• Scope: The newly enacted Private Initiative Regime shall apply to public work contracts, public works, services and infrastructure concessions and PPP contracts.
  • Enforcement authority: Ministry of Economy.
  • Submission of Private Initiatives: Initiatives may be submitted (a) following a call for bids for projects considered to be of public interest; or (b) with no call for bids, in which case the promoter of the private initiative (the “Promoter”) shall provide substantiated reasons for the private initiative to be deemed as of public interest.
  • Private Initiatives Information: The private initiatives shall detail the following information:
    • Technical and financial background of the Promoter.
    • Description of the project.
    • Location, area of interest and related benefits.
    • Estimated demand and associated annual growth rate.
    • Analysis of the relevant legal aspects considering, among other factors, its area characteristics, implementation zone, and areas of interest.
    • If applicable, a description of the works to be performed and/or services to be provided, with their technical analysis.
    • Analysis of the technical, economic, and financial feasibility.
    • Estimated CAPEX and OPEX.
    • Analysis of the economic conditions associated to the contract, such as fees and tenor of the concession.
    • Financing.
    • Description of the most material risk factors related to the Private Initiative.
    • Environmental impact studies.

    The Privative Initiative shall be backstopped by a guarantee, in the form of an insurance bond or letter of credit, in a guaranteed amount equal to 0.5% of the estimated investment; provided, however, that this guarantee may not be required if the Promoter accredits that the guaranteed amount has been incurred in the preparation of the private initiative.

  • Filing of the Private Initiative – Public Interest Declaration: The Enforcement Authority is enabled to request additional information or documentation, and shall have a term of sixty (60) days, extendable for the same term according to the complexity of the project, to prepare a non-binding report on the public interest and the eligibility of the proposal, considering its technical, economic and financial feasibility. If the Enforcement Authority considers that the proposal is as of public interest, it will submit the non-binding report to the National Executive Power, who will decide whether to grant such qualification or not, within a term of ninety (90) days, extendable for the same term according to the complexity of the project. If the initiative is rejected, the project Promoter will not be entitled to any compensation.
  • Call for Bids: the call for bids shall be done within sixty (60) days following the declaration of public interest.
  • Promoter’s Rights:
    • The Promoter’s bid shall have priority with respect to other offers if the difference between each offer’s price is no greater than ten percent (10%). Tied parties shall have the right to improve their offers if the offered price’s difference is between ten (10%) and fifteen percent (15%).
    • If the Promoter is not selected as the preferred bidder, the Promoter shall have the right to be reimbursed for the direct costs and expenses from the preferred bidder (such reimbursement will not exceed 1% of the bid, increasable to 3%).
    • Assignment of rights to the private initiative is allowed for the benefit of the Promoter.
  • Abrogation of Decree 966/2005: the prior Private Initiative Regime approved by Decree 966/2005 is abrogated.

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For additional information, please contact Nicolás Eliaschev and/or Javier Constanzó.