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These are thirteen sections that represent 20 percent of the national road network but concentrate 80 percent of the traffic. Today they are in the hands of a state company. The State will define a maximum rate and a quarterly update system. There will be no fee but no subsidies either.
The projection is for savings equivalent to USD 6.1 billion in the next 15 to 20 years (Gustavo Gavotti)
The projection is for savings equivalent to USD 6.1 billion in the next 15 to 20 years (Gustavo Gavotti)
The government of Javier Milei hopes to launch its two-stage plan in December to have concessions ready by mid-2025 for more than 9,000 kilometers of national routes and highways in Argentina. These are 13 corridors that are currently managed by the State through the public company Corredores Viales SA, others that are expiring from the private company Caminos del Río Uruguay SA and new sections that have not yet been awarded. The projection is for savings equivalent to USD 6.1 billion in the next 15 to 20 years, according to official sources who spoke to Infobae.
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The "Red Federal de Concesiones" system contemplates a national and international public bidding process under the regime of Law No. 17,520, on concessions, and which was modified by Law No. 27,742 or "Ley Bases". The procedure will be in charge of the Ministry of Economy, led by Luis Caputo, and by the Agency for the Transformation of Public Companies, headed by Diego Chaher. This is not a model for building new routes and/or highways.
The first stage is made up of the Eastern Section (RN 12 and RN 14) and the Rosario-Victoria Connection. The call for tenders will be launched in December 2024, with the award scheduled for April 2025. The second stage, made up of sections I to X and some of the countrys main national routes, will be put out to tender in February 2025, with the award scheduled for July 2025.
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At the time of awarding the road, the company that offers the lowest rate to the user will be chosen, but there will be no fee to the State or subsidies for the companies. However, the toll prices will continue to be those in effect at the time of the award until the optimal conditions of transitability of the corridors are guaranteed: zero potholes, shoulder pads, horizontal and vertical signage, as well as lighting.
The State will define a maximum rate and a quarterly update system, which will be specified in the specifications of each tender. The rate tables will be indexed according to pre-established formulas that take into account various Indec indexes, although no further details were given.
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The “Federal Concession Network” system was presented on October 29 by the General Administrator of the National Highway Administration, Marcelo Campoy, and was attended by Caputo and the Secretary of Transportation, Franco Mogetta, and other national authorities. Also participating were representatives of business sectors, multilateral organizations and banks such as the Argentine Industrial Union (UIA), the Argentine Chamber of Commerce (CAC), YPF and the World Bank (WB) and the Inter-American Development Bank (IDB), along with business chambers and associations from the road, transportation and trade sectors.
First phase: Corridor 18 and the northeastern routes
The project will begin with the concession of two sections of Corridor 18, whose concession expires in April 2025 and which includes National Route 12, National Route 14 and the Rosario-Victoria Bridge. This corridor crosses Buenos Aires, Entre Ríos, Santa Fe and Corrientes, and represents a key connection between the center and the northeast of the country.
The government will call for tenders in December 2024, with the aim of awarding the section in April 2025, which will allow the concessionaire companies to take over the infrastructure immediately. This corridor is strategic due to the intensity of traffic it supports, both for freight transport and for private vehicles. According to the project, the company that wins the concession is expected to guarantee a series of conditions in the infrastructure before applying the agreed tariffs.
Second phase: expansion of the concession to an additional 8,470 kilometers
The second phase of the concession project covers a larger portion of the national road network, totaling 8,470 kilometers of routes, most of which are currently managed by Corredores Viales SA. This phase includes routes that were not previously under concession, such as National Route 33 in Santa Fe, National Route 18 in Entre Ríos, and a section of National Route 19 in Córdoba. This phase will be divided into eleven sections, and the bidding process will open in February 2025, with the award scheduled for July.
This set of routes represents 20 percent of the national road network but concentrates 80 percent of the networks traffic, which means that its maintenance is critical for the national economy and logistics. By granting the concession of these routes, the Government hopes to reduce maintenance costs and free up resources for other priority areas, ensuring that the concessionaires meet specific quality standards.
Structure of the new concession system
The proposed concession scheme introduces several features that aim to improve the management of routes and offer a better service to users. Key elements of the project include a self-sustaining concession. Under the terms, the companies that win the concession will not pay a fee to the State and will be financed exclusively by toll revenues. “This self-sustaining model reduces dependence on public funds, ensuring that the concessionaires are responsible for their financial solvency,” the Government explained.
In addition, the system will implement a “best offered rate” criterion to award the sections. Under this premise, the offer with the lowest toll rate for the user will be selected, in an attempt to reduce the direct cost of infrastructure services compared to previous concession systems. The rates will be subject to a quarterly update through pre-established formulas that will take into account various economic indices from INDEC.
To improve transparency and ensure competition, the award process will be open to the participation of actors not only from the road construction sector, but also from other sectors of the private sector, which could include technology and transport companies, among others. This, say the authorities, seeks to generate an environment of competition where both users and the State benefit.
Transitability conditions and tariff updates
One of the specific requirements that concessionaires must meet is to keep the routes in optimal conditions before applying new tariffs. This means that, before being able to adjust the tariffs, the companies will have to ensure patching, shoulder maintenance, signage and lighting in the concessioned section. This measure aims to ensure the quality of the infrastructure and avoid situations of abandonment or deterioration that affect users.
As for tariffs, each tender document will establish a tariff cap that concessionaires may charge, and this value will be updated quarterly. The update formula will take into account cost and inflation indicators published by INDEC, which will allow companies to adjust tariffs without abruptly affecting users.
Incorporation of technology and dynamic weighing
The new concession scheme also seeks to update the weighing systems to control the load of vehicles, avoiding premature deterioration of the routes caused by excess weight. In this sense, dynamic weighing controls will be incorporated and static control systems will be updated, which will allow for more efficient inspection. These controls not only protect the infrastructure, but also contribute to reducing long-term maintenance costs, avoiding disproportionate wear and tear on the routes.
In addition, dynamic payment methods will be implemented, promoting the use of TelePASE lanes and payment systems without stopping or free-flow. “This system will facilitate vehicular flow and reduce congestion, improving the experience of drivers and minimizing waiting time at tolls. Free-flow will be incorporated progressively in the sections with the highest traffic,” they said.
State control and auditing of concessions
The role of the National Highway Authority will be key in the supervision of concessions, since the agency will act as a control body and will be responsible for auditing the state of the roads and verifying that the concessionaire companies comply with the quality and maintenance objectives. Through regular inspections, parameters such as the state of the roads, signage and other essential elements for safety and transitability will be measured. This control system will guarantee that users receive a quality service, while allowing state intervention in case of non-compliance. |
