Andean Highway Pass Program, Financial and Economic Appraisal

The Andean High Pass Program is evaluated as a pure public sector infrastructure investment. Since each pass crosses the territory of Argentina to Chile, it is a bi-national investment. This infrastructural investment affects not only the economies of Argentina and Chile, but also those of other countries, especially countries located in the lower half of South America. Since the Program is a public sector investment, the focus of the analysis is on the economic evaluation. The analysis is organized around the two major stakeholders in the project: Argentinean residents and Chilean residents. Each pass is constructed jointly by the Argentinean and Chilean governments, but the economic costs and benefits in this study are estimated separately for Argentina, Chile and the rest of the world.