Argentina's road, water PPPs spark foreign interest

Monday, January 8, 2018

Argentina's US$26bn public-private partnership (PPP) public works plan is sparking the interest of foreign companies, particularly in the highway and water sectors, where the first tenders are expected to be launched.

In the case of the water initiatives, 79 companies presented proposals for a group of works involving total investments of US$9.5bn, of which 35 were made by foreign firms, according to public works ministry sources cited by state news agency Télam.

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These projects were presented back in August alongside documents for companies to make statements of interest.

Some of the multinationals that presented these statements include China's Gezhouba Group Corporation, PowerChina and CRCC; Spain's Aguas de Valencia and Abeinsa; Italy's Cooperativa Muratori and Salini Impreligio; and Germany's Ludwig Pfeiffer Hoch, among others.

In the group of water works, the most popular initiatives were for a wastewater treatment plant for the Escobar municipality of Buenos Aires province (US$350mn), a wastewater treatment plant and associated sewerage networks for La Matanza neighborhood in Buenos Aires (US$200mn), the underground north aqueduct of Buenos Aires (US$1.2bn), the Los Monos aqueduct in Santa Cruz province (US$1.2bn) and the fourth stage of the Salado river master plan (US$700mn).

As for the road initiatives, the transport ministry held its first consultation process on its road PPP program on Friday, which was attended by representatives of around 300 firms, the ministry stated in a press release.

These road projects entail US$16bn in investments and works on a total of 7,277km of roads, including the construction of 1,610km of highways, 3,310km of so-called safe routes, 324km of special works and 26km of bypasses. Rehabilitation and improvement works will be carried out on the remaining 2,007km.