Particle.news

Download on the App Store

Argentina Opens Bids for Milei’s First Road Concession as State Bank Funds Upfront Works

A state bank stepped in with fiduciary guarantees, offering low‑rate funding to cover most initial investments after private builders refused to risk their own capital.

Overview

  • Envelope opening for the Ruta del Mercosur and the Rosario–Victoria bridge drew six consortia, largely established road contractors, according to the bid session on October 8.
  • BICE formalized a financing scheme days before the opening, providing up to ARS 56,000 million or 70% of the required investment at UVA +2% with up to six years to repay and one year of grace.
  • The package operates through a fiduciary guarantee and funding structure that enabled companies to submit offers without fronting full pre‑toll works from their own balance sheets.
  • The move contradicts earlier government assurances that concessions would proceed without public money, inviting legal scrutiny over a late change to tender conditions.
  • The corridor’s prior concession ended in April with tolls lifted and about 500 workers left in limbo, while the projected car toll of roughly ARS 4,200 per 100 km is viewed by firms as insufficient for the scale of repairs.