The Inter-American Development Bank has approved a $100 million loan to support Chile's digital government agenda. This operation seeks to boost efficiency and equity in the provision of citizen services through the digital transformation of the State, both at central and at regional and municipal level.

Chile will use these resources to increase the adoption by the government of digital service systems with a citizen focus and to improve the effectiveness of public spending and investment in Information and Communication Technologies (ICT). These actions will benefit Chilean citizens in general who will gain access to better and more efficient public services.

It has been estimated that between 2019 and 2021 the digitalization of procedures has generated savings for the Chilean population of $154 million in the area of transportation, plus another $259 million for the State just by cutting in-person service expenses. However, although 89% of government procedures are digitized for citizens, 43% of these services have not yet been fully digitized internally by government agencies. Therefore there is room for deepening the digital transformation of internal processes and unlocking greater benefits.

Chile has made major strides in the digital transformation of the State. However, it lags behind some of its Latin American peers and other, more advanced economies. In the 2019 OECD Digital Government Index, Chile scored 0.411, below Uruguay and Brazil, and the OECD country average (0.501).

"This operation will be focused precisely on supporting Chile's efforts in the areas where there are still lags, like the strengthening of capacities to design and implement digital services with a citizen focus, the adoption of technologies for the digital transformation of the State, and the efficiency of investment in ICT," said IDB Representative in Chile Maria Florencia Attademo-Hirt.

To advance on these fronts, this operation will be executed through three components. The first will support the development and technological deployment of digital platforms, encouraging their adoption and use. The second will promote a new model of governance, management, and evaluation of public investment in ICT that endorses alignment with the strategic priorities of the State and performance monitoring. The third will incorporate innovations in the management and monitoring of ICT projects, data governance and cybersecurity strategies, with an inclusive approach.

The $100 million loan is for a 25-year term, with a 5.5-year grace period and interest based on Secured Overnight Financing Rate (SOFR).