Argentine government extends Hidrovia do Paraná concession by 90 days

Days before the end of the largest Argentine public works contract in the last 25 years – the dredging and meetings of the Prata and Paraná rivers, under the responsibility of Hidrovía SA – the Argentine government decided to extend the concession, in principle for 90 days. “This extension will be temporary, and we may revoke it at any time,” clarifies the resolution.

The purpose of the Public Works Concession Contract is to redesign tasks and to modernize, expand, operate, and maintain the signaling system and waterways – as approved by Decree nº 253/95 with its amendments and addendums. The current concessionaire will continue for NINETY (90) days after the contract’s expiration.

It also clarifies that this decision can be revoked “without generating subjective right, right of expectation, or any invocable precedent in favor of the operator. Nor will it generate recognition of any amount for eventual revocation in advance of the anticipated period”.

Until hours ago, it was unknown whether the companies that make up the concessionaire (the Belgian Jan De Nul, in charge of preserving the depths and widths of the channels; and the local Emepa, which performs the meetings of the rivers) would continue to operate.

The Ministry of Transport had indicated that “on April 26 it will be announced” how to proceed, but the death of Minister Mário Meoni delayed the decision.

It is assumed that at least Jan De Nul will continue to perform maintenance within the sector, probably with temporary contracts. There is an operational front to be solved: the river is dynamic, sedimentation is constant, and there must be ongoing maintenance. Otherwise, ships will have to hold less in their holds, and freight will become more expensive.  It is also necessary to ensure navigation safety and avoid accidents.

If there had been a bidding process – this process requires 12 to 18 months – other operators could have come on the scene, whether they were Belgian, Dutch, or Chinese. There were proposals, but they were unsuccessful.

Source: Nuestromar

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