Controversial Navigation License Tender in Argentina

Eduardo Plasencia criticizes the Argentine government's handling of a navigation license tender, citing insufficient preparation time and potential economic losses of over $7.5 billion.


Controversial Navigation License Tender in Argentina

The rivers in Argentina are not naturally navigable for modern vessels, according to Eduardo Plasencia, a former official of the Ministry of Transport during the presidency of Mauricio Macri. Plasencia emphasized that the depth and bends of the rivers present significant challenges for navigation, hindering efficient river transport.

Plasencia criticized Javier Milei's administration for continuously delaying the bidding process initiated in 1995. He pointed out that the sudden publication of different terms generated confusion and that the time allotted to prepare competitive proposals was insufficient. The lack of adequate promotion and exposure of the project was also mentioned as a problem.

According to Plasencia, the additional costs arising from the rivers' lack of depth could result in significant losses for the Argentine economy in the coming decades. Each ton produced in the country could incur an additional charge of US$3, which would accumulate to over US$7.5 billion in losses.

The proposed concession term by the current administration, set at 30 years, was questioned by Plasencia, who considered it excessive given the relatively low cost of the initial works. The Pensar Foundation, linked to the PRO and chaired by MarĂ­a Eugenia Vidal, also expressed concerns regarding the rushed bidding to privatize the Trunk Navigable Route.

Plasencia summarized the most controversial points of the bidding process, highlighting the urgency in its calling, the conditions that could favor certain bidders, and the lack of updates in the proposed projects. Critiques focused on the potential lack of transparency, difficulties for fair competition, and the potential additional costs that could fall on the export sector.