implement measures that facilitate resource mobilization for especially complex investment projects without compromising the protection standards that these permits must guarantee.

Ultimately, this research aims to identify areas for improvement and propose measures that promote establishing an efficient, predictable, and stable system for processing permits, thereby encouraging the development of sustainable investment projects.

Considering the significance of the study’s results, a timeframe of 3 months is estimated for its completion, with partial deliverables associated with the defined stages. It will provide the necessary inputs for policy development to enhance productivity in sectorial permits.