New Highway Concession Tender in Argentina: A Strategic Opportunity for Investors

New Highway Concession Tender in Argentina – Implications for Investors

The Argentine government has announced the launch of a national and international public tender to privatize more than 1,800 kilometers of strategic roads and highways, as part of the second stage of the Federal Concessions Network (RFC). This initiative, led by the Ministry of Economy, aims to transfer road infrastructure management to the private sector under a self-financing model supported by user fees, without state subsidies.

Sections Included in This Stage 

The two corridors up for tender are:

• Southern–Atlantic–South Access Corridor (1,325 km): Includes National Routes 3, 205, and 206, as well as the Riccheri, Newbery, and Ezeiza–Cañuelas highways.
• Pampa Corridor (547 km): Covers National Route 5, between Luján and Santa Rosa.

These corridors are part of a broader plan encompassing 4,400 km of national routes, divided into eight sections to be awarded progressively.

Program Objetives

The RFC aims to:

• Modernize the road network through private investment.
• Reduce public spending on maintenance.
• Improve road safety and quality.
• Establish a transparent, competitive, and subsidy-free management model.

This approach marks a structural shift in infrastructure policy, moving away from traditional, state-financed public works.

Political Context and Background

The announcement comes amid high demand from provincial governments to reactivate infrastructure projects. However, the Executive Branch has reaffirmed that public works will be financed exclusively by private capital.

In the first stage of the RFC, held in October, seven bids were received to operate 741 km of road corridors. Private sector interest was strong, and the Investment and Foreign Trade Bank (BICE) offered credit lines of up to ARS 56 billion, demonstrating the viability of the model.

Implications for Investors

For potential investors, this tender represents a concrete opportunity to participate in the modernization of Argentina’s road infrastructure under a concession scheme that offers:

• Attractive financing: UVA +2% rates with terms of up to six years.
• Stable revenue model: Toll collection as the primary source of return.
• Strategic participation: Access to high-traffic, logistically relevant corridors.
• Fiscal savings for the State: Strengthening long-term sustainability.

Additionally, the regulatory framework seeks to ensure transparency and competitiveness, fostering institutional confidence among both domestic and international investors.

Key Considerations

• Rigorous technical and financial evaluation: Bidders must submit solid proposals covering investment, maintenance, and operation.
• Efficient management: Private operators are expected to enhance service quality and user experience.
• Risk and return balance: As with any concession scheme, operational risk, projected demand, and regulatory stability will be essential factors for profitability.

Conclusion

The second stage of the RFC marks a significant step forward in Argentina’s infrastructure strategy. For investors, it represents a chance to engage in a modern, self-financed, and internationally aligned road management model. From both a legal and business standpoint, specialized advice will be key to ensuring a solid and strategic participation in these tenders.