New economic data published by the Banco Central de Chile indicates that the country's economy has suffered the effects the global downturn despite strong government stimulus measures. BMI has revised down its forecasts from positive growth for the construction industry in 2009 to a fall of -5.5% year on year (y-o-y). The country has already invested more than US$4bn in stimulus measures mainly focused on infrastructure. In the private sector, however, delays are being seen, such as at MPX Energía de Chile's Catilla power plant, which has been delayed pending financing. Chile's second largest power generator, Colbun, has however announced plans to invest US$1bn in the construction of two new hydropower plants with a total capacity of 500MW. A combination of strong institutions, political stability and sound macroeconomic fundamentals has helped Chile to unlock private investment into its infrastructure sector. Chile scores equal to the US for its infrastructure market business environment. This is far reduced compared with the previous quarter - where it had the highest score in the region -due to a sharp contraction in gross fixed capital formation estimated in 2009. Its strong country structure, political stability and limited risks places it only marginally behind the US in terms of its BMI Project Finance rating. Overall, Chile's economy is expected to recover quicker than most of its neighbours putting the country at an advantage moving into 2010. Despite low construction-
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