Argentina starts process for privatization of Corredores Viales

Argentina starts process for privatization of Corredores Viales

Argentina has initiated a significant step towards modernizing its infrastructure and attracting private investment by launching the concession process for Corredores Viales, a major state-owned enterprise responsible for managing a substantial portion of the national road network. This initiative is part of a broader privatization effort led by the Milei Administration, aimed at reducing the state's role and liberalizing the economy.

The government has opened national and international bids to concession approximately 20% of Argentina’s roadways, covering over 9,000 kilometers of national roads. This Federal Concession Network spans fourteen provinces and includes some of the country’s busiest traffic corridors. The concession contracts will last between 20 to 30 years, with private companies assuming the management of these roads [1].

The concession process is regulated under the Public Works Concession Law (No. 17,520), as amended by the Bases Law (No. 27,742). The road network will be concessioned in three stages, with Stage I currently open for bidding until September 8, 2025. Preliminary bidding materials for Stages II and III are already available, and the government aims to complete the bidding process and concession for each road segment by the end of 2025 [1].

The bidding process is open to Argentine companies as well as foreign entities, regardless of whether they maintain a registered branch in Argentina. Prospective bidders must first be prequalified by the Argentine Concession Commission, which requires submission of documentation related to their legal standing, technical capacity, financial solvency, and experience. Only prequalified bidders are permitted to submit economic offers for evaluation by the Commission [1].

Key bid conditions include the requirement that bidders incorporate an Argentine special purpose entity to enter into the concession contract, complete their own due diligence of the project, disclaim any claims or recourse against the granting authority, provide a financial guarantee to ensure completion of the project, and accept certain obligations for road maintenance/improvements and a staged implementation of electronic “free flow” tolling stations [1].

The Argentine government is offering bidders certain risk protections, including the ability to engage in contract renegotiation in cases of economic volatility that impact the financial viability of the project. This renegotiation may include amendment of the concession term, tariff adjustment, rescheduling or curtailment of investment obligations, direct economic compensation, and other measures to restore balance [1].

This initiative forms part of President Milei’s broader push to decrease the role of the state and liberalize the Argentine economy. The Law of Bases and Starting Points for the Freedom of the Argentine People (No. 27,742) authorized the privatization—either fully or through long-term concession contracts—of eight major state-owned enterprises, including Corredores Viales S.A. [1].

The concession of more than 9,000 km of national roads marks a turning point in Argentina’s infrastructure policy. For investors, it represents a strategic opportunity to enter the market, backed by a clear regulatory framework and a government committed to promoting deregulation.

References:
[1] https://wsclegal.com/9-000-km-of-roads-under-concession-opportunities-in-the-era-of-milei/