The new authority will have the power to develop the country’s entire concession infrastructure process, from the evaluation of the idea to the end of the development phase.
It will also deliver the "Infrastructure, Development and Inclusion Agenda, Chile 30.30", plus develop an investment portfolio for five years.
Bachelet said: "It is a very important step in the momentum that we have given during this government to the concessions system, a system that, for almost 25 years, has allowed public and private efforts to achieve investments and infrastructures which are fundamental for the development of our country."
The authority’s new head will be named by the Ministry of Public Works and Finance.
Infrastructure investment is expected to be $5bn, of which at least $3bn is expected to be awarded by the end of the president’s term in office.