La Derecha Diario Javier Milei's government announced the privatization of Corredores Viales
In 2023, the National Treasury, with the money of all Argentinians, had to allocate $301,000 million to sustain it.
The presidential spokesperson, Manuel Adorni, announced that the Government of Javier Milei will move forward with the privatization of the roads currently managed by Corredores Viales, with the aim of subsequently eliminating the state-owned company. The new concessionaires will implement toll collection to finance road maintenance.
"The National Government has decided to privatize the company Corredores Viales Sociedad Anónima under the public works concession model through tolls. This model will promote the development of infrastructure works through the participation of the private sector, which will be responsible for executing the necessary works and management at its own expense and risk in exchange for the right to charge a toll to users," explained Adorni.
Milei's Government has called for a public hearing at the end of February, where the so-called "Mercosur route," which covers about 670 kilometers (416 miles) and has been operated by the private firm CRUSA for the last three decades, will be auctioned.
Additionally, 8,470 kilometers (5,264 miles) of roads currently managed by Corredores Viales S.A. will be concessioned, including sections that have not been concessioned until now, such as National Route 33 in Santa Fe, National Route 18 in Entre Ríos, and the variant of National Route 19 in Córdoba. This phase of the process will be divided into eleven sectors.
Currently, Corredores Viales S.A. inefficiently manages ten highway sections in various provinces, including Santiago del Estero, Tucumán, Salta, Jujuy, Chaco, Buenos Aires, Corrientes, Misiones, San Luis, Córdoba, Santa Fe, and Mendoza, as well as the Riccheri Access to the City of Buenos Aires.
The state company is included in the list of companies subject to privatization according to Article 7 of the Law of Bases, along with Intercargo SAU, Energía Argentina S.A. (Enarsa), Agua y Saneamientos Argentinos S.A. (AySA), Sociedad Operadora Ferroviaria S.E. (SOFSE), and Belgrano Cargas y Logística S.A.
Meanwhile, Milei's Government stated that Corredores Viales, in a way, replicated the functions of the National Highway Directorate, which operates under the orbit of the Ministry of Economy's Transportation Secretariat. This decision is part of the plan to advance the privatization of the concessions of 9,145 kilometers (5,681 miles) of roads and highways across the country.
A Multimillion-Dollar Deficit
In 2023, the company recorded a massive negative economic balance, with a debt of $142 billion with suppliers and accumulated losses of $268 billion. As a result, the National Treasury, with the money of all Argentines, had to allocate $301 billion for its maintenance.
Despite the considerable state investment, 45% of the road network under its management, equivalent to about 3,400 kilometers (2,113 miles), is not in optimal conditions for circulation, which highlights the failure of the public management model in maintaining road infrastructure.
From now on, the responsibility to improve these sections will fall on the new concessionaires, who must fulfill these contractual obligations to obtain the right to charge tolls.
"We believe in a State that encourages the private sector to drive the country's infrastructure and economic activity, which is why we decided to abandon the role of road administrator and take on the role of promoter of private investment," stated the Government.
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