AMENDMENT OF LAW N ° 18,450, ON THE PROMOTION OF PRIVATE INVESTMENT IN IRRIGATION AND DRAINAGE WORKS, bearing in mind that the National Congress has given its approval to the following Draft Law: " Article 1.-amend the law N ° 18,450, which approves for the promotion of private investment in irrigation and drainage works, as follows: 1.-Substitute Article 1, by the following: " Article 1 °.-The State, for fourteen years counted from the time of this law, shall be entitled to a 75%, the cost of studies, construction and rehabilitation of irrigation or drainage works, and investments in mechanical irrigation equipment and elements, provided that they are executed to increase the irrigation area, improve water supply on areas irrigated in a loss-making way, improve the efficiency of the application of irrigation water or enable soil In the case of the agricultural sector, there is no doubt that the Commission will not be able to take the necessary measures to ensure that the aid is granted to the Community. In addition, expenditure involving the organisation of water communities and drainage works referred to in the first paragraph of Article 2 shall be subsidised. Exceptionally, in cases qualified by the National Commission of Riego, they will be able to qualify as projects appendices to those of irrigation proper, works aimed at solving problems of water in the livestock sector and others related to the rural development of the pregod or irrigation systems that benefit from the benefits of this law. The sum of the cost of the works and the amount of the investments referred to in the preceding points may not exceed 12,000 units of promotion, except where the applicants are organizations of users defined in the Code of Water or communities of water and drainage works that have begun their process of incorporation, who may present projects of up to 24,000 promotion units, which will benefit their associates, community members or members. " 2.- Replace Article 2, by the following: " Article 2 °.-They may benefit from the allowance provided for in Article 2. this law, individually or collectively, the natural or legal persons who own, usufrucarias, registered holders or mere tenors in the process of regularisation of titles of agricultural premises, for the works and investments they carry out for the direct benefit of the respective premises. The user organisations provided for in the Water Code may also be eligible, including non-organised communities which have started their process of incorporation, reducing to public writing the minutes of their appointment as representative. (a) common, for works and investments to be carried out in irrigation or drainage systems under its jurisdiction. The non-organized communities benefiting from a unified work must be established as user organizations according to the law. Except as provided for in the foregoing paragraph, the entities in which the State has contributions or participation, except where they are part of an organisation of users or of a non-organised community. " 3.-Substitute Article 3, by the Next: " Article 3.-The National Riego Commission may assign to the National Institute of Agricultural Development, in respect of accepted applications, the resources to pre-finance, up to the amount of the approved bonus, the costs of study of projects, construction and rehabilitation of irrigation or drainage works, submitted by small agricultural producers, user organisations and non-organised communities. They will be understood by small agricultural producers to whom the Organic Law of the National Institute of Agricultural Development defines as such. They shall be eligible for pre-financing provided for in the first subparagraph, projects which consult the construction of new irrigation or drainage works submitted by small agricultural producers or by organizations of usurians and water communities. of unorganised drainage works, provided that the new available water supplies or the area drained, as the case may be, correspond to at least 75% to small producers who integrate them. Projects submitted by small agricultural producers or by organisations of users and water communities or unorganised drainage works, integrated at least 66% of their components, shall also be entitled to the same benefit. such producers, in the case of projects which consult the rehabilitation of irrigation or drainage works. It shall not be eligible for the allowance provided for in this law, expenditure relating to the purchase of machinery and equipment necessary for the construction, installation or repair of irrigation or drainage works, or equipment and implements for manufacture, installing or repairing mechanical irrigation elements. In addition, the usual costs of operation and maintenance of the works, or equipment and elements referred to in the preceding paragraph, existing or constructed or acquired through the application of this law, shall not be subject to any bonus. " 4.- Make the following amendments to Article 4 (a) Substitute your first indent, by the following: " Article 4 °.-The National Riego Commission shall at least quarterly call for public competitions to which it may apply with its projects the potential beneficiaries referred to in Article 2. The projects must be signed by people previously qualified and registered in the Register of Consultants of the General Directorate of Public Works. In no case shall the funds referred to in this law be financed, projects which have not participated in such contests. "(b) Intercalase, following the first subparagraph, the following second indent, new:" Notwithstanding the foregoing, any potential beneficiary may initiate the construction of an irrigation project without being registered with the National Riego Commission, if the climatic, terrain, agronomic or other conditions do so, and may subsequently postulate any contest to be called by the Commission, sufficient to prove that the works were carried out in the last year and that they are not governed by the benefits of this law. "(c) Intercalase, following the second, new point, which is added by the letter above, the following third, new point:" La Commission will call for separate competitions to bonify irrigation or drainage projects for small agricultural producers, organizations and communities identified in Article 3. In addition, it will be called separately for competitions aimed at benefiting projects from regions or areas of land, groundwater catchment projects and others to be determined by the Commission, in the light of qualified circumstances. The Commission shall annually call for a similar number of tenders for small agricultural producers and for agricultural producers. '(d) Add in point (d) of the second subparagraph, which becomes fourth, following the word' project ', 5.-The following amendments to Article 5 (a) shall be inserted in point (3) of the first subparagraph, after the word "project", the phrase "for the benefit of the beneficiary". (b) To replace the third subparagraph, by the following: "The project proposing the greatest contribution shall be given three hundred points in the rating of that variable and to which it offers the least, zero point." (c) Substitute the fourth indent, by the next: "The project that has the highest value in the variable surface will receive for that concept three hundred points and the one that gets the least, zero point." d) Replace the fifth indent, for the following: " To the lowest cost project by the beneficiary will be awarded four hundred points and at the highest, zero point. " (e) Intercalase, following the Sixth, the following seventh indent: "The score of the projects referred to in the third and fourth subparagraphs of Article 3 (3) shall be increased by 100 points." 6.-Enter the following amendments to Article 6: (a) Replace the Second, for the following reasons: " The Commission may accept or propose modifications to the projects after the contest has been resolved, but in no case will the amount of the approved bonus be increased. If the cost of the projects is reduced as a result of the change made, the Commission shall reduce the subsidy approved by the same percentage. ' (b) Replace the third indent, which becomes fourth, by the following: " That body may, on the basis of a decision, whether or not to declare the contests to be called, without prejudice to the provisions of the ninth indent of the previous Article. The power to declare a contest in part shall be exercised only if the projects submitted do not comply with the laws and regulations. "(c) Intercalase in the fourth indent, which becomes fifth, between the word" itself " and the "y" conjunction, the expression "with all the corresponding antecedents". d) Add the following final point: " Without prejudice to the foregoing paragraph, the National Riego Commission shall inform and publicize, by means of its own resources, the benefits of this law, at the end of the 7.-Substitute Article 11, by the following: " Article 11.-The bonus referred to in this law shall be compatible with those laid down in other legal texts, but the sum of the bonuses which are applied for a given work and investment may not exceed 95% of the cost of the 8.-Add to Article 12, the following second indent: " In the event of a change in the use of land from agricultural or forestry land In this case, the owner must pay back the bonus received, by deducting, in a proportional manner, the time of the effective stay of the works, on the total period referred to in Article 14 of this body. 9.-The following amendments to Article 13 shall be made in accordance with the conditions laid down in the Regulation. (a) Add the following third subparagraph, new: "It shall be competent to apply the penalties referred to in the first and second subparagraphs, the Judge of Letters corresponding to the general rules." (b).-Attaché, following the paragraph the third subparagraph referred to in the preceding subparagraph: ' Without prejudice to the provisions of the preceding points, the professional responsible for the draft which shall be submitted to the competition, who shall incur the offences referred to in the First and second, with respect to the technical background and costs of such a project, will be sanctioned by the National Commission of Riego, administratively, with the non-admission in future competitions of projects prepared by the infringer. It may be appealed to the Comptroller General of the Republic. "10.-Substitute the first indent of Article 14, by the following:" Article 14.-That without the authorization of the National Commission of Riego I shall withdraw from the premises or goods purchased with the bonus before the end of the 10-year period, counted from the date of receipt of the work, shall be punishable by a fine, for tax purposes, equivalent to three times the promotion units which it has received by bonus concept. In any event, in order for the National Irrigation Commission to grant the said authorization, the goods in question must have been occupied and duly used in the objective of the project. "11.-Reposition Article 16, by the following:" Article 16.-This law has been applicable since 1 January 1986. ' 12.-Add as article 17, new, the following: " Article 17.-The regulations of this law shall be fixed by supreme decree of the Ministry of Agriculture, with the signature, in addition, of the Ministry of Economy, Development and Reconstruction, Finance, Public Works and Planning and Cooperation. " Article 2.-Amend the decree with force of Law No. 7, 1983, of the Ministry of Economy, Development and Reconstruction, which fixed the recast text of Decree Law No. 1,172, 1975, in the following form: 1.-In point (a) of Article 2 °, replace the phrase "the Minister Director of the Office of National Planning" with "the Minister for Planning and Cooperation" and 2.-Substitute Article 3 (h), by the following: " (h) Implement through the Executive Secretary or of the dependent services or which relate to the Supreme Government, through the Ministries of Economy, Development and Reconstruction, Public Works, Agriculture and Planning and Cooperation, or other if appropriate, the functions it deems appropriate. " Transitional Article.-As long as the new regulation of Law No 18.450 is not given, it shall govern in any case contrary to it, Decree No 173 of 1985 of the Ministry of Agriculture. ' And as soon as I have had the right to approve and sanction it; Both promulgate and take effect as the Law of the Republic. Santiago, 25 July 1994.-EDUARDO FREI RUIZ-TAGLE, President of the Republic.-Emiliano Ortega Riquelme, Minister of Agriculture.-Alvaro Garcia Hurtado, Minister of Economy, Development and Reconstruction.-Eduardo Aninat Ureta, Minister of Finance.- Ricardo Lagos Escobar, Minister of Public Works.-Luis Maira Aguirre, Minister of Planning and Cooperation. What I transcribe to you for your knowledge.-Salutes intently to Ud., Alejandro Gutiérrez Arteaga, Undersecretary of Agriculture.