Work on the new Salvador hospital and geriatrics institution in the Providencia district of Chilean capital Santiago remains stalled, reported local newspaper Diario Financiero.
Construction of the new hospital was expected to begin in the first half of 2015.
Chile's public works ministry (MOP) had estimated work would begin in the first half of 2016, reported local newspaper Diario Financiero.
But the project, awarded to Consorcio de Salud Santiago Oriente in May 2014, has yet to obtain approval for its environmental impact assessment.
The consortium made up of Spanish firm Assignia Infraestructuras, Mexico's Constructura y Edificadora Gia and Chile's Constructura Cosal, has until August 9 to respond to comments on the EIA made by public authorities and the community.
In the case that authorities require a full environmental impact study, the project would be delayed even longer, the paper said.
The municipal government of Providencia only recently granted a building permit for the project, which involves rebuilding the current hospital.
With investments of US$284mn, the hospital will have 641 beds and outpatient center.
The project was awarded under the concessions model which has recently received widespread criticism for delays and overpricing of works.
The Quillota-Petorca and Curicó hospitals are two other projects that have faced delays and may have to be re-tendered as bids were above the government's budget.
The MOP recently reported it plans to draw up measures to improve the country's concession process and make it more efficient.