More Call for Bids coming...
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Privatization of the Paraná-Paraguay Waterway (Hidrovía)
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The Government announced the privatization of the Waterway (“Hidrovía”) with a 30-year contract. This is a bidding process that will allow broad participation from the most important companies in the world in terms of fluvial-maritime works.
The Tender will be conducted by the Undersecretariat of Ports and Waterways, and bids will be received until January 29, 2025.
The waterway is one of the country's greatest competitive advantages, as it handles 82% of Argentina's grain, flour, and oil exports, 91% of container cargo and 99% of automotive cargo.
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Time to compete: Deregulation of the Postal Service Industry in Argentina
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Through Decree 1005/2024, the National Government introduced significant changes to the postal service with the intention of promoting competition, simplifying bureaucratic processes, and adapting to technological advances. With the deregulation of the postal service, barriers to the entry of new competitors have been eliminated.
With this new provision, postal operators will be able to register electronically and free of charge . The measure affects the registration of letter, telegram and parcel delivery operators, as previously regulated.
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Argentina to Tender Gas Pipeline Expansion Project Connecting Neuquén to Buenos Aires
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The National Government has announced plans to launch a tender for a significant gas infrastructure project aimed at expanding the capacity to transport natural gas from the Vaca Muerta region in Neuquén to Buenos Aires. This initiative was declared a public interest project, and companies will be invited to bid, creating competitive opportunities in the sector.
The tender is expected to be launched in the coming weeks, marking a pivotal step in enhancing the nation's energy network.
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La Pampa opens for bids for “El Medanito” hydrocarbon field
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The Government of La Pampa has taken a significant step by submitting a bill to the provincial legislature to authorize a "National and International Public Tender" for the exploration, production, transportation, and distribution of hydrocarbons in the “El Medanito” area. The concession, set to last 25 years, is designed to ensure stability for investments while promoting the efficient use of the area's resources.
One of the standout features of this initiative is the requirement for 80% of the workforce to be local, ensuring that the benefits of the project directly impact the community. Additionally, Pampetrol, the state-owned local energy company, will retain a 20% stake in the operations.
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National Roads and Highways near to Privatization
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The National Government expects to carry out a two-stage plan for the concessions of more than 9,000 kilometers of national roads and highways in Argentina.
This will involve a national and international public bidding process under the regime of Law No. 17,520 on concessions, which was amended by Bases Law No. 27,742. The procedure will be led by the Ministry of Economy, headed by Luis Caputo, and the Agency for the Transformation of Public Companies, headed by Diego Chaher.
The call for bids will be launched in December 2024 and in February 2025.
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Privatization of Belgrano Cargas Train Company
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On October 23, 2024, the Government announced the privatization of the state-owned railway company “Belgrano Cargas y Logística”. The company is structured around three strategic freight lines.
For each of the company's three freight lines, seven different concession processes will be used: one concession for the tracks, two locomotive concessions with their respective drivers, two railcar concessions, and two additional workshop concessions.
The privatization will result in the creation of twenty one (21) new concessionary companies.
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Bases Law - RIGI and other Incentive Regimes
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More provinces are adhering to RIGI, others are still debating
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As anticipated in our June 2024 edition of What's News in Argentina, the Investments Incentive Regime (“RIGI”) represents the most significant initiative proposed by the National Executive Branch for the purpose of encouraging and promoting foreign and local direct investment in Argentina.
To date the following provinces have officially adhered to RIGI: (i) Río Negro, (ii) Jujuy, (iii) Mendoza, (iv) San Juan, (v) Chubut(*), (vi) Salta, (vii) Chaco, (viii) Misiones, (ix) Córdoba, (x) Catamarca, (xi) San Luis; (xii) Tucumán, (xiii) Corrientes, and (xiv) Entre Ríos.
Additionally, Neuquén, Santa Fe and the City of Buenos Aires have also made significant progress in discussions regarding RIGI´s adherence. We expect news in the coming weeks.
(*) Chubut adhered but excluded mining activities from RIGI's scope.
For further information regarding RIGI please refer to our Legal News Alert dated July 8, 2024 and our talk about RIGI.
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Buenos Aires enacts Strategic Investments Regime
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Through Local Law No. 15,510, the Government of the Province of Buenos Aires has approved the Provincial Regime for Strategic Investments (“RPIE”, after its Spanish acronym) applicable to the entire territory of the Province of Buenos Aires in order to promote value-added productive activity, increase exports, and substitute imports.
The eligible sectors include manufacturing, natural resources, services (such as tourism and logistics), cultural industries, health, and strategic projects. Such projects require a minimum investment of USD 5 million.
Incentives include partial tax exemptions on Turn Over, Property, and Stamp Taxes. Projects with investments ranging from US$5 million to US$50 million will be eligible for a 30% exemption for 5 years, while those with investments between US$50 million and US$200 million will benefit from a 25% exemption for 4 years. For investments exceeding US$200 million, the exemption will be 20% for 3 years.
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State-owned properties up for Privatization
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The National Government has initiated a large-scale public auction of state-owned real estate. Decree No. 950/2024, published on October 25, 2024, in the Official Gazette, empowers the State Property Administration Agency (“AABE”, after its Spanish acronym) to conduct the disposal of 309 identified real estate properties.
Notable properties include expansive rural lands such as the 130 hectare mountain area in Malargüe, Mendoza, and prime plots along the Paraná River near Rosario suitable for port infrastructure. Other key opportunities feature train station buildings in prominent locations such as the city of Buenos Aires and throughout Buenos Aires Province.
The auction process will unfold gradually, with initial sales anticipated before the year’s end.
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Mendoza takes a key step towards mining development
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After decades of rejection of mining, the legislature of the Province of Mendoza has approved Law No. 9.588 which establishes the authorization of certain Environmental Impact Statements (“DIA” after its Spanish acronym) that enables the exploitation of certain mining concessions in Mendoza.
The measure marks a turning point by positioning Mendoza as a province willing to explore the potential of mining within the limits of environmental respect and current regulations.
This initiative underscores the balance between economic development and environmental sustainability, showing that Mendoza is preparing to discuss the strategic role of mining in its economy.
For further information, please refer to news@pagbam.com, call (54-11) 4114-3000 or get in touch with us via WhatsApp.
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