- Tenor of the concession: Concessions may be for a fixed or variable tenor, based on the required investment, operation and maintenance costs, debt services, among other factors.
- Enforcement Authority: Ministry of Economy.
- Public Services: Public service concessions or licenses will continue to be ruled by their regulatory frameworks, notwithstanding the application of this regime mutatis mutandis.
- Selection process: Concessions shall be awarded following a call for bids, locally and/or internationally.
- Budget earmarks: Budget earmarks are required, if government funds are required for the concession.
- Amendments to the Concession Contract – economic and financial balance: Unilateral modifications to the Concession Contract made by the grantor related to the execution of the project must be compensated to the concessionaire to maintain the economic and financial balance of the concession. Likewise, the renegotiation is allowed, having to prove, by means of technical reports, the convenience for the public interest and the due legal, economic and financial analysis of the execution of the contract to be renegotiated. The renegotiation shall be carried out within twelve (12) months from the date of economic and financial imbalance and may be extended by agreement of the parties.
- Unilateral termination of the contract: The unilateral termination of the contract for reasons of public interest must be declared by the National Executive Power, with the prior intervention of the Ministry of Economy.
- Dispute settlement: Disputes shall be resolved, primarily, through a technical panel. Arbitration is allowed as well.
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For additional information, please contact Nicolás Eliaschev and/or Javier Constanzó.