New regulations on Public Private Partnerships (PPP) in Argentina

3 July 2020 |

The Government of Argentina, through Decree 987/2018 (the “Decree 987”), that was recently published, has modified Decree 118/2017 (the “Decree 118”), that  regulates Public-Private Partnership Contracts Act Nº 27,328 (the “Act  27,328”).

We will detail next the relevant modifications that have been included:

Definition of “Convening Authority”: Decree 987 sets forth that in the case of  the National Public Administration, the Chief of the Cabinet of Ministers, the Secretary General to the Presidency of the Nation or the Minister whose jurisdiction corresponds to the investment project or the Secretary of Government to whom any of the former delegates the performance of the duties inherent to such capacity, shall be the Convening Authority. As regards the other entities of the National Public Sector, the Higher Authority of the entity shall act as the Contracting Entity.

Trusts created within the framework of section 8 of Act 27,328: The trusts created within the framework of Act 27,328, according to Decree 118 were within the orbit of the Convening Authority or of  the Ministry in which jurisdiction the contracting entity acts. Decree 987 includes the Government Secretariats within this orbit.

Appointment of Evaluating Commissions: Even though Decree 987 provides that the members of the Commissions that Evaluate the offers, as well as the respective deputies, shall be appointed by the Convening Authority, it eliminates the chance that this appointment be made through an administrative act, as set forth by Decree 118.

Execution of the PPP Contract: Decree 118 set forth that the agreement would be formalized with the execution of the PPP Contract through the term to be provided for in the Bidding Conditions, and the conditions and requirements to perform said execution were listed. Likewise, it was determined that otherwise, the Convening Authority would not execute the PPP Contract and said award would be  invalidated and the only penalty would be the loss of the bid bond.

Decree 987 sets forth that in case of non-performance, the Contracting Entity would not execute the PPP Contract and the Convening Authority will invalidate said award and the only penalty would be the loss of the bid bond.

Should you need further consultations and additional information, please contact:

Luis A. Erize | Hernán M. Oriolo | Federico O. Valiño

Av. Eduardo Madero 1020, 5th floor | C1106ACX

Buenos Aires | Argentina

(5411) 4516-1500