Chile Enacts Landmark Sectoral Permitting Reform Bill to Boost Investment

Historic Reform Published in Official Gazette

Santiago, Chile – Chile has officially enacted its comprehensive sectoral permitting reform bill, known as Ley N° 21.770, Ley Marco de Autorizaciones Sectoriales (LMAS), or the Framework Law on Sectoral Authorizations. The legislation was published in the official gazette on Monday, September 29, 2025, marking a significant step towards fostering investment and economic growth in the country.

The reform is designed to address long-standing concerns from the private sector regarding bureaucratic hurdles and lengthy approval processes, which have often delayed or deterred crucial investment projects. Its primary objective is to streamline administrative procedures and reduce red tape, ultimately aiming to cut permit processing times by an estimated 30% to 70%, without compromising existing environmental or regulatory standards.

Key Measures to Streamline Processes

The newly enacted law introduces several pivotal changes to the permitting landscape:

• Alternative Enabling Techniques (THA): For low-risk permits, the law allows for the use of alternative enabling techniques, such as sworn declarations or simple notices, effectively replacing more complex traditional permit requirements.
• Standardized Procedures and Deadlines: It establishes minimum standardized rules for administrative procedures, including the imposition of maximum mandatory deadlines for government agencies to process applications.
• Administrative Silence: A crucial provision introduces the concept of 'administrative silence.' If a public agency fails to respond to a permit application within the legally stipulated timeframe, the permit will be considered granted, thereby preventing indefinite delays.
• Unified Digital Platform (SUPER): The reform mandates the creation of the Sistema de Información Unificado de Permisos Sectoriales (SUPER), a mandatory digital one-stop shop for all sectoral permit applications. This platform will ensure end-to-end traceability and real-time tracking of applications.

Economy Minister Nicolás Grau has been a vocal proponent of the reform, emphasizing that the goal is to 'substantially reduce permitting times' while rigorously maintaining 'regulatory rigour.'

Impact on Key Economic Sectors

The LMAS is expected to have a profound impact across various sectors critical to Chile's economy. Industries such as mining, renewable energy, infrastructure, housing, and municipal projects are anticipated to be among the primary beneficiaries. The mining sector, in particular, has faced challenges with project approvals sometimes extending up to 12 years, making this reform highly anticipated.

The law also involves the modification of over 40 sectoral regulations to align them with the new framework, demonstrating the broad scope of this legislative overhaul. Furthermore, a new office or agency will be established under the Economy Ministry to coordinate the numerous permitting processes currently managed by various government bodies.

Implementation and Future Outlook

While the law officially came into effect upon its publication, many of its provisions will require the subsequent issuance of specific regulations for their full implementation. The government has outlined timelines for these regulatory developments, with some aspects taking immediate effect and others requiring several months or even a year to be fully operational.

This reform is part of a broader governmental strategy to enhance Chile's competitiveness and attract foreign investment. It complements ongoing discussions in Congress regarding a separate bill aimed at overhauling the environmental evaluation system, indicating a comprehensive approach to modernizing regulatory frameworks.