The infra contracts that could be hit by Milei's 'omnibus' bill

A bill President Javier Milei submitted to Argentina's congress could affect ongoing large infrastructure projects as it contains a provision that allows the executive to review or rescind contracts that were signed before the government term began on December 10. 

This so-called omnibus bill is aimed at increasing economic freedom and scale back state presence. It declares an economic emergency, which allows the executive to renegotiate or rescind “contracts of any kind that create obligations on the State’s behalf,” regardless of which entity signed the contract. 

An investment map by the now dissolved public works ministry was last updated four days before Milei took office and lists 2,185 projects worth 3.11tn pesos (US$3.84bn) that are in progress.

After taking office, Milei created an infrastructure ministry, which absorbed the competencies of the ministries of public works, housing, transport and communications.

The biggest projects with public funding and in execution on the list are:

– Colorado river aqueduct and complementary works for Santa Rosa (La Pampa province): Works on the 32.5bn-peso project began in 2023, with the contractor being the Río Colorado JV, comprising Supercemento, Rovella Carranza, C&E Construcciones.

– Bahía Blanca access network, national routes 3 and 33 (Buenos Aires province): Demanding 37.4bn pesos, works started in 2018 and reached 44% completion by December 6. Contractor is a joint venture comprising Centro Construcciones, Tecnipisos and Esuco.

– San Javier aqueduct, San Javier-Tostado section (Santa Fe province): Construction started in 2023 and will require 94.1bn pesos. The joint venture in charge comprises Supercemento, Rovella Carranza, Benito Roggio e Hijos and Centro Construcciones.

– National route 158, San Francisco-Río Cuarto stretch (Córdoba province): The stretch is 53% complete and will demand 35.6bn pesos. The contract is held by a joint venture comprising Benito Rogio e Hijos and Decavial.

– National route 19, San Francisco-Cañada Jeanmarie stretch (Santa Fe province): Estimated to cost 33.5bn pesos, completion reached 32.3%. A joint venture formed by CRZ Construcciones and Perales Aguiar is carrying out the works.

– National route 3, San Miguel del Monte-Gorchs access stretch (Buenos Aires): The 33.1bn-peso contract was awarded to Sacde, which has achieved 11.5% completion.

– La Rioja province hospital: Astori started construction of the 63.1bn-peso project this year.

– Expansion of General Belgrano potable water plant (Buenos Aires): Expected to cost 38.1bn pesos, progress reached 49%, with a JV between Tedagua and Constructora San José in charge of works.

– National route 9, Santiago del Estero-Termas de Río Hondo access stretch (Santiago del Estero province): A joint venture between Benito Roggio e Hijos and Mijovi holds the 41.3bn-peso contract and achieved 52.8% progress.

– Lomas underground aqueduct (Buenos Aires): The 46.4bn-peso contract was awarded to CMC Di Ravenna. The project is 66% complete.

– Buen Ayre highway section I (Buenos Aires): Sacde is in charge and reported 85.6% progress. Total investment is 35.4bn pesos.

– Buenos Aires-La Plata highway, Ensenada distributor-provincial route 11 intersection stretch: The 89.9bn-peso contract was awarded to a joint venturebetween Esuco and Helport, which reported 12.9% progress.

The omnibus bill also targets for privatization government agencies like Buenos Aires water utility AYSA, which awarded some of these contracts, and it includes provisions to boost infrastructure concessions.

But congressional approval is not certain, since the ruling coalition lacks majorities in both chambers.

The country’s construction sector has been highly critical of Milei’s infrastructure agenda, doubting its feasibility and warning that it could lead to thousands of layoffs if current contracts are suspended.