Santiago de Chile, city with 5,5 millions inhabitants, has undergone important changes in its public transportation system during the last twenty years. From a first moment of total deregulation, where results were rather disappointing in terms of quality of service, excess of supply, high fares and pollution, a process of tendering and concession of service within the central area of the city was implemented. After six years of this new practice, the public transport system of the city has shown a notorious progress through reduction of excessive fleet and pollution, stabilization of fares and rising of quality of services. This paper presents and analyses both two periods (deregulation and re-regulation), showing the procedures and results of the decision of putting out to tender the service.
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