RECONSTRUCTION

PROGRESS REPORT

FOLLOWING THE

EARTHQUAKE OF

FEBRUARY 27, 2010

February 2013

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RECONSTRUCTION PROGRESS REPORT

FOLLOWING THE EARTHQUAKE OF FEBRUARY 27, 2010

GOVERNMENT OF PRESIDENT SEBASTIÁN PIÑERA

FEBRUARY 2013

Presidential Unit on Compliance Management Inter-ministry Coordination Division

Ministry General Secretariat of the Presidency of Chile

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Executive Summary

In response to the earthquake and tsunami of February 27, 2010, President Sebastián Piñera pledged to rebuild not only the infrastructure that had been damaged and destroyed, but also repair the social fabric of the nation, with a reconstruction plan that had at its heart the human interests of the Chilean people. President Piñera set out a roadmap that would enable the country to overcome the disaster and emerge from it strengthened through an inclusive plan of public, private and citizen support. The program was divided into three stages: Immediate Emergency, Winter Emergency and Reconstruction. The first stage focused on providing assistance to victims and restoring public order; the second centered on normalizing the start of the school year, ensuring sanitation services and building emergency housing for the winter; and the third involved the design of permanent solutions that would allow the country to overcome the disaster and be better prepared to cope with future disasters.

President Piñera presented the Reconstruction Plan six months later, on August 27, 2010, in the city of Concepción. The four-year plan detailed the specific objectives and actions for rebuilding the damaged infrastructure and ensuring that Chile would be in a stronger position to face any future adversities. The Reconstruction Plan has focused on addressing the human costs of the disaster, helping victims, respecting their dignity and giving families the freedom of choice, rather than simply recovering material goods in terms of numbers and deadlines, which would have been easily achieved with the construction of uniform solutions on empty lots.

While President Piñera’s approach initially made the reconstruction process more difficult, it has meant that the dignity and freedom of choice for those affected has been respected and the social fabric of family life has been preserved. Families were given the opportunity to rebuild their homes on the original site, and although this made the reconstruction more complex, it ensured that families and communities would not be uprooted. During the reconstruction, efforts were made to preserve Chile’s heritage, culture and history, conserving the architectural image of traditional towns despite the tremendous design and execution challenges that this involved. The urban planning process also factored in the tsunami risk, with risk studies and the design of mitigation parks and special housing regulations in these areas even though it may be decades before an event of this magnitude affects the country again. In response to the 2010 earthquake, the Government decided to build better neighborhoods and cities through its Urban Reconstruction and Regeneration Master Plans. Throughout the reconstruction process, the families that were affected have been actively involved in finding the most appropriate solutions. Their wishes have been respected without compromising the quality of the solutions offered by the Government in any way.

As of February 2013, the estimated level of progress of the reconstruction, weighting the evolution of each sector by its relative importance in terms of total investment, is 87%1. Very significant progress has

1 Progress is calculated by weighting the evolution of each sector based on its relative importance in terms of total

investment using the following model: Housing: 50%* projects launched less those completed by the total + 100%* of the projects completed by the total; Healthcare: Physical advance of works by the total; Education: Number of projects completed by the total; Connectivity and Infrastructure: Damaged points operational or partially operational by the total; Public Buildings: Progress from the stage of the projects proportional to the total. General statistics through February 27, 2013 for housing and through January 31, 2013 for the other sectors.

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been made in housing reconstruction2, and notable progress has been reported in the area of public building as compared to the previous measurements.

Summary of the damage caused by the earthquake and tsunami of February 27, 2010 General

An earthquake registering 8.8 on the Richter scale struck at 3:34 a.m. on February 27, 2010. It was the sixth largest earthquake recorded in recent history.

The event left 526 people dead and 25 missing.

It impacted a stretch of land inhabited by over 12,800,000 people, which is equivalent to 75% of the country’s population, in six regions (Valparaíso, the Metropolitan Region, O’Higgins, Maule, Biobío and Araucanía).

The earthquake impacted 5 cities with over 100,000 inhabitants, 45 cities with a population of more than 5,000 and over 900 towns and rural and coastal communities.

Education

Nearly 1,250,000 children were unable to begin the school year in March 2010.

Serious damage was reported in 4,654 schools, which is equivalent to one out of every three schools in the disaster area.

Healthcare

2 In August 2012, housing progress reached 66% with an increase of 28,000 projects launched and 35,000 projects

completed.

79%

99,9%

75%

98,5%

87%

87%

74%

0% 25% 50% 75% 100%

Housing

Connectivity

Public buildings

Healthcare

Education

Reconstruction average

Government period

Physical progress with the reconstruction as at February 27, 2013 [%]

Progress Pending

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A total of 118 hospitals were affected. Forty of them had serious and medium-scale damage and 17 were rendered completely unusable.

The earthquake resulted in the loss of 4,249 hospital beds.

171 operating theaters destroyed, of a total of 442 operating theaters in the affected zone.

A total of 141 hospitals and 66 medical centers were destroyed or damaged.

Public Infrastructure

Nearly 2,500 connectivity points were damaged.

298 bridges were damaged or destroyed (212 of which were public and 86 of which were under concession), including the bridge over the Biobío River and others that were rendered unusable such as the Llacolén and Juan Pablo II Bridges over the Claro River on Route 5 South and the Vespucio Norte overpasses.

Over 1,600 kilometers of roads were damaged.

AMB Airport (Santiago) and 7 aerodromes were damaged or rendered unusable, including Carriel Sur (Concepción) and Maquehue (Temuco).

28 fishing wharfs were rendered unusable.

17% of the urban drinking water systems were interrupted and 748 rural drinking water (RDW) systems were damaged.

41 reservoirs, rainwater collection projects and irrigation canals were damaged or destroyed.

53 ports with damage (flood defenses, port or fishing facilities and docks)

Some type of damage was reported at 149 police stations.

42 town halls were destroyed or suffered severe damage.

The Santiago Justice Center and 15 prisons faced total loss or serious damage.

The Talcahuano Naval Base and the Chilean Naval Shipyards (Astilleros y Maestranzas de la Armada, ASMAR) were destroyed.

Housing and Heritage

370,000 homes were affected. 220,000 were damaged or destroyed and were assigned a repair or reconstruction subsidy.

11 buildings collapsed or suffered damage and had to be demolished, including the gym at Talcahuano, the Alto Arauco II Building, Torre Libertad, Torre O’Higgins and the Alto Río, Hermanos Carrera, Don Tristán and Don Luis buildings.

Widespread damage was caused to buildings with significant heritage value, such as churches and colonial or historical homes including Hacienda el Huique, the Museum of Contemporary Art and Santuario de Santa Rosa de Pelequén, among many others.

Economic Cost

Total losses to the economy are estimated at US$30 billion, which represents 18% of the country’s GDP.

The damage to public infrastructure totaled US$ 10 billion.

Production

ENAP Biobío and the CAP Huachipato Steel Company were completely paralyzed.

Production of 4.3 million tons of cellulose ground to a halt.

93 large and medium-sized companies in the Biobío Region suffered damage.

Employment

Between February and March 2010, 296,000 jobs in the earthquake area were lost, according to data from the National Statistics Institute (Instituto Nacional de Estadísticas, INE).

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Contents

Executive Summary 5

Contents 9

Purpose 10

Strategic Objectives 13

Spheres of Action 13

Progress by Sector 14

HOUSING 14

URBAN REGENERATION AND RECOVERY OF HERITAGE SITES AND PUBLIC SPACES 16

URBAN REGENERATION AND RECOVERY OF HERITAGE SITES AND PUBLIC SPACES 17

URBAN REGENERATION AND RECOVERY OF HERITAGE SITES AND PUBLIC SPACES 18

URBAN REGENERATION AND RECOVERY OF HERITAGE SITES AND PUBLIC SPACES 19

URBAN REGENERATION AND RECOVERY OF HERITAGE SITES AND PUBLIC SPACES 20

URBAN, INTER-URBAN AND INTERNATIONAL CONNECTIVITY 21

PRODUCTIVE AND SOCIAL INFRASTRUCTURE 22

RECOVERY OF PRODUCTION 23

PUBLIC BUILDINGS 24

PUBLIC BUILDINGS 25

HEALTHCARE 26

EDUCATION 28

RECONSTRUCTION FINANCING 29

PROTECTION AGAINST AND PREVENTION OF FUTURE DISASTERS 30

PROTECTION AGAINST AND PREVENTION OF FUTURE DISASTERS 31

Strategic objectives: progress and results 34

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Purpose

On Saturday, February 27, 2010, an earthquake measuring 8.8 on the Richter Scale, followed by a

tsunami, struck an area of Chile extending between the Valparaíso and Araucanía regions. The area

affected is inhabited by almost 13 million people, 75% of the Chilean population. This earthquake

damaged more than 50 cities and 900 towns and rural and coastal communities. More than 200,000

homes were seriously damaged or destroyed. Over four thousand schools were badly damaged, which

meant that more than a million young people were unable to start the school year. In addition, 40

hospitals were damaged, 17 of them to the point where they were rendered unusable, and public

infrastructure was damaged at more than 2,000 points across Chile. The devastating effects of the

earthquake resulted in estimated losses of US$30 billion, equal to 18% of Chile’s GDP.

However, irrespective of the scale of the physical damage caused by the earthquake, the greatest harm

was clearly the loss of 526 Chileans and the disappearance of a further 25 people3.

In response to the earthquake and tsunami of February 27, 2010, President Sebastián Piñera pledged to

rebuild not only the infrastructure that had been damaged and destroyed, but also repair the social fabric

of the nation, with a reconstruction plan that had at its heart the human interests of the Chilean people.

President Sebastián Piñera set out a roadmap that would enable the country to overcome the disaster

and emerge from it strengthened through an inclusive plan of public, private and civic support.

The program was divided into three stages: Immediate Emergency, Winter Emergency and

Reconstruction. The first stage involved supporting families during the painful process of burying their

loved ones, providing help to those who had been injured and searching for the people who were still

missing. It also focused on restoring public order and guaranteeing the supply of basic services such as

drinking water, electricity and food. The Winter Emergency phase was applied between late March and

late July 2010 and consisted of enabling students to return to school, providing shelter and protection

through emergency homes and ensuring access to timely, decent and effective healthcare, the creation of

sixty thousand reconstruction jobs, the repair of highways and bridges and the removal of debris from the

streets. Finally, the Reconstruction Plan has involved providing permanent reconstruction solutions with

the goal that every sector affected by the earthquake will have recovered by March 2014. The challenge

is thus not only achieving physical recovery but also the social recovery of the affected communities.

Six months after the earthquake, on August 27, 2010, the Reconstruction Plan was launched in

Concepción. This plan consisted of carrying out a thorough inventory of the damage and establishing a

program to be followed over the course of the following three and a half years that would ensure that the

physical damage caused by the disaster would be completely repaired by year four. It also aimed to

3 Source: Interior Undersecretary’s Office.

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provide solutions that would improve upon the previous infrastructure and give Chile a sense of pride and

unity in its ability to recover that would serve as an example to the rest of the world.

Within the plan, guiding principles for each area of reconstruction were established. . These principles

relate to the provision of support to those most affected, respect for the dignity and freedom of choice of

the families and their involvement in the process, re-establishing infrastructure to allow production in

Chile to continue at full capacity, the preservation of the heritage of Chile’s original peoples, and working

to ensure that the reconstruction process would have strong moral and social components in addition to

the physical rebuilding.

Housing

The reconstruction of housing focused on preserving the dignity of the families affected, giving them

freedom of choice and respecting their geographical roots. In view of this, 165,000 of the housing units

involved are individual projects, that is, the homes that were destroyed were rebuilt in their original

locations, strengthening local social networks and regenerating the neighborhoods that were damaged in

the earthquake. Innovative mechanisms were used in the granting of subsidies, allowing families to

choose how their homes would be rebuilt, thus empowering them as property owners.

Education

The focus was placed on the 1.25 million children and young people who attended the four thousand plus

educational establishments that were seriously damaged. The challenge was to ensure that all of them

could return to class and that no child would lose the academic year. This objective was successfully

achieved on April 26, 2010, just 45 days after the earthquake. Many of these solutions were temporary,

so an objective of repairing all damaged establishments by 2014 was set. Through a massive public-

private effort, a large part of this work has now been completed.

Healthcare

In healthcare, the reconstruction efforts focused on patients: for the first four months following the

earthquake, the priority was the complete recovery of health care capacity, with 19 field hospitals and 18

operating theaters installed and more than 3 million people receiving vaccinations, particularly against

influenza. Thus six months after the earthquake, more than 90% of lost beds and medical and industrial

equipment had been restored. Subsequently, as a medium and long-term goal, the aim was not only to

ensure health care access for individuals, but also improve access to small, medium and major health

centers, and generate qualitative changes, thereby improving major infrastructure in the affected areas.

Connectivity and Economic Infrastructure

The challenge of rebuilding and recovering the connectivity and economic infrastructure of the over 2,500

points damaged throughout the country was divided into two stages: emergency and reconstruction.

Priority was placed on normalizing the country’s connectivity, public services and economic infrastructure.

The first stage focused on the most urgent objective and almost 100% of the points damaged by the

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earthquake were operational just six months after the disaster. The challenge of providing permanent

long-term solutions such as seafronts, emergency bridges, hydraulic and port projects and urban roadway

repairs, among others, which represented 50 projects, was left for the reconstruction period.

Public and Community Buildings

Chile’s public and community buildings also suffered major damage, from town halls and municipal

buildings to police barracks, military facilities, prisons, gymnasiums, theaters, cemeteries and parks, as

well as cultural heritage buildings that are symbolic of the country’s culture and spirit. Despite the

difficulty associated with the design, engineering and construction of such dissimilar projects, many of

which form part of Chile’s cultural heritage, the goal of repairing and rebuilding all of them was set, with a

view to improving construction standards and preserving the buildings’ architectural styles.

Protection Against and Prevention of Future Disasters

We know we cannot control nature and the earthquake showed us we were not prepared for natural

disasters. Because of this, a key priority for the reconstruction effort was to better prepare the country so

the public is better protected in the event of future natural disasters. A plan was designed to reform and

modernize Chile’s emergency and civil protection systems as well as the existing institutional structure for

disaster management and prevention with the aim of broadly improving Chile’s technical, tactical and

strategic ability to cope with future disasters. A new institutional structure was created by designing an

Emergency Telecommunications Network, improving public warning systems, updating and increasing the

country’s seismic and ocean monitoring equipment, and increasing and improving opportunities to

prepare and educate the population through mass simulation drills. Finally, the safety standards for the

construction of buildings were increased.

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Strategic Objectives

The following strategic objectives were set for reconstruction in the wake of the February 27 earthquake:

Spheres of Action

The reconstruction strategy is divided across the following sectors:

> Housing: Emergency and permanent solutions for the acquisition, construction and repair of

homes.

> Urban regeneration and recovery of heritage sites and public spaces: Urban master plans, cultural

heritage sites and beach recovery.

> Urban, inter-urban and international connectivity: Recovery of road, rail and airport connectivity.

> Social and economic infrastructure: Recovery of ports, fishing wharfs, river banks, irrigation

systems, coastlines and drinking water systems.

> Recovery of Production: Recovery of economic activity.

> Public buildings: Restoration of town halls, municipal buildings, gymnasiums, theaters, swimming

pools, sports facilities, cemeteries, parks, prisons and law courts.

> Healthcare: Immunizations and recovery of hospital beds, medical centers, family health centers

and hospitals.

> Education: Return to classes and reconstruction of elementary schools, high schools and

universities.

> Financing the reconstruction: Mechanisms for providing the funding necessary for the

reconstruction.

> Disaster prevention and protection: Measures to prevent and protect against future disasters.

> Rebuild the country within four years following one of the largest earthquakes in history.

> Ensure that all victims have recovered their homes by 2014.

> Set the conditions for better urban and coastline reconstruction.

> Recover the country’s roadways and economic infrastructure by 2014.

> Reestablish economic activity in the affected area.

> Recover public buildings that had been damaged by 2014.

> Use the earthquake as an opportunity to improve our healthcare centers.

> Ensure that all schools are repaired by 2014.

> Finance the reconstruction by drawing on a wide range of sources and private sector

contributions.

> Increase preparedness for future catastrophes.

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Progress by Sector

HOUSING

DELIVER DURING 2011 ALL OF THE 220,000 SUBSIDIES ESTABLISHED IN THE RECONSTRUCTION PLAN

> Goal: Assign all of the 220,000 subsidies created through the Reconstruction Plan by December 2011.

> Progress: All 222,418 housing solutions established were assigned by December 2011. Of these, 62,000 are currently under construction and over 144,000 have been completed.

Of the subsidies assigned, 43% are for building homes, 8% for purchasing homes and 49% for repairs.

> Entity Responsible: Housing and Urban Development Ministry

BEGIN THE CONSTRUCTION OR REPAIR OF ALL HOMES PRIOR TO WINTER 2013

> Goal: To have started all 220,000 subsidies that form part of the Reconstruction Plan by June 21, 2013.

> Progress: As of February 2013, 15,808 housing solutions, 6,959 new homes and 8,852 repairs have yet to be started.

Of these, 63% are located in the Biobío Region (9,993 solutions), 3% in Maule (421), 23% in the O’Higgins Region (3,629), 8% in the Metropolitan Region (1,222 solutions) and the rest are located in Valparaíso (505) and Araucanía (38).

The monthly pace required to meet the goal involves beginning 3,952 projects – a combination of new homes and repairs - in the next four months in order to finish the process by March 2014. The pace of the past six months has been to start 4,098 projects per month, which allows us to be optimistic regarding the fulfillment of this commitment.

> Entity Responsible: Housing and Urban Development Ministry.

SET UP 75,000 EMERGENCY HOUSING UNITS (2010)

> Goal: Set up 75,000 emergency housing units.

> Progress: During the first half of 2010, 70,489 homes were set up (the original estimate has been decreased). Of these, 45,769 were provided by the Government through the Emergency Committee (31,468 homes), the Solidarity and Social Investment Fund (Fondo Solidario de Inversión Social, FOSIS) (1,954), the municipalities (6,874) and other institutions (5,473). An additional 24,740 were provided by private entities, mainly NGO Un Techo para Chile (22,256 homes). .

87% of these homes (61,350) were in the three most seriously affected regions: 37% in Biobío, 29% in Maule and 21% in O’Higgins. The percentages built in the Metropolitan Region, Valparaíso Region and Araucanía were 7.8%, 2.7% and 2.4%, respectively.

> Entity Responsible: Interior Ministry

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HOUSING

ENSURE THAT ALL OF THE FAMILIES LIVING IN TEMPORARY SETTLEMENTS HAVE EITHER TAKEN POSSESSION OF THEIR PERMANENT HOMES OR SEEN A SIGNIFICANT DEGREE OF PROGRESS BY WINTER 2012

> Goal: To deliver the homes assigned to families who live in settlements and meet the conditions for applying for a housing subsidy.

> Progress: In order to give special priority to the families who are still living in temporary settlements and ensure that they are closed, in August 2011, a Presidential Delegate for Villages and Encampments was appointed.

By the end of January 2013, of the 4,395 families in the initial survey, 1,442 affected families were still living in temporary settlements. 61 of the 107 original temporary settlements had been closed, three in the Valparaíso Region, three in O’Higgins, seven in the Maule Region and 48 in the Biobío Region. The remaining 46 settlements should be closed by October 2013.

In order to avoid having people spend a third winter in settlements, a special rental subsidy program was designed that has been made available to all families in settlements since 2012. It covers the period until they are provided with a permanent home. To date, 1,144 families have benefitted from this alternative, 936 in Biobío, 157 in Maule, 41 in O’Higgins and ten in Valparaíso.

> Entity Responsible: Housing and Urban Development Ministry

IDENTIFY AND WHERE POSSIBLE REGULARIZE THE TITLES OF UP TO 18,000 PROPERTY OWNERS SO THAT THEY CAN BUILD THEIR HOMES ON THEIR OWN LAND

> Goal: To identify and where possible regularize 18,000 titles so that owners may build their homes on their land.

> Progress: Law 20.458 was passed on August 13, 2010. It was to remain in effect for one year and cover the Valparaíso and Araucanía Regions. The purpose of the law was to allow individuals who do not have proper ownership certificates to regularize their situation at no cost, shortening the normal processing time from nearly two and a half years to between six months and a year.

A total of 19,089 cases were identified. Of these, as of February 2013, titles had been granted to 10,363 (54%); 2,250 are being processed (12%) and 6,476 (34%) were dismissed because they failed to meet the legal requirements. It is important to note that the National Assets Ministry conducted all of the assessments and researched all of the titles in order to ensure the validity of each case.

> Entity Responsible: National Assets Ministry

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HOUSING

TAKE EXTRAORDINARY MEASURES TO SPEED UP THE RECONSTRUCTION PROCESS

> Goal: To implement a package of four extraordinary measures to speed up the housing reconstruction processes. They are the Special Urban Densification and Renewal Program for 8,000 subsidies worth between 300 and 500 UF (approx.. US$13,500 – US$23,000); the Portable Subsidy for Victims with Property (between 100 and 350 UF = US$4,500 and US$16,000), which gives the victims freedom of choice; the Assisted Self-Directed Construction Subsidy of 440 UF (approx. US$20,000); decreased paperwork, decentralization of functions and streamlining of processes in order to bring the total reconstruction time down to two and a half months.

> Progress: These measures were agreed to through the signing of a protocol agreement with the Senate Housing Commission on July 20, 2011.

By the end of January 2013, 2,884 of the 3,176 Urban Densification subsidies were active and the rest were canceled because the minimum conditions had not been met. Of the current subsidies, work has begun on 2,840 and the rest will begin soon. Of the 1,036 Self-Directed Construction Subsidies, 127 homes have been completed. In addition, the portability of over 1,534 subsidies of the Constructed Home Acquisition (AVC) subsidies has been processed, allowing them to be transferred to the New Land Construction (Construcción en Nuevos Terrenos, CNT) program, benefitting nearly seven thousand people.

> Entity Responsible: Housing and Urban Development Ministry

URBAN REGENERATION AND RECOVERY OF HERITAGE SITES AND PUBLIC SPACES

REBUILD THE RAINWATER SYSTEMS IN THE CITIES AFFECTED BY THE EARTHQUAKE

> Goal: To restore the rainwater collection systems in the cities affected by the earthquake, which involved 24 contracts to carry out these works.

> Progress: 24 contracts were signed in the Biobío and Metropolitan Regions in June 2011. Of these, 21 correspond to the Biobío Region and three to the Metropolitan Region. The Biobío Region contract that had been pending was completed in December 2011, thus closing out all of the 24 contracts.

> Entity Responsible: Housing and Urban Development Ministry

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URBAN REGENERATION AND RECOVERY OF HERITAGE SITES AND PUBLIC SPACES

FULLY RECOVER ALL TSUNAMI-DESTROYED COASTAL BEACHES IN O’HIGGINS, MAULE, BIOBÍO AND ARAUCANÍA (2010)

> Goal: Make all the beaches clean and usable; equip them all with public restrooms; set up town squares and build lifeguard stations.

> Progress: In December 2010, the cleaning process was finished for nine of the beaches in the four regions (Iloca, Duao, La Pesca, Valle de los Gringos, Playa Norte and Playa Sur in Constitución, Dichato, Coliumo and Llico). Investments in sanitation, equipment, lifeguard stations, town squares, parking lots, signage and access were made.

> Entity Responsible: Interior Ministry

DEVELOP MASTER PLANS FOR TOWNS AFFECTED BY THE EARTHQUAKE AND TSUNAMI

> Goal: Draft master plans for the 137 towns affected by the earthquake and tsunami; including 110 Urban Regeneration Plans (PRU) and 27 Urban Reconstruction Master Plans (PRES). Of the 137 master plans, 25 were for coastal zones and 112 were for inland towns.

> Progress: By October 2011, all of the Urban Reconstruction Master Plans (PRES) and Urban Regeneration Plans (PRU) were complete.

The PRU included a number of inter-sectorial initiatives for future years; 212 of which will be carried out by the Housing and Urban Development Ministry. The initiatives include 100 designs and 112 implementation projects; for a total investment more than US$ 125 million. The PRES included 73 implementation projects, for an approximate investment of US$ 260 million between 2012 and 2014.

In 2012, 200 initiatives (designs and implementation) were processed; 87 were completed (39 PRES and 48 PRU). The remainder was carried over to the 2013 project portfolio. In 2013, 182 projects will be carried out; 63 PRES (12 designs and 51 implementation projects) and 119 PRU (45 designs and 74 implementation projects).

Among the most emblematic recently completed projects are: Avenida Daniel Vera Boulevard in Dichato, repair of Echeverría Street in Constitución, repaving the Larraín Alcalde-Dresden road, the soccer field on Juan Fernández Island, overall improvement of sidewalks in Talca, conservation of city streets and ancillary works in the Santa Clara district of Talcahuano, improvements to Bocalebu Street in Lebu, re-opening of Arturo Prat Plaza de Armas square in Talcahuano and improvement of El Piure Road in Llico.

> Entity Responsible: Housing and Urban Development Ministry

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URBAN REGENERATION AND RECOVERY OF HERITAGE SITES AND PUBLIC SPACES

RECONSTRUCT THE COASTLINE AND VILLAGE ON THE JUAN FERNÁNDEZ ISLANDS

> Goal: Reconstruct the coastline of the Juan Fernández Islands and the Main Street, Larraín Alcalde. Construct all the permanent housing.

> Progress: By the end January of 2013, a pre-feasibility study for remodeling the Cumberland Bay coastline had been completed. The design and construction phases are set to be tendered this year.

The first and second phases of the newly paved main street, Larraín Alcalde, were ready for use in June 2011 and 2012, respectively.

Also in 2011, repairs were made to the village’s town square.

The established target was 45 permanent homes (5 on their own land, 22 in the "Picaflor Rojo” project and 19 in the “El Escocés” project). As of February 2013, the “Picaflor Rojo” and “El Escocés” projects, as well as the five homes on their own land were complete and have been delivered to their owners; thus completing housing reconstruction on the Juan Fernández islands.

> Entity Responsible: Housing and Urban Development Ministry and Public Works Ministry

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URBAN REGENERATION AND RECOVERY OF HERITAGE SITES AND PUBLIC SPACES

INCLUDE TOCOPILLA IN THE RECONSTRUCTION PLAN

> Goal: Build and repair housing in the Huella Tres Puntas sector and historic town center of Tocopilla; and provide housing solutions for the 663 people who have been living in shared accommodation since the 2007 Tocopilla earthquake.

> Progress: According to initial estimates, the Tocopilla earthquake of November 14, 2007 completely destroyed or damaged 3,626 family homes. As of March 2010, 1,901 families had still not been provided with a housing solution. By December 2011, homes had been provided to all of those families.

In 2010, 139 Fondo Solidario de Vivienda (Housing Solidarity Fund) subsidies were provided for housing in the Huella Tres Puntas sector. As of February 2013, the project is underway and 86% complete.

The earthquake affected 1,624 families in Tocopilla’s historical center. As of March 2010, only 36% of those families had a finished home. By February 2013, 1,390 homes had been finished, meaning 86% of those affected had a home. Furthermore, 84 homes are under construction and preliminary work is underway for 90 additional homes. The remaining 60 subsidies were deemed inapplicable.

There were a total of 1,610 families in shared housing. President Piñera’s Government pledged to provide subsidies so each of the 663 families in shared housing could have their own home. The target was reached–with 555 and 108 subsidies provided in 2010 and 2011, respectively. The subsidies were divided among the Alto Covadonga, El Teniente and Prefectura projects. Phases 1 and 2 of the Alto Covadonga project are 83% and 41% complete. The Prefectura project is 67% complete and all of the housing units in the El Teniente project have been awarded to residents.

> Entity Responsible: Housing and Urban Development Ministry

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URBAN REGENERATION AND RECOVERY OF HERITAGE SITES AND PUBLIC SPACES

REPAIR HERITAGE BUILDINGS

> Goal: Repair the 768 damaged public and privately- owned heritage buildings in the affected cities.

> Progress: According to the Public Works Ministry’s national survey of damaged buildings, 768 heritage buildings were damaged: 104 in Valparaíso, 166 in O’Higgins, 165 in Maule, 169 in Biobío, 40 in Araucanía and 124 in the Metropolitan region.

In response, the National Council for Culture and the Arts (Consejo de la Cultura y las Artes, CNCA) and the Undersecretary of Regional Development and Administration (SUBDERE) developed programs to recover the damaged heritage sites. The National Council for Culture and the Arts has held three versions of the Programa de Apoyo a la Recuperación del Patrimonio Material (Material Heritage Recovery Support Program- 2010, 2011 and 2012). The competition funds up to 50% of projects, up to a cap amount (100 million Chilean pesos in 2010 and 120 million Chilean pesos in 2011 and 2012). Between 2010 and 2011, the program co-funded 61 projects. In 2012, the call for projects resulted in an additional 31 projects. As of the end of January 2013, 40 projects were complete, 21 were underway and 31 were set to begin soon. In total, more than US$ 38 million in public and private funds has been invested in the projects. All of the unfinished projects from the 2010 and 2011 calls will be completed before the end of 2013. The most emblematic repairs include: the Museum of Contemporary Art, the Severín Library in Valparaíso, the Santa Rosa de Pelequén Sanctuary and the Parroquial Church in Constitución. The Undersecretary of Regional Development and Administration has allotted funds to restore municipal and heritage infrastructure through three programs: the Local Infrastructure Recovery Provision for the Central Southern Zone, the Heritage Development Program and the City Recovery Fund. The Local Infrastructure Recovery Provision for the Central Southern Zone provides funding to recover public infrastructure and heritage properties owned by non-profit private parties. More than US$ 14 million will be invested in 10 projects; 3 of which are complete, 6 are underway and 1 is in the process of being tendered. Hacienda El Huique in O’Higgins and Palacio Cousiño in Santiago are among the 10 projects. The Heritage Development program includes 20 projects and total investment of US$ 15 million. Three of the projects are complete, 13 are under way, and 4 are set to begin in 2013. The most significant results: restoration of the San Pedro de Alcántara Church and Pompeya Theater in O’Higgins and Valparaíso, respectively; and completion of the first phase at Casa Colorada in Santiago. All of the program's projects are scheduled to be finished before the end of 2013. Finally, the City Recovery Fund, which aims to repair public infrastructure, contributed funds to repairing the La Rioja and Carrasco Palaces in Viña del Mar. These projects are well underway and scheduled to be finished before the end of 2013.

> Entity responsible: The National Council for Culture and the Arts and the Interior Ministry

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URBAN, INTER-URBAN AND INTERNATIONAL CONNECTIVITY

REPAIR CITY ROADS IN THE CITIES AFFECTED BY THE EARTHQUAKE

> Target: Recover 100 km of earthquake-damaged city roads by 2011. > Progress: In 2010, 32 km of roads (of the 35 km target) were repaired.

During 2011, repairs on all 100 km were complete. > Entity responsible: Housing and Urban Development Ministry

BUILD OR REPAIR ROADS AND BRIDGES

> Goal: Recover infrastructure by rebuilding and repairing roads and bridges.

> Progress: Connectivity was restored to 100% of the earthquake-damaged points. There were a total of 7174 road works, road and bridge projects; 167 in Biobío, 186 in Maule, 142 in O’Higgins, 57 in Valparaíso, 94 in Araucanía and 69 in the Metropolitan Region. Since some of the solutions are temporary, reconstruction of the Chiguayante-Hualqui route and work on permanent infrastructure remains underway for 1 road and 13 bridges. The permanent bridge over the Claro River on the Pan-American Highway is open to the public, thus completing the reconstruction for which concessionaires are responsible. The Botalcura, Pellines, El Parrón, La Laguna and San Camilo bridges in Maule are also open to the public. The Las Toscas and Coínco bridges in O’Higgins and El Bar in Biobío are also complete. The Conumo bridge in Biobío is scheduled to open in March 2013. The first phase (west side) of the Bicentenario bridge, which crosses the Biobío river, will be complete in December 2013; and the second phase (east side) will be ready in October 2014.

> Entity responsible: Public Works Ministry

FULLY RECOVER THE DAMAGED AIRPORT NETWORK

> Goal: Fully recover the damaged airport network.

> Progress: Eight aerodromes and airports have been recovered; five of which are in Biobío (including: Carriel Sur and Aeródromo María Dolores de los Ángeles) and one is in the Metropolitan Region (Arturo Merino Benítez International Airport).

> Entity responsible: Public Works Ministry

4 The differences between the total number of projects and the sum of the regional projects is attributable to

projects in los Ríos and inter-regional projects.

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PRODUCTIVE AND SOCIAL INFRASTRUCTURE

REPAIR DAMAGED RAILWAY INFRASTRUCTURE

> Goal: Fully recover the damaged railway network.

> Progress: Repairs included bridges, tracks, electricity, signage and train stations. Some of the most emblematic repairs were made to the Talca-Constitución line in November 2010.

By the end of January 2013, 100% of the rail system was operational. The fiber optics repairs and outstanding bridges are now complete. Additionally, repairs to Talca and Curicó stations, which were not in the original plans, are being considered.

> Entity responsible: Transport and Telecommunications Ministry

REPAIR ALL THE EARTHQUAKE- AND/OR TSUNAMI-AFFECTED PORT INFRASTRUCTURE FOR SMALL-SCALE FISHING , COASTLINE PROTECTION AND PORT CONNECTIVITY INFRASTRUCTURE

> Goal: Repair damage to port infrastructure, small-scale fishing and coastline protection.

> Progress: By December 2011, 100% of the damaged hydraulic facility points were reestablished; 99 points were repaired, 53 of which were port works.

Moreover, 6 large hydro projects and 17 port and coastline works are underway. They will permanently replace the temporary solutions currently in place. The most emblematic projects include nine complete, permanent projects, including: the Río Tirúa terminal repair, the Lo Rojas fishing dock in Coronel, and the wharfs in Lota Bajo, Llico and Tumbes. The first phase of rebuilding the Dichato waterfront was also recently finished. The planned improvements to the La Poza sector of Talcahuano are 70% complete and scheduled to be finished in June 2013.

> Entity responsible: Public Works Ministry

REPAIR ALL THE RURAL DRINKING WATER SYSTEMS DAMAGED BY THE EARTHQUAKE

> Goal: To install 422 Rural Drinking Water Systems

> Progress: In December 2010, the repairs were completed on 422 rural drinking water systems which had suffered 748 points of damage. Of these, 39 were in the Metropolitan Region; 25 in Valparaiso; 85 in O’Higgins; 92 in Maule; 121 in Biobío and 60 in the Araucanía Region.

> Entity Responsible: Public Works Ministry

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RECOVERY OF PRODUCTION

IMPLEMENT THE “VOLVAMOS A LA MAR” (LET’S GET BACK TO THE SEA) PROGRAM TO SUPPORT THROUGH GRANTS AND LOANS THE PURCHASE AND REPAIR OF BOATS

> Goal: To implement the “Volvamos a la Mar” program.

> Progress: The program is aimed at the co-financing, replacement or repair of boats as well as the replacement of motors and diving or fishing equipment that was lost or damaged as a result of the tsunami and earthquake.

It was officially implemented and completed in March 2011. It benefitted a total of 1,100 people, who received subsidies totaling 3.489 billion Chilean pesos.

> Entity Responsible: Economy Ministry

PROGRAM OF SUPPORT FOR BUSINESSES AFFECTED BY THE EARTHQUAKE

> Goal: To provide funds to help 42 thousand micro-, small- and medium-sized enterprises.

> Progress: Subsidies were provided for the repair of fixed assets, machinery and equipment by the Technical Cooperation Service (Servicio de Cooperación

Técnica, SERCOTEC). A reinsurance fund was created by the Chilean Economic Development Agency (Corporación de Fomento de la Producción, CORFO) to guarantee investment loans and programs were put in place to promote development of Sociedades de Garantía Recíproca (SGR), channeling more than US$ 450 million in aid.

> Entity Responsible: Economy Ministry

CREATE 60,000 JOBS IN DISASTER HIT AREAS

> Goal: The creation of 60 thousand jobs.

> Progress: 65,000 jobs were created via two programs: 20,000 emergency jobs were provided in reconstruction, led mainly by the Chilean Army Work

Corps (Cuerpo Militar del Trabajo, CMT), over a period of six months, and 45,000 bonus subsidies were awarded for contracting, consistent with 40% of the minimum salary for four months, extendable for up to another four months.

> Entity Responsible: Employment Ministry

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PUBLIC BUILDINGS

BUILD OR REPAIR BUILDINGS BELONGING TO MUNICIPALITIES, THE INVESTIGATIONS POLICE AND CARABINEROS (UNIFORMED POLICE)

> Goal: To repair town halls, municipal buildings and police stations damaged by the earthquake.

> Progress: There are 42 seriously damaged town halls. Of these ten have been completely repaired (Ñiquén, Coínco, Peralillo, Angol, Catemu, El Carmen, Lampa, Río Claro, San Clemente and Pencahue); ten are in progress; work will soon begin on 14 buildings and another eight will soon enter into the tender process. Average progress is 42%.

In the area of municipal buildings, community facilities and local infrastructure, there are 565 projects (repairs to municipal buildings, theaters, gymnasiums, cemeteries, parks, swimming pools, etc.) with a progress of 77%.

The 149 damaged buildings of the Carabineros (Uniformed Police) and the Investigations Police were divided between those with minor damage and those with medium or serious damage. The 101 buildings with minor damage have already been repaired, whilst the 48 with medium or serious damage are currently in different stages of repair and will be ready in 2014: 18 are now opened; three are in the start-up phase; seven are in progress and the others are in less advanced phases.

> Entity Responsible: Interior Ministry

REBUILD OR REPAIR PRISONS AND COURTS OF JUSTICE AFFECTED BY THE EARTHQUAKE

> Goal: To repair prisons in Chillán, El Manzano of Concepción, Coronel, Mulchén, Parral and the Courts of Justice in Santiago.

> Progress: The target includes four repairs in the Biobío region, one in the Maule and another in the Metropolitan Region. Three works are already complete.

The repairs completed in the Biobío region correspond to the prison of Chillán, which involved various repair works and resuming operations at the prison, as well as repairs to the privately-run El Manzano prison in Concepción, which was opened on November 18

th 2011 and is now

operating normally. Also due to commence shortly are restoration projects for the prisons in Mulchén and Coronel, which will be completed before March 2014.

In the Maule region, work is expected to begin on the repair of Parral prison in May 2013.

Repairs to the Courts of Justice in Santiago were completed in July 2011.

> Entity Responsible: Justice Ministry and Public Works Ministry

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PUBLIC BUILDINGS

REPAIR MILITARY INFRASTRUCTURE DAMAGED BY THE EARTHQUAKE AND SUBSEQUENT TSUNAMI

> Goal: To repair infrastructure belonging to the Armed Forces.

> Progress: Works are underway on 105 projects to be completed by the end of 2013. Of these, 98 involve the repair or rebuilding of: military units and facilities; housing and defense industry infrastructure in the six regions affected (Valparaíso, O’Higgins, Maule, Biobío, Araucanía and Metropolitan). These projects are 71% complete and services at military stations and facilities have almost fully resumed. .

The seven remaining projects correspond to the recovery of the Astilleros y Maestranzas de la Armada – ASMAR (naval shipbuilding and repair company) in Talcahuano, involving the rebuilding of paving works, machinery, instruments and other items. These projects are currently underway, with a physical progress to date of 69%, in particular the recovery of a large part of the operational capacities of Talcahuano Naval Base. Works are expected to be complete by the end of 2013.

> Entity Responsible: Ministry of Defense

DEMOLISH BUILDINGS DAMAGED BY THE EARTHQUAKE

> Goal: To demolish buildings that pose a risk to the community.

> Progress: Eleven buildings posing a threat to the community have been demolished. Of these, three were in Santiago and eight in Concepción.

> In Santiago, the Don Tristán and Don Luis buildings were demolished, whilst technical studies on the Hermanos Carrera de Maipú building confirmed the need to demolish, due to commence within the first semester of 2013. In Biobío, the Talcahuano gymnasium was demolished, along with the Alto Río, Alto Arauco II, Torre Libertad, Torre O’Higgins de Concepción, Torre A of the Plaza del Río and Torre Rodrigo de Triana, with the Centro Mayor building remaining, which is in the process of demolition and is expected to finish in March 2013.

> Entity Responsible: Public Works Ministry

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HEALTHCARE

RECOVER HOSPITAL INFRASTRUCTURE DAMAGED BY THE EARTHQUAKE

> Goal: To restore hospitals that suffered damage in the earthquake zones.

> Progress: Of the 135 hospitals in the earthquake-affected zone, minor repairs have been carried out on 110: equivalent to 81%.

As for the hospitals that suffered severe damage, nine of them had to be replaced under the accelerated construction program. Those nine hospitals have already been opened.

The seven hospitals that required major repairs included the National Cancer Institute (Instituto Nacional del Cáncer). Of these seven, progress levels are as follows:

­ Temuco Hospital: The 10 operating theaters, the Center for Therapeutic Diagnostics (Centro de Diagnóstico Terapéutico) and the 120 hospital beds have now been replaced.

­ Dr. Mauricio Heyermann Torres Hospital in Angol: Repair works are complete and the hospital is operational.

­ Dr. Guillermo Grant Benavente Regional Hospital in Concepción: Phase I represents 70% of the total project and included repairing the Emergency Department, which was finished in January 2013. Phase II is being tendered and will be finished in November 2013.

­ San Borja Arriarán Hospital: Works on the complex are fully underway and it is expected to be opened by the end of 2013.

­ National Cancer Institute: The replacement of operating theaters and doctors’ offices was completed in September 2012.

­ San Carlos Hospital: Works include the replacement of operating theaters, doctors’ offices, waiting rooms and resuscitation rooms, all of which will be finished by the end of 2013. 2013.

­ Hospital Clínico Herminda Martin in Chillán: Repairs to the hospital’s surgery department are underway, and expected to be finished by January 2014.

­ Curanilahue Hospital: Structural studies of the central tower of the hospital are complete, requiring 11,000 m2 of repairs. Works are due to start in during the first trimester of 2013. It is important to stress that 100% of the medical and industrial equipment is installed and operational.

­ To date, works are complete on five hospitals (Los Andes, Santa Cruz, Las Higueras, Corral and Temuco), returning 1,587 beds to the system. Furthermore, repairs and construction work are underway at five other hospitals (Rancagua, Talca, Cañete, Osorno and Los Ángeles), and is 77% complete. This will add another 2,183 beds to the affected areas and it is expected to be ready by the beginning of 2014.

> Entity Responsible: Health Ministry

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HEALTHCARE

NORMALIZE AND INAUGURATE HOSPITALS IN THE ACCELERATED CONSTRUCTION PROGRAM IN 2011

> Goal: To finish construction works, replacement and normalization of the nine hospitals promised under the accelerated construction program.

> Progress: The nine hospitals of San Antonio de Putaendo, Parral, Talca (external and internal), Curicó, Cauquenes, Hualañé, Chillán and Félix Bulnes are now open, returning 763 beds to the health system.

It is important to stress that the Hualañé hospital was financed thanks to the Japanese Government’s donation of US$ 2.5 million.

> > Entity Responsible: Health Ministry

RESTORE EARTHQUAKE DAMAGED CLINICS AND HEALTH CENTERS

> Goal: To restore dozens of health centers and clinics destroyed by the earthquake.

> Progress: To date, 207 earthquake-damaged rural health clinics, health centers and primary healthcare centers have been repaired and built in the Valparaíso, O´Higgins, Maule, Biobío, Araucanía and Metropolitan regions.

> Entity Responsible: Health Ministry

REPLACE LOST HOSPITAL BEDS

> Goal: To replace the 4,249 hospital beds lost as a result of earthquake.

> Progress: Work was divided into two phases: First came a provisional solution that consisted in the installation of 19 field hospitals in the earthquake zones which provided 24 critical beds, 567 basic beds and 18 operating theaters between February and June 2010, thanks to the support of the embassies of Argentina, Brazil, Cuba, the United States, Finland, Italy, Russia, the Japanese Red Cross, Norway and the Chilean Army and Air Force.

The definitive solution followed later with repairs, transfers and the construction of nine hospitals as part of the accelerated construction program. The original estimate of the number of beds lost was adjusted down, arriving at a total of 3,822, which have since been 100% recovered.

> Entity Responsible: Health Ministry

POST-EARTHQUAKE VACCINATION CAMPAIGN

> > Goal: To protect the population in disaster-hit areas through vaccination against influenza, hepatitis A and pneumococcus.

> > Progress: Mobile vaccination centers were put in place to access disaster-hit areas, especially for vaccination against influenza. Vaccinations against hepatitis A and pneumococcus were made available through every temporary settlement and shelter.

> Furthermore, a vaccination campaign against AH1N1 was implemented. Throughout 2010 a total of 3.1 million people received vaccinations, in particular 79,000 pregnant women and 651,000 school children aged between two and fourteen years old.

> Entity Responsible: Health Ministry

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EDUCATION

ENSURE THAT ALL CHILDREN WHO HAVE NOT BEEN ABLE TO RETURN TO CLASSES DUE TO THEIR SCHOOLS’ DESTRUCTION OR DAMAGE CAN DO SO BEFORE APRIL 26, 2010

> Goal: ensure that all children who have not been able to return to classes due to their schools’ destruction or damage can do so before April 26, 2010.

> Progress: Resources were transferred directly to municipalities and communities to repair educational establishments which had not suffered structural damage. By building modular schools and setting up temporary classrooms in reconditioned buses, social meeting places, police headquarters and precincts, 1.25 million students were able to return to classes on April 26, 2010, less than 45 days after the earthquake.

> Entity Responsible: Education Ministry

REBUILD OR REPAIR 100% OF THE EDUCATIONAL ESTABLISHMENTS DESTROYED BY THE EARTHQUAKE BEFORE THE GOVERNMENT TERM ENDS

> Goal: 100% of educational establishments built or repaired.

> Progress: As of January 31, 2013, 4,654 educational establishments reported damage due to the earthquake. To date, a total of 3,923 establishments (84%) have received public or private support.

With regards to public support, the Education Ministry has provided funds for 1,983 establishments through 2,573 repair projects. Of these, 104 projects have resigned or have been solved in another manner, with 2,469 projects remaining, of which 2,150 have been finished thus achieving 87% progress. These funds will benefit over 932,000 students through 15 support programs.

> Entity Responsible: Education Ministry

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RECONSTRUCTION FINANCING

OBTAIN FUNDS TO FINANCE RECONSTRUCTION OF THE COUNTRY

> Goal: Have the necessary funds available to finance reconstruction.

> Progress: On July 31, 2010, Law 20,455 was published, generating the following tax modifications in order to finance the reconstruction effort: a temporary increase of first category tax; a new tax regime to exempt SMEs from tax on reinvested profits; allocation of resources from the Copper Reserve Law to help finance reconstruction; permanent decrease of stamp tax by 50%; modification of taxes on Agreed Deposits established in Decree Law N° 3,500 on Pension System; modifications of tobacco taxes and modifications to DFL N° 2, in Housing Plan.

> Entity Responsible: Finance Ministry

ENCOURAGE THE PARTICIPATION OF THE PRIVATE SECTOR TO FINANCE THE NATIONAL RECONSTRUCTION FUND

> Goal: Finance part of the reconstruction effort through the National Reconstruction Fund.

> > Progress: Law 20,444, published on May 28, 2010, creates the National Reconstruction Fund and establishes tax incentive mechanisms on donations made in the event of a disaster.

> On February 8, 2012, Law 20,565 was published, modifying Laws 20,444 and 19,885, better known as the “Ley Cubillos” (“Cubillos Law”), which seeks to encourage donations and simplify their processes.

> Over 33 million dollars in donations have been accredited to date for specific works and the National Reconstruction Fund. Approximately 50 million dollars in donations have been committed and are being processed.

> Entity Responsible: Interior Ministry and Finance Ministry

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PROTECTION AGAINST AND PREVENTION OF FUTURE DISASTERS

CREATE THE NATIONAL EMERGENCY AGENCY WITH PREVENTION AND EARLY WARNING DUTIES AND ASSISSTANCE FOR VICTIMS OF NATURAL DISASTERS

> Goal: Create the National Emergency Agency, with funding, institutional structure and defined objectives.

> Progress: On March 22, 2011, a bill was sent to Congress to establish the Civil Protection and National Emergency System (Sistema Nacional de Emergencia y Protección Civil) and create the National Agency of Civil Protection (Agencia Nacional de Protección Civil) (Bulletin 7550-06). By February 2013, the project is undergoing its first constitutional process in the House of Representatives with utmost urgency, having passed through the Interior, Defense and Finance Government Committee. The project was generally approved and is in the Interior Government Committee.

> Entity Responsible: Interior and Public Security Ministry

IMPROVE PUBLIC EMERGENCY WARNING SYSTEMS

> Goal: Implement mass warning systems through mobile phones and other mass media.

> Progress: The Emergency Warning System (Sistema de Alerta de Emergencia - SAE) is currently in the testing phase. It consists of early warning messages sent to the population, targeting specific geographical areas, organizations and communities. The messages are sent as close to real time as feasible, in several languages and can be transmitted even when networks are overloaded due to congestion. Furthermore, the SAE seal for mobile phones will be launched soon.

Similarly, 49 sirens have already been installed along the coastline with a total of 90 expected by February 2014. In addition, the ABC system (Ambulance/Firefighters/Police - Ambulancia/Bomberos/Carabineros) has been implemented along the entire coast and has already been tested during simulations. Furthermore, an agreement with ARCHI was established in which an existing networking system will allow alerts to be broadcast in real time to radio announcers, with the possibility of broadening the agreement to non ARCHI radios under analysis.

> Entity Responsible: National Emergency Office (Oficina Nacional de Emergencia - ONEMI), Interior and Public Security Ministry, and Telecommunications and Transport Ministry

IMPROVE OPERATIONS AT REGIONAL BRANCHES OF THE NATIONAL EMERGENCY OFFICE (OFICINA NACIONAL DE EMERGENCIA - ONEMI)

> Goal: Implement operational improvements in Regional Branches

> Progress: In June 2010, the 24/7 modality was implemented at the Regional Early Warning Center (Centro de Alerta Temprana Regional - CAT) in its 15 ONEMI Branches. The number of personnel per region was increased from 4 to 11 persons, with priority for radio announcers who worked shifts, which is expected to further increase to 15 per region.

> Back-up energy systems were installed, which were nonexistent in February 2010, with the ability to provide 48 hours of autonomy in all regional offices, a timeframe set to be increased to 96 hours by February 2014. Furthermore, extra communication systems were implemented in order to guarantee communications between Regional Branches.

> Entity Responsible: Interior and Public Security Ministry

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PROTECTION AGAINST AND PREVENTION OF FUTURE DISASTERS

IMPLEMENT NEW EMERGENCY TELECOMMUNICATIONS NETWORK SERVICE

> Goal: Implement the New Emergency Telecommunications Network.

> Progress: As a part of the plan to strengthen Emergency Telecommunications, a HF/ALE

5 Radio Communication System is fully

functional in all regional branches, and operates backed-up by the Army Radio Communications Network, through an agreement signed by the ONEMI.

With the aim of further strengthening existing networks, the integration of ONEMI into the Police P25 System by October 2013 is being contemplated, consisting of an interoperable telecommunications network between the emergency services, with the same kind of coverage as the Police Quadrant Plan.

Additionally, a satellite telecommunications system has been created, with telephones and internet in each regional branch, as well as the distribution of 82 satellite telephones to national and regional authorities.

Periodic testing of the operational efficiency of all communication channels has been systematized, on a regional and national level, with approximately 40,000 annual tests.

> Entity Responsible: National Emergency Office (Oficina Nacional de Emergencia- ONEMI), Interior and Public Security Ministry, Telecommunications and Transport Ministry

ESTABLISH A PROTOCOL ALLOWING THE ARMED FORCES TO PARTICIPATE IN EMERGENCIES

> Goal: Include specific reference to the participation of the Armed Forces in the legal statute of the new emergency institutional structure.

> Progress: On March 22, 2011, a bill was sent to Congress establishing the Civil Protection and National Emergency System (Sistema Nacional de Emergencia y Protección Civil), and the National Civil Protection Agency (Agencia Nacional de Protección Civil) (Bulletin 7550-06) was created. A participation protocol for the Armed Forces in the event of an emergency was included.

As of February 2013, the draft bill is being debated with utmost urgency in the House of Representatives and is at the first stage of the constitutional process.

> Entity Responsible: Interior, Defense and Public Security Ministries

5 HF/ALE: High Frequency/Automatic Link Establishment, the global standard for initiating and maintaining high

frequency communications, with the selection of frequency done automatically

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PROTECTION AGAINST AND PREVENTION OF FUTURE DISASTERS

MODIFY SEISMIC REGULATIONS TO CONFRONT FUTURE DISASTERS MORE EFFECTIVELY

> Goal: Modification of seismic regulations for reinforced concrete and seismic design of buildings.

> Progress: In order to increase the level of standards, the seismic regulations for the use reinforced concrete (NCh430) and seismic design of buildings (NCh33) were modified in February 2011.

> After several months, it became evident that it was necessary to adjust some these modifications. The Committee of Experts met once again to analyze what modifications needed to be made to the regulations, generating two decrees with higher standards than the ones in existence at the time of the earthquake. Said regulations came into effect December 14, 2011.

> Entity Responsible: Housing and Urban Development Ministry

IMPROVE TECHNICAL CAPABILITIES OF SHOA

> Goal: Improve the technical capabilities of the Navy Oceanographic and Hydrographic Service (Servicio Hidrográfico y Oceanográfico de la Armada -SHOA) by perfecting radio and video communications systems, improving information technology and increasing the number of sea level monitoring stations along the coastline.

> Progress: highlights include: progress made establishing satellite lines to back up communications; improvements to the internal radio communications system between the SHOA and ONEMI; a video system was implemented to visually verify the coastline, with image feeds from three ports. A study is currently underway to analyze the feasibility of installing cameras at every sea level measuring station. Furthermore, the number of sea level monitoring stations has increased from 17 to 35 stations.

> With regards to the sharing and dissemination of technical knowledge: several seminars have been organized, there has been pre-modeling of tsunami events to feed a system to back-up decision making, and a tsunami research group was created, among others.

> In terms of support for the community, a new application was implemented that reduces the time gap between evaluation of the earthquake and the broadcasting of information.

> Entity Responsible: Defense Ministry

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PROTECTION AGAINST AND PREVENTION OF FUTURE DISASTERS

IMPROVE COORDINATION BETWEEN ONEMI, SHOA AND RELEVANT INSTITUTIONS

> Goal: Improve coordination between the institutions involved in the emergency system by signing operation protocols.

> Progress: On July 13, 2012, the third version of the operation and communication protocol was signed between ONEMI and SHOA, which establishes responsibilities, determines procedures for broadcasting information and agrees upon mitigation procedures for earthquakes that strike coastlines. One significant measure is that in cases of coastal earthquakes registering VII or more on the Mercalli scale, a “Preventive Evacuation” can be established even if the ONEMI has not received the initial evaluation of the event from the National Tsunami Alarm System (Sistema Nacional de Alarma de Maremotos – SNAM).

In turn, through an internal Service Order, Shift Supervisors have been authorized to carry out the protocols in the case of coastal earthquakes registering VII or more on the Mercalli scale.

Furthermore, in 2011 and 2012, the ONEMI made official coordination protocols with SERNAGEOMIN, the Chilean Meteorological Directorate (Dirección Meteorológica de Chile), the Public Works Ministry’s General Directorate of Waters (Dirección General de Aguas del Ministerio de Obras Públicas), the National Forestry Corporation (CONAF) and the Chilean Army.

Entity Responsible: Interior and Public Security Ministry

PREPARE THE POPULATION FOR TSUNAMIS THROUGH DRILLS

> Goal: Permanently carry out evacuation drills in risk areas.

> Progress: Launching and execution of activities as part of the ONEMI “Programa Chile Preparado” (Chile Prepared Program), which carries out evacuation drills for various emergencies such as earthquakes, tsunamis, volcanic eruptions, toxic spills, among others.

To date, 21 drills have taken place with over 3 million people participating on a national level. Several large scale drills were successfully executed: more than 500,000 people in 17 communities participated in a drill in Valparaiso; another drill in Tarapacá was held at night with close to 200,000 participants; and yet another drill was held in the Metropolitan Region with the participation of more than 1,200,000 students from 2,500 schools. In turn, in October 2012, the first Chile-Peru bi-national drill was successfully carried out. 71,000 Chileans participated in the Arica and Parinacota Regions while 80,000 participated in the Tacna Region in Peru.

> Entity Responsible: Interior and Public Security Ministry

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Strategic objectives: progress and results

Four years to rebuild the country after one of the most powerful earthquakes in history

By the end of January 2013, the estimated degree of progress, considering the evolution of each sector by its relative weight in the total investment, is 87%, with particularly significant progress in housing6 and public works construction with regards to the previous measurements.

PHYSICAL PROGRESS OF RECONSTRUCTION AGAINST GOVERNMENT PERIOD7

If we consider the progress made over the past year, it can be seen that in general terms the deadlines have been met, with the progress rate increasing from 61% in August 2011 to 68% in February 2012, 79 percent in August 2012 and 87 percent at this time. This enormous effort, not only by public institutions but by civic society as well, is being recognized on a national and international level, catapulting our country into the limelight as an example of recuperation capacity.

6 In August 2012, housing progress was at 66%. Works underway increased by 28,000 and finished works by 35,000.

7 Source: Figures supplied by the relevant Ministries.

Calculation of progress per sector has been established in the following way: Housing: 50%* of works underway minus finished works out of the total + 100%* of works finished of the total; Road and productive infrastructure: damaged areas that are operational or partially operational out of the total; Public infrastructure: progress of phases of works in proportion to total; Health: physical progress of works out of total; Education: Number of finished projects out of total.

79%

99,9%

75%

98,5%

87%

87%

74%

0% 25% 50% 75% 100%

Housing

Connectivity

Public buildings

Healthcare

Education

Reconstruction average

Government period

Physical progress with the reconstruction as at February 27, 2013 [%]

Progress Pending

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COMPARATIVE PHYSICAL PROGRESS OF RECONSTRUCTION8

8 Source: Figures supplied by the relevant Ministries.

The calculation of progress by sectors is established in the following way: Housing: 50%*of works underway minus finished works out of the total + 100%* of finished works of the total; Road and productive infrastructure: damaged areas that are operational or partially operational out of the total; Public infrastructure: progress of phases of works in proportion to total; Health: physical progress of works out of total; Education: Number of finished projects out of total.

61%

68%

79%

87%

35%

47%

60%

74%

0% 25% 50% 75% 100%

Agosto 2011

Febrero 2012

Agosto 2012

Febrero 2013

Comparative physical progress of reconstruction [%]

Avance reconstrucción Período de gobierno

37%

99,8%

31%

95%

70%

47%

58%

73%

66%

63%

85%

79%

99,9%

75%

98,5%

87%

20% 30% 40% 50% 60% 70% 80% 90% 100%

Vivienda

Conectividad

Edificación Pública

Salud

Educación

Comparative physical progress of the reconstruction by sector (%)

Agosto 2011 Febrero 2012 Agosto 2012 Febrero 2013

August 2011

February 2012

August 2012

February 2013

Reconstruction progress Government period

Housing

Connectivity

Public buildings

Healthcare

Education

August 2011 February 2012 February 2013 August 2012

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Progress since the previous official report has been focused on Housing, with 35,000 works already

delivered, which is equivalent to building or repairing housing for 140,000 people, and equivalent to the

challenge of building or repairing all the housing in a city the size of Curicó, in just six months, scattered

over an 800 km. stretch of land while allowing the families to decide where and how they want to live.

Finally, progress by region is on the whole proceeding as planned.

SUMMARY OF RECONSTRUCTION PROGRESS BY AREA AND REGION9

Reconstruction Sector

Unit10

Projects11

End date

VA RM OH ML BB AU NR12 Total Progress

13

Housing VV 13,715 32,221 23,483 49,541 83,026 4,624 206,610 79% 2014

Road and production infrastructure

PT 202 199 283 381 403 227 804 2,499 99.9% 2014

Public buildings ED 75 136 91 130 242 55 149 878 75% 2014

Healthcare RP 36 85 39 56 104 32 342 98.5% 2014

Education RP 265 654 317 462 637 134 2,46914 87% 2014

Average 87% 2014

9 Source: preliminary estimates based on the information sent by the Ministries.

10 Units of measurement: VV: Works underway and/or finished; PT: Damaged areas; ED: Public construction; RP:

Establishments under repair, with the possibility of there being more than one in each establishment. 11

VA: Valparaíso, RM: Metropolitan, OH: O’Higgins, ML: Maule, BB: Biobío, AU: Araucanía, NR: no region 12

NR: Corresponds to projects in the Los Ríos region or inter-regional projects. 13

Progress has been calculated as follows:

Housing: 50%* projects launched less those completed by the total + 100%* of the projects completed by the total

Roads and Productive Infrastructure: Damaged points operational or partially operational by the total

Public Buildings: Progress from the stage of the projects proportional to the total

Healthcare: Physical advance of works by the total

Education: Number of projects completed by the total (there are schools with more than one project). 14

Corresponds to the total number of repair projects assigned to the 1,983 damaged educational establishments which have been addressed with Education Ministry resources.

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Ensure that all Chileans have recovered their homes by 2014

The greatest challenge is to finish the reconstruction of the 220,000 homes damaged during the earthquake and tsunami in 4 years, benefitting some 880,000 Chileans with a definitive home so that they are able to get on with their lives. The success of this process would be a historic benchmark for the country not only due to the challenging deadline for this recovery but also for the dimension of what was undertaken. International experience has shown that it is feasible although it is an extremely ambitious goal. In effect, successful reconstruction such as after the 1995 earthquake in Kobe, Japan, or the 2004 earthquake and tsunami in Indonesia, were finished in 3 and 5 years respectively, with 100,000 and 214,000 homes rebuilt or repaired.

The reconstruction process has focused on the dignity of the people who lost their homes, enabling families to choose the type of home that is most appropriate for their needs, empowering the family as homeowners. The focus has been placed on the people and their families in the long term, so they can decide where and how they want to live, respecting the territorial roots of families and ensuring that in spite of the urgency of this process, there is no compromise on quality. In some cases, this complexity has resulted in longer timeframes.

Out of the 222,000 reconstruction subsidies, more than 165,000 units are individual projects to either repair or replace homes. Each has been especially designed so the families can continue to live in the places they have always called home. The 55,000 remaining units are for families who were renting homes that were damaged or who are living in temporary accommodation. The Government decided to take advantage of the reconstruction program to solve the historic housing deficit in the cities affected by the disaster. Progress to date has been in accordance with expectations, and it is estimated that the challenge to finish the reconstruction process by March 2014 will be fulfilled. Progress, in terms of allocation of subsidies, exceeded the proposed goal, reaching 101% in July 2012, while by February 27, 2013, progress had reached 93% in terms of works underway and 65% for finished projects.

GOALS AND DEADLINES FOR HOUSING RECONSTRUCTION15

15

Source: MINVU, February 27, 2013.

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The initial survey, which estimated a 50:50 split between the need for new housing and the need for repairs turned out to be quite realistic: out of the 222,000 allocated subsidies, 113,570 or 51% corresponded to new housing (construction and acquisition), and 108,848 or 49% to repairs.

At first, progress was primarily focused on repairs as these were quicker and less complex. Over time, this situation has evened out with a greater amount of new housing: out of the 144,000 homes that have been delivered, 55,000 (38%) correspond to new homes and 89,000 (62%) to repairs. This becomes even more apparent if we analyze the 62,000 works currently under construction16; 53,000 (85%) are new housing, and only 9,000 (15%) are repairs. Out of the approximately 16,000 works yet to begin, 7,000 (44%) are new housing and 9,000 (56%) repairs.

PROGRESS OF HOUSING RECONSTRUCTION PER REGION17

State of progress Type of solution18

Projects19

VA RM OH ML BB AU Total

Finished works New homes 2,006 2,249 9,324 15,966 23,630 1,957 55,132

Repairs 9,401 24,064 4,934 16,401 32,383 2,250 89,433

Works under construction (started but not finished)

New homes 2,181 3,227 8,318 16,535 21,938 411 52,610

Repairs 127 2,681 907 639 5,075 6 9,435

Works to be started

New homes 206 476 1,851 138 4,285 0 6,956

Repairs 299 746 1,778 283 5,708 38 8,852

Total 14,220 33,443 27,112 49,962 93,019 4,662 222,418

Total regional progress20

88% 88% 70% 82% 75% 95% 79%

With regards to the works due to begin21, 3,952 projects per month – a combination of new homes and repairs – will need to be started in the next four months in order to meet the deadline and finish the process by March 2014. The pace of the past six months has been to start 4,098 projects per month.

Finally, in order to speed up any existing bottlenecks which have particularly slowed the pace in historical and rural areas, four extraordinary measures were implemented which have begun to solve the obstacles in certain housing reconstruction processes: the Special Urban Renovation and Densification Program (Programa Especial de Densificación y Renovación Urbana),focused on the historical areas in the larger

16

Corresponds to the difference between the works underway and finished works 17

Source: MINVU, February 27, 2013. 18

New housing includes Construction on Own Land (Construcción en Sitio propio -CSP), Construcción en Nuevo Terreno (CNT) (Construction on New Land) and Adquisición (Acquisition) (FSV AVC and DS 40); the repairs correspond to the Protection of Family Heritage Program (Programa de Protección del Patrimonio Familiar – PPPF). 19

VA: Valparaíso, RM: Metropolitan, OH: O’Higgins, ML: Maule, BB: Biobío, AU: Araucanía. 20

50%* projects launched less those completed by the total + 100%* of the projects completed by the total 21

Purchases are not accounted for since it is a voucher that is given to the beneficiary which can be used when deemed convenient.

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cities with a project subsidy conditioned to its sale, and which requires compliance with a design guide; the Portable Subsidy for Victims (Subsidio Portable para Damnificados) that gives people the freedom to choose, thus ending the restriction that the owner may build only on a plot he/she owns; the Assisted Self-building Subsidy (Subsidio de Autoconstrucción Asistida) of 440 UF (approx. US$20,000), ideal for rural zones, that provides solutions for areas which are difficult for construction companies to access; and the decrease of processing, decentralization of functions and simplification of processes, reducing by up to two and a half months the total reconstruction time, which is transversal for all subsidies. All these measures to speed up the application and construction processes for housing have been carried out without compromising a single technical regulation, implementing rigorous control processes to ensure that each housing unit meets all the fire protection, acoustic, thermal and seismic regulations.

As of February 2013, 3,716 Urban Densification subsidies and 957 Assisted Self-building subsidies have been granted, and the transferability of over 1,060 Acquisition of Built Housing subsidies (subsidios de Adquisición de Vivienda Construida – AVC) have been processed, allowing them to be transferred to the Construction on New Land (CNT). In all, these programs designed to speed processes up have benefited approximately 7,000 people.

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Establish the conditions for improved reconstruction of urban and coastal areas

To ensure that Chile’s cities are better prepared to cope with future disasters, and take the opportunity presented by this disaster to make long-term improvements to our urban and coastal areas, master plans were drawn up to enable optimum, efficient use of the sites. Zoning was established which would help in dealing with future catastrophes, and was also in harmony with the spirit of the cities and coastal areas.

This process involved developing 137 master plans, and cleaning and improving 9 beaches. Progress to date: 100%.

The master plans are divided into 110 Urban Regeneration Plans (Planes de Regeneración Urbana, PRU) and 27 Urban Reconstruction Master Plans (Planes maestros de Reconstrucción Urbana, PRES). Of the 137 master plans, 25 were for coastal zones and 112 were for inland towns.

The Urban Regeneration Plans (PRU) are for small and medium-sized towns whose urban image is affected by the reconstruction process. The PRUs guide the harmonious reconstruction of towns, districts and cities whose urban character and identity are threatened by the reconstruction process itself, and which deserve instruments which will recognize and protect their value as a whole. The Urban Reconstruction Master Plans (PRES) generate sustainable, integrated solutions, siting inhabitable areas in protected spaces which will be safe in the event of future catastrophes. There will be an initial investment program for this purpose, and guidelines will be established for the growth and development of urban and coastal areas in the future.

In towns of particular heritage interest, an additional subsidy has been made available to ensure that the reconstruction of homes preserves the architectural image of the country's traditional towns, recovering their history, their character and their national roots. By February 2013, a total of 5,086 special housing subsidies had been granted to 142 heritage towns.

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Recover Chile's entire road network and production infrastructure by 2014

This challenge refers to the normalization of the country's transport network, basic services and productive capacity, repairing all the infrastructure involved, i.e. roads, railways, bridges, ports, airports, reservoirs and canals, re-establishing telecommunications networks, electricity and water supplies, and drains, in the short and long term through partial and final solutions.

A large part of this task corresponds to the Public Works Ministry, except for urban roads, which are the responsibility of the Housing and Urban Development Ministry and others through public service companies.

Progress to date in terms of operability: 99.9%. When planning reconstruction, the Public Works Ministry gave priority to normalizing the country's transport network, public services and production infrastructure. Two stages were defined: emergency and reconstruction. The former objective was the more urgent, and involved making almost 100% of the points damaged by the earthquake operational. The provision of long-term final solutions was left to the reconstruction phase, with large projects in places which in many cases were already operational, such as repairing seafronts, replacing temporary bridges, etc., totaling 50 works.

SUMMARY OF PROGRESS ON OPERABILITY OF WORKS DAMAGED BY THE EARTHQUAKE22

PROGRAM Points damaged by Region23

Progress24 Date of

completion VA RM OH ML BB AU Total25

Road network 57 69 142 186 167 94 719 99.9% Dec 2013

Rural Drinking Water 130 99 121 143 134 121 748 100% Dec 2010

Architecture 7 9 10 15 24 7 72 100% Dec 2012

Water and Waterworks 3 17 5 24 48 1 101 97% Mar 2014

Ports 5 5 13 25 2 53 99.9% Mar 2014

Airports 526 5 2 12 100% Dec 2010

Highways and Main Roads under Concession 798 100% Dec 2012

Total (number) 202 199 283 381 403 227 2.499 99.9% Mar 2014

22

Source: Public Works Ministry. 23

VA: Valparaíso, RM: Metropolitan region, OH: O’Higgins, ML: Maule, BB: Biobío, AU: Araucanía. 24

Corresponds to damaged operational points. 25

Las diferencias entre los totales y la suma de las regiones están dados por proyectos en la Región de los Ríos o interregionales. 26

One of these is the Santiago International Airport (Aeropuerto Internacional Arturo Merino Benítez), through concessions.

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Progress on these final works included delivery of the permanent bridge over the Claro River, on the Pan-American Highway, bringing reconstruction by concessionaries to 100%; the following bridges are also complete: Botalcura, Pellines, La Laguna and San Camilo in the Maule Region, Las Toscas and Coínco in O’Higgins and El Bar in Biobío.

Works in seven ports have been completed, including repairs to the Tirúa River terminals, the fishing wharf in Lo Rojas, Coronel, the Lota Bajo wharf, and the Llico and Tumbes fishing quays, while the Maguellines fishing quay is 82% complete and will be ready in April 2013. Furthermore, the first stage of replacing the seafront at Dichato has been completed and other emblematic works are expected to be finished in 2013, such as the Bicentenary bridge over the Biobío River and the improvements to the seafront in the La Poza sector of Talcahuano.

One hundred kilometers of urban roads for which the Housing and Urban Development Ministry is responsible were damaged, and these have all been repaired.

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Re-establish economic activity in the affected zone

This section covers the initiatives taken by the government with the aim of recovering industrial activity, production, tourism and employment in the disaster zone.

In March 2010, as a consequence of the earthquake, the Treasury Ministry announced the temporary suspension of some tax payment procedures in the affected regions and granted exceptional payment facilities to tax-payers in affected zones. In addition, Law N° 20.460 on agreements with the General Treasury of the Republic on overdue tax was published on August 17, 2010, temporarily increasing the number of installments for paying overdue tax from 12 to 36.

Special support programs were implemented for SMEs in the affected regions, through the Technical Cooperation Service (Servicio de Cooperación Técnica, SERCOTEC) and the Chilean Economic Development Agency (Corporación de Fomento de la Producción, CORFO), both to encourage investment in production infrastructure and to facilitate access to financing. More than 42,000 such companies were helped through these two institutions, with reconstruction programs worth a total of 454 million dollars.

DEVELOPMENT OF THE REGIONAL ECONOMIC ACTIVITY INDEX (INACER) FOR AFFECTED

REGIONS27

The most affected regions presented positive recovery after the earthquake, with figures showing considerable growth from the first quarter of 2011.

Variation in index Regional Economic Activity Index

Valparaíso O´Higgins Maule Biobío Araucanía

Jan–Mar 2010 1.9 -1.7 -3.0 -19.7 3.5

Apr–Jun 2010 12.6 -5.0 3.1 -17.9 4.3

Jul–Sep 2010 10 -0.8 -1.2 -4.6 4.3

Oct–Dec 2010 10.4 -0.3 3.7 0.4 4.8

Jan–Mar 2011 10.4 6.1 8.2 23.8 5.2

Apr–Jun 2011 9.1 5.9 7.6 22 3.4

Jul–Sep 2011 4.5 3.8 9.7 4.5 2.3

Oct–Dec 2011 1.9 1.1 9.1 4.8 3.9

Jan–Mar 2012 5.1 8.9 8.3 2.8 5.4

Apr–Jun 2012 0.4 12.5 6.9 1.6 4.4

Jul–Sep 2012 -3.1 12.9 6.2 3.0 6.8

Oct–Dec 2012 3.1 5.1 0.7 1.4 6.4

Periods of vigorous recovery Moderate shock post earthquake Severe shock post earthquake

One of the consequences of the earthquake was a reduction in the number of foreign visitors entering the country as compared to 2009, by 22% in March and 18 % in April. Joint plans and programs were set up

27

Fuente: INE. Las cifras corresponden a la tasa de variación del INACER respecto a igual trimestre del año anterior.

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with Argentina, Brazil, Venezuela and Colombia, leading to a recovery in the flow of foreign visitors. This was achieved through participation in trade fairs and events, press tours, and campaigns to reach the end client through publicity and the press, to promote Chile as a tourist destination. The second half of 2010 closed with an increase of 8% in receptive tourism. In 2011 more than 3 million tourists visited the country, a record which was again broken in 2012, when almost 3.5 million tourists arrived.

In order to overcome the effects of the disaster on the fishing industry, the Office of the Fisheries Undersecretary implemented the public-private "Volvamos a la Mar” (Let’s get Back to Sea) program, through which 3.489 billion pesos were handed over, through the Fund for the Development of Small-Scale Fishing (Fondo de Fomento de la Pesca Artesanal) and the Fund for Fisheries Administration (Fondo de Administración Pesquero), to co-finance investment worth 4.623 billion pesos for 1,100 beneficiaries, including small-scale fishermen, crew members, and boat-owners, and 331 shellfish divers and boat-owners. The same office also coordinated the contribution from the UN Food and Agriculture Organization (FAO), which donated one million dollars in replacement boats, motors and fishing equipment for the 16 small-scale fishing wharfs affected. Meanwhile, the Chilean Red Cross, through a donation of 2 million dollars by the Japanese Red Cross, implemented a program to replace boats and/or motors for 120 owners in the Maule and Biobío Regions.

The passing of Law 20.451, which modified the General Law on Fishing and Aquaculture for Disaster Zones, temporarily eased the requirements for habituality and expiry for the registration of small-scale fishing and the replacement of small fishing boats.

Disaster quotas were also established for mackerel, anchoveta and common sardine, allotted to more than 4,000 small-scale fishermen in the worst affected sectors. These disaster quotas were equivalent to a direct grant of 6.4 million dollars to the beneficiaries.

DEVELOPMENT OF THE UNEMPLOYMENT INDEX IN AFFECTED REGIONS28

In terms of employment, the shock was overcome thanks to the economic growth experienced in Chile, with a significant drop in unemployment in all the affected regions.

Variation in index [%] Unemployment

29

VA RM OH ML BB AU National

Jan–Mar 2010 11.1 9.4 6 7.8 9.9 8.2 9

Feb–Apr 2010 10.4 8.9 5.3 7.3 10.6 8 8.6

Mar–May 2010 10.8 8.8 6.4 7.7 11 8.2 8.8

Apr–Jun 2010 10.2 8.3 6.4 8 10.2 9.2 8.5

Jul–Sep 2010 9.3 7.8 8.4 6.8 9.1 8.3 8

Oct–Dec 2010 8.3 7.2 6.4 5.7 7.5 7.9 7.1

Variation in index [%] Unemployment

30

VA RM OH ML BB AU National

Apr–Jun 2011 8.3 7 6.4 7.6 8.2 8.1 7.2

28

Source: INE. 29

Source: INE. The figures correspond to the variation as compared to the equivalent quarter of the previous year. 30

Source: INE. The figures correspond to the variation as compared to the equivalent quarter of the previous year.

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Jul–Sep 2011 8.3 7.4 7.2 7.5 9.1 8.7 7.4

Oct–Dec 2011 8.0 7.0 4.7 5.7 7.5 6.9 6.6

Jan–Mar 2012 7.7 6.6 4.5 5.8 8.1 8.2 6.6

Apr–Jun 2012 7.5 6.8 6.4 6.9 8.1 7.9 6.6

Jul–Sep 2012 7.2 6.7 6.6 6.2 8.4 6.6 6.5

Oct–Dec 2012 6.7 6.1 5.6 5.1 7.9 6.2 6.1

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Reconstruct damaged public buildings by 2014

This challenge refers to the reconstruction of Chile's public buildings, defined as national and local government offices, prisons, Armed Forces buildings, gymnasiums, theaters, cemeteries and parks, as well as heritage buildings which symbolize the country's culture and spirit. The demolition of buildings with structural problems is also included.

Progress to date: 75%, consisting mainly of the design, engineering and construction of works with major damage, as well as minor repairs. Work on these buildings is slow and will take the whole presidential term, since it covers the repair of hundreds of buildings of different kinds, many of which are heritage buildings. This reconstruction work will allow the recovery of buildings which belong to everyone in Chile, improving building standards and maintaining the architectural character of heritage works.

SUMMARY OF PROGRESS IN THE RECONSTRUCTION OF PUBLIC BUILDINGS31

Program Points damaged by Region

32

Progress33

Date of

completion VA RM OH ML BB AU NR Total

Police Stations 149 149 80% Mar 2014

Prisons and Courts 1 1 4 6 50% Mar 2014

National Government Offices 2 4 13 7 15 1 42 42% Mar 2014

Municipal Government Offices 66 101 77 115 157 49 565 77% Mar 2014

Repair to ASMAR infrastructure Repairs to Armed Forces infrastructure.

7

27

1

7

7

51

5

7

98

69%

71%

Mar 2014

Mar 2014

Building demolitions 3 8 11 82% Dec 2013

Total (number) 75 136 91 130 242 55 149 878 75% Mar 2014

31

Source: Public Works Ministry, Interior Ministry, Defense Ministry and Justice Ministry. 32

VA: Valparaíso, RM: Metropolitan, OH: O’Higgins, ML: Maule, BB: Biobío, AU: Araucanía, NR: no region. 33

Corresponds to percentage of general progress, not to completed works.

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An opportunity to improve healthcare services

In healthcare, reconstruction efforts were focused on patients: for the first four months following the

quake, the priority was the complete recovery of health care capacity, with the installation of 19 field

hospitals and 18 operating theaters and more than 3 million people receiving vaccinations, particularly

against influenza. Six months after the earthquake, more than 90% of lost beds and medical and industrial

equipment had been restored. Subsequently, as a medium and long-term goal, the aim was not only to

ensure comprehensive access to health care services, but also improve access to health centers of all

sizes, and improve the quality and infrastructure of health care services in the affected areas.

The program includes repairs and renovations to 207 rural health centers, family health centers (Centros de Salud Familiar, CESFAMs) and Primary Healthcare Centers, as well as repairs to more than 110 hospitals and the accelerated construction of nine hospitals.

The rate of progress is 99%, equating to more than 335 primary and hospital health centers. The works remaining are major repairs that involve a high level of complexity and a larger budget.

These objectives aim to improve access to small, medium and major health centers in the short, medium and long term, and also improve the quality of health care services and infrastructure in the affected areas.

RECONSTRUCTION PROGRESS SUMMARY FOR HEALTHCARE34

PROGRAM

Projects per region35

Progres

s Completion date

VA MR OH ML BB AU Total

Repairs to health clinics and Family Health Centers

36

14 50 22 39 74 8 207 100% 2010

Minor hospital repairs 19 26 15 10 19 21 110 100% 2010

Accelerated construction of hospitals 1 1 6 1 9 100% 2011

Major repairs plan 2 4 3 9 62% 2014

34

Source: Health Ministry. Completed works and percentages of progress for works with greater damage are considered. 35

VA: Valparaíso, MR: Metropolitan Region, OH: O’Higgins, ML: Maule, BB: Biobío, AU: Araucanía 36

Includes those carried out through the Health Ministry (15 health clinics and Family Health Centers) and the Undersecretariat of Regional and Administrative Development (192).

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PROGRAM

Projects per region37

Progres

s Completion date

VA MR OH ML BB AU Total

Investments in health in affected areas to reduce gaps

2 1 4 7 77% 2014

Total 36 85 39 56 104 32 342 98,5% 2014

In terms of reconstruction, , the nine hospitals that were built under the accelerated building program have already been inaugurated, the last of these in September 2011. In the Maule Region, the Curicó, Cauquenes, Hualañé and Parral hospitals, as well as the in-patient and out-patient hospitals in the city of Talca, have been rebuilt, adding to the San Antonio de Putaendo Hospital in Valparaiso Region, the Herminda Martín de Chillán Hospital in the Biobío Region and the Félix Bulnes Hospital in the Metropolitan Region. In total, 763 new hospital beds have been provided, an investment of around 38 billion Chilean pesos (around $US 80 million) which will benefit more than 3 million Chileans.

Moreover, as of February 2013, there has been steady progress in the repair work eight hospitals, with ten new wards and 120 beds in the Temuco Hospital; the completion of the Angol Hospital tower and new works in the National Cancer Institute; the San Borja complex in its final stages of completion; and the Guillermo Grant Benavente Hospital in Concepción, where the first phase of repair on the Emergency Tower was completed, with the second phase to be completed in November 2013.

In terms of the damaged hospitals and the provision of new infrastructure for earthquake-affected areas, as of February 2013, works in five hospitals have been completed (Los Andes, Santa Cruz, Las Higueras in Talcahuano, Temuco and Corral), providing 1,587 beds. Renovation and construction works on five hospitals (Rancagua, Talca, Cañete, Osorno and Los Ángeles Hospitals) are underway, with an average progress of 77%. These will provide an additional 2,175 hospital beds to affected areas and will be ready during the first half of 2014.

Currently, 100% of medical and industrial equipment is installed and operational.

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All educational institutions repaired by 2014

During the emergency stage of reconstruction, the aim was to ensure that the 1,250,000 students whose schools had been severely damaged schools by the earthquake were able to start classes and not miss the school year. This was achieved only 45 days after the earthquake. Many of these solutions were temporary, so the aim was to repair all the damaged establishments by 2014. Through a massive public-private effort, a large part of this work has now been completed.

As of January 31, 2013, 4,654 educational establishments have reported earthquake damage. Of these, 1,983 have been repaired with funds from the Education Ministry while the rest were either repaired using external funding or the application for reconstruction funding was withdrawn. For those establishments that required assistance, 15 reconstruction plans were designed according to the level of damage and the complexity of the work.

As of the end of January 2013, 2,573 repair projects have been allocated – of which 104 were cancelled or resolved by another means and only 2,469 remain active – for 1,983 damaged establishments using funds from the Education Ministry. The rate of progress, determined by measuring completed projects over active projects (not including the 104 cancelled projects) is 87%.

The repairs financed by the Education Ministry, which range from repairs to roofs and cracks to whole building renovations, have benefitted more than 932,000 students. However, if we include the establishments repaired using external funds, the overall impact of reconstruction has benefitted more than 1.6 million children. The following table shows progress on active projects per region for each of the repair programs, followed by a description of the various plans implemented38.

RECONSTRUCTION PROGRESS SUMMARY EDUCATION39

PROGRAM Active projects per region

40 Progress41

Completion

date42

VA MR OH ML BB AU Total

Earthquake Plan: minor repairs 27 185 80 109 194 17 612 100% Dec-11

Repairs to private non-profit educational establishments

21 38 8 20 23 14 124 100% Dec-12

PROGRAM Active projects per region43

Progress

44

Completion

38

Source: Education Ministry. 39

Source: Education Ministry. 40

In some cases there is more than one project active for the same educational institution. 41

Completed projects with provisional approval certificate or certification of a monitoring visit. The progress percentage is calculated over the total number of current projects; cancelled projects are not considered. 42

Completion dates are estimates by the Education Ministry. These may be modified by donors depending on development progress.. 43

In some cases there is more than one project active for the same educational institution. 44

Completed projects with provisional approval certificate or certification of a monitoring visit. The progress percentage is calculated over the total number of current projects; cancelled projects are not considered.

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VA MR OH ML BB AU Total

Medium repairs plan46

65 171 106 104 148 43 637 65% Nov-13

Major repairs plan 4 11 1 11 7 1 35 0% Dec-14

Flagship schools repairs plan 1 10 0 12 23 2 48 73% Dec -13

Replacements plan 1 1 0 2 6 0 10 0% Dec -13

Establishments of delegated administration 0 3 0 0 4 2 9 100% Apr-10

Traditional educational establishments 0 2 2 8 4 0 16 75% Jul-13

Preferential School Subsidy Plan 1 16 2 14 8 7 48 100% Dec -11

Equipment and Furnishings Plan 3 10 0 6 8 0 27 0% Feb-14

Total 265 654 317 462 637 134 2469 87%

PROGRAM Completed projects by Plan

VA MR OH ML BB AU Total

Earthquake Plan: minor repairs 27 185 80 109 194 17 612

Repairs for private non-profit educational establishments

21 38 8 20 23 14 124

Minor repairs plan 142 199 116 174 211 48 890

Medium repairs plan 33 120 84 70 83 30 420

Major repairs plan 0 0 0 0 0 0 0

Flagship schools repair plan 1 10 0 5 17 2 35

Replacements 0 0 0 0 0 0 0

Establishments of delegated administration

0 3 0 0 4 2 9

Traditional establishments 0 1 0 7 4 0 12

Preferential School Subsidy plan 1 16 2 14 8 7 48

Equipment and Furnishings plan 0 0 0 0 0 0 0

Total 225 572 290 399 544 120 2.150

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Completion dates are estimates of the Education Ministry. These may be modified by donors depending on development progress. 46

Includes stages 3,4 and 5 of the Minor Repairs Plan.

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PROGRAMS IMPLEMENTED BY THE EDUCATION MINISTRY

PROGRAM Program objective

Earthquake Plan: minor repairs

Minor repairs of up to 30 million Chilean pesos (US$ 63,000), (cracks, roofing, bathrooms, removal of debris) to allow for the start of the 2010 school year. Coordinated by the Undersecretariat of Regional and Administrative Development (Subsecretaría de Desarrollo Regional y Administrativo, Subdere).

Repairs for private non-profit educational establishments

Minor repairs (cracks, roofing, bathrooms, removal of debris) in private non-profit educational establishments.

Minor repairs plan

Minor repairs (perimeter boundaries, bathrooms, roofing, classrooms) in two stages: the first for projects of up to $80 million Chilean pesos (US$ 169,000) and the second for projects of up to $60 million Chilean pesos (US$ 126,000).

Medium repairs plan Medium repairs (construction of classrooms, canteens, bathrooms, other facilities, demolitions) up to a maximum of $180 million Chilean pesos (US$379,000) per project.

Major repairs plan

Major repairs (demolitions, repairs to large buildings, partial reconstruction of buildings) with costs of over $180 million Chilean pesos (US$379,000) per project.

Flagship schools repair plan

High priority schools for the region, which suffered severe damage requiring more complex projects (large scale renovations) and also some smaller projects that nonetheless have a high impact for local communities. These were defined following consultation with the regional authorities in the principal municipalities that were affected. School communities (donors, students, teachers and guardians) were offered direct support by the Education Ministry to design and develop projects.

Replacements plan Complete rebuilding of the educational establishment.

Establishments with delegated administration

Acquisition of temporary classroom blocks (also used as multi-purpose rooms) for establishments with delegated administration and allow for the continued provision of educational services.

Traditional establishments

Finance for municipal schools – so-called traditional schools which are sponsored by the Education Ministry – was used to pay for demolitions (accident risk mitigation) and urgent repairs to prepare schools for the start of the 2010 school year. Also used for special cases during 2010.

Preferential School Subsidy plan Fund allowing for repairs, acquisition of equipment and/or furnishings, using resources from the preferential school subsidy during 2011.

Equipment and Furnishings plan

Plan announced in 2012 and funding awarded to educational establishments suffering earthquake damage for repairs costing less than $100 million Chilean pesos (US$211,000), and also for educational establishments received less than $180 million Chilean pesos (US$379,000) for earthquake repairs in the various previous plans and that had not received funds for furnishings and/or equipment in previous plans.

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Public and private sector finance to fund the Reconstruction Plan

This section refers to the public and private funding of the Reconstruction Plan.

Extraordinary public resources have been generated by the Reconstruction Financing Law. Law 20,445, approved in July 2010, made various modifications to the tax system by temporarily increasing the first category tax, modifying the tobacco law and creating a new tax regime to exempt SMEs from tax when they reinvest profits – thus mitigating the costs incurred by these businesses as a result of damages - and direct resources from the Copper Reserve Law to fund the reconstruction plan, among other measures.

It is estimated that this law will generate direct and indirect revenue: directly, between 2010 and 2013 it will generate approximately US$3.625 billion47; indirectly, through the Transfer of funds from the Copper Reserve Law, an additional US$1.2 million will be available.

For private funding, Law 20,444 was passed in May 2010, which created the National Reconstruction Fund and established tax incentives for donations to aid recovery from natural disasters. On February 8, 2012, Law 20,565 was passed, modifying laws 20,444 and 19,885. Referred to as the “Cubillos Law”, it simplifies the donations process and improves the incentives system.

Together, these two mechanisms have provided US$5.13 billion in funding.

47

Source: Treasury Ministry.

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Be better prepared for future disasters

We know we cannot control nature and the earthquake showed us we were not prepared for natural disasters. Because of this, a key priority of the reconstruction effort was to better prepare Chile so the public is better protected in the event of future natural disasters. It was therefore proposed to reform and modernize the emergency and civil protection systems, as well as our existing institutions in terms of disaster management and prevention, so as to greatly improve the technical, tactical and strategic systems in our country. The goal is that in the event of future disasters, Chile can respond better, thereby minimizing the risk of harm to people and damage to property. Four lines of action were therefore developed.

The first line of action concerns the creation of a new institutional structure and improvements to existing institutions’ operations. A bill was sent to Congress on March 22, 2011 to establish the National Emergency and Civil Protection System and set up the National Civil Protection Agency. This organization will have the necessary powers and responsibilities to guarantee monitoring and response when faced with natural disasters. It also grants powers to the Armed Forces through a protocol enabling them to participate in emergencies. As of January 2013, the project has been marked urgent and is at the first constitutional stage in the House of Representatives, with the Interior Government Committee. The second objective has been achieved through improving the functioning of the Emergency Operations Committees (EOCs). Supreme Decree No.38 of January 2011 and the implementation of an Operating Manual for National and Regional EOCs clearly define their members and roles. Improvements in preparation have also been made by carrying out ongoing drills. By February 2014 it is hoped that these committees will receive training in order to be certified on an annual basis. The functioning of the Regional Offices of Chile’s National Emergency Office, ONEMI, has been substantially improved. They now operate 24/7; the number of staff per region has increased from 4 to 11; each office now has 48 hours of energy autonomy (which will reach 96 hours in 2014); and communications have been strengthened.

The second line of action concerns campaigns and operations to educate the population, through periodic evacuation drills in all cities at risk of tsunamis. As part of the Chile Preparado (Chile Prepared) program, to date there have been 21 drills on a national level: five in 2010, ten in 2011 and six in 2012, with a total participation of more than three million people, and including earthquake, tsunami and forest fire emergencies. Additionally, in October 2012, the first bi-national drill took place between Chile and Peru, with 71,000 Chileans in the Arica y Parinacota region participating alongside 80,000 Peruvians from the Tacna region in Peru. Moreover, the “Tsunami Signal” installation project is underway, with 70% progress made nationwide and 99.9% implementation in the 1st to 8th regions. The new signage is of standard design in accordance with the international norms of the Permanent Commission for the South Pacific.

The third line of action is to improve communications in the Civil Protection System and the Seismic Monitoring Network, through five principal initiatives.

The first initiative is a new Emergency Communications Network for the ONEMI, one which is autonomous and independent of commercial networks, that informs the public in circumstances where the conventional networks have collapsed or failed. In other improvements, 82 satellite phones were allocated to members of the Emergency Operations Committee (EOC) and key authorities, which will be tested daily to ensure communication in case of emergency; and satellite internet was installed in the 15 regional offices of the ONEMI and in the National Early Warning Center.

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The second initiative is the requirement that private telecommunications companies have energy autonomy through backup systems. 879 critical infrastructure sites were identified which serve 90% of the Chilean population – more than 15 million people – and these now have autonomy for 48 hours. For the rest of the network, the requirement is for 2 to 4 hours.

The third initiative concerns an improvement in the means of getting a mass alert out to the public. Currently in its testing stage is the Emergency Warning System (EWS), which send text messages to provide early warnings to the population, targeted to specific geographical areas and groups of people or organizations. The EWS seal for mobile phones is about to be launched. Additionally, other means of alerting the population during emergencies have been incorporated, such as the installation of 49 coastline sirens, increasing to 90 in February 2014; the activation of the ABC system (“Ambulancia/Bomberos/Carabineros” – Ambulance/Firefighters/Police), which has already been tested through simulations; and the signing of an agreement with the Chilean Radio Broadcasters Association (Asociacion de Radiodifusores de Chile, ARCHI), which includes a web system already in operation, providing warnings in real-time to broadcasters.

The fourth initiative is part of the public agreement signed by the Transport and Telecommunications Ministry, Carabineros (Chilean Armed Police) and the Investigations Police (PDI) to share an additional digital communications network, which will be implemented in full at the end of 2013 and has coverage equal to the Carabineros’ Plan Cuadrante (Quadrant Plan).

The fifth initiative concerns an improvement in infrastructure and public procedures. In infrastructure: an increase in the number of stations measuring sea level by more than 100%, from 17 to 35; and an improvement in the seismographic network, which between the ONEMI and the University of Chile includes 94 installed stations, to reach 104 in 2013, almost double the number that existed in February 2010. Furthermore, 40 stations of mobile broadband were incorporated for research, 130 precision GPS were installed to monitor plate movements, and installation of a network of 297 accelerometers is underway, with 15% of the network installed as of January 2013, due to reach 100% in the second half of 2013. At the same time, in terms of procedures, the National Emergency Office (ONEMI) and the Hydrographic and Oceanographic Service (Servicio Hidrográfico y Oceanográfico, SHOA) signed a new protocol for communication and operation, which establishes clear responsibilities, determines procedures for the transmission of information and agrees on mitigation actions for earthquakes on the coastline, as well as granting the ONEMI the power to declare a “Preventive Evacuation” under certain clearly stipulated conditions.

The fourth and final line of action modifies the seismic regulations regarding the use of reinforced concrete (NCh430) and earthquake design for buildings (NCh33), increasing its requirements with the aim of making buildings more resilient against future disasters. These new regulations are in place as of February 25, 2011, but some drawbacks have appeared in their application, so minor changes are being made. After a number of months, it was observed that some of the changes made had to be adjusted. Considering that this verdict was shared by specialists, including those who participated in the drafting of decrees issued in February 2011, the Housing and Urban Development Ministry reconvened the committee of experts to analyze the necessary adjustments to the regulations already in place. The result of this work was two decrees more demanding than those that existed when the earthquake occurred, and these took effect on December 14, 2011.

RECONSTRUCTION PROGRESS REPORT

FOLLOWING THE EARTHQUAKE OF FEBRUARY 27, 2010

GOVERNMENT OF PRESIDENT SEBASTIÁN PIÑERA

FEBRUARY 2013

Presidential Unit on Compliance Management

Inter-ministry Coordination Division

Ministry General Secretariat of the Presidency of Chile

www.gob.cl/cumplimiento