President Javier Milei’s government has unveiled a plan to privatize Argentina’s national highway system. The administration wants to shift road management from the state-owned Corredores Viales to private companies.
This change fits with Milei’s goal of shrinking government involvement and encouraging private business growth. Manuel Adorni, speaking for the president, explained that Corredores Viales is losing $30 million.
In the past, the Treasury covered these losses, but now the company relies on higher tolls to make ends meet. Adorni said the company wasn’t meeting basic operating and maintenance standards, so they’re looking to private businesses for better results.
The privatization will use an international bidding system open to any company with proper insurance. Adorni called this a new step towards open highway management.
The government will share information for interested companies on ministry websites soon. Companies that win bids can only charge tolls after they improve the entire road to meet standards. The government thinks this plan will save $5.6 billion.
Argentina’s Highway Privatization
Bidding will happen in two parts: December 2024 for parts of Corridor 18, and February 2025 for 8,648 kilometers across 12 sections that handle 80% of the country’s traffic.
Argentina tried highway privatization before in the 1990s. However the 2001 economic crisis and later policy changes messed up that system.
Different governments have tried various approaches, including mixed public-private systems, but these didn’t work well.
This new attempt at privatization shows the government wants less state control of the economy and more private business involvement.
As this plan moves forward, some people will likely support it while others oppose it. How well this works could greatly affect Argentina‘s economic recovery and future growth plans.
Privatizing Argentina’s highways marks a big change in how the country manages its roads. This decision could set a new direction for Argentina’s economic future.
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