| Work Detail |
The government of Javier Milei, together with the Minister of State Transformation, is about to implement significant changes to the public works law that could transform the bidding landscape in Argentina. The elimination of article 13 of law 13.064, which establishes a national registry of builders, will allow companies outside the construction sector to participate in bidding. This change seeks to increase competition and, according to the government, speed up infrastructure work. Until now, the registry has functioned as a filter that limits participation to large construction companies, granting a certificate of capacity that favors those who already have experience in the sector. With the new regulations, any company that declares its capacity to carry out a project will be able to apply, which could open the door to new players, including foreign companies. This is seen as a step towards dismantling what has been called the public works club, which has been criticized for encouraging cartelization and limiting competition. The government argues that the current structure of the registry discourages price cutting, as companies know that the project will be shared among themselves, regardless of their bids. By removing this requirement, it is hoped that companies will be forced to compete more aggressively on cost and quality. However, this change also poses risks, as it could allow companies without the appropriate experience to get involved in critical projects. In addition to the registry reform, the government has taken measures that directly impact the financing of public works. The return of one billion pesos that were destined for infrastructure projects has been requested, which has generated concern among builders about the availability of funds for future projects. This decision is added to the reduction of resources from the tax for an Inclusive and Solidary Argentina, which was originally destined in part for infrastructure works. In short, Mileis administration is seeking to dismantle the barriers that have kept large construction companies in a privileged position, while also facing significant challenges in terms of financing and the ability of new companies to meet the standards required in public works. Eliminating registration and opening up to new companies could radically change the construction landscape in Argentina, but also entails risks that will need to be carefully managed. |
