MercoPress. South Atlantic News Agency

Chile’s quake death toll, 700 and economic damage: 18% of GDP

Interior Minister Rodrigo Hinzpeter announcing the extent of the tragedy

The Chilean government has updated the death toll from the Feb. 27 earthquake, saying 700 people lost their lives during or following the quake. Interior Minister Rodrigo Hinzpeter said just over 500 are confirmed dead, with another 200 missing.

“We want to find [the missing] alive, but as time passes, that possibility diminishes,” said Hinzpeter. “The worst damage the earthquake caused is the loss of life, because it’s irreparable.”
But he added the economic consequences are devastating.

“In economic terms this is the worst disaster in Chile’s history”. He put the cost of rebuilding, as President Piñera and earlier authorities have, at 30 billion US dollars, of which between 5 billion 8 billion will come from insurance companies.

The economic damage amounts to 18% of GDP. The rebuilding of the 14 destroyed hospitals alone will cost between 3.6 and 4 billion USD. There are 4,000 destroyed or badly damaged schools stretched out virtually the length of the country.

The Piñera administration and the Congress are searching for ways to pay for the rebuilding. Hinzpeter said consideration was being given to increasing taxes on mining companies, and Sen. Evelyn Matthei is pushing increased taxes on alcohol and cigarettes.

Meantime the Chilean Public Works Department said that after coordinating help for families affected by the earthquake, the government is now focusing its efforts on three main areas: the reconstruction of main highways and bridges, the normalization of water delivery and the rebuilding of the country’s many industries that were destroyed or damaged.

This week, the Department of PW created a committee to be in charge of the whole process. The current minister, Hernán de Solminihac, told local newspaper El Mercurio that the main priority right now is to work on the nation’s connectivity so that sending help and personnel through the country is “as efficient, fast and safe as possible”.

In addition, the Chilean Treasury Department has announced that the 2010 national budget will be revised to finance the reconstruction.

Authorities have emphasized the fact that a number of lessons should be learned from the catastrophe, since many of the damaged structures seemed to be of “great quality” or were brand new and allegedly “earthquake proof.”

By Chastity Dillard and Beatriz Leon M. – Santiago Times