GLOBAL - Ontario Teachers' Pension Plan, one of Canada's largest institutional investors, has announced its intention to bid for two Chilean water utilities.

The Chilean government agency CORFO, which manages economic development, is auctioning off its ownership stake in Essbio and Esval.

These companies manage wastewater collection and treatment, as well as the delivery of clean drinking water.

After the auction, Chile will still own 5% in both companies, maintaining veto power in vital business decisions such as transferring water rights.

Teachers' already owns three of Chile's water utilities, which account for one-third of the country's water services.

It holds 51.5% of Essbio and 69.8% of Esval, and wholly owns Aguas Nuevo Sur Maule (ANSM).

Teachers' equity in these companies dates back to 2007.

Vice-president of infrastructure Stephen Dowd said Esval was a well-run company operating businesses that would "generate predictable returns over many years".