Argentina’s Highways Headed to Private Ownership
President Javier Milei’s administration recently announced plans to privatize Argentina’s national highway system, shifting management from state-owned Corredores Viales to private companies. The move aligns with Milei’s vision of reducing government involvement and fostering private sector growth.
Corredores Viales, currently running at a $30 million deficit, will now rely on increased toll fees for financial sustainability. The government believes that outsourcing highway management to private entities will lead to improved efficiencies.
The privatization initiative, set to commence in December 2024, will offer bidding opportunities to companies willing to meet specified standards for road improvement. This new approach aims to save approximately $5.6 billion while enhancing overall highway infrastructure.
Argentina has experimented with highway privatization in the past, albeit with mixed results. However, this latest effort signals a fresh commitment to reducing state intervention in economic affairs. The success of this transition could have far-reaching implications for the country’s economic recovery and future development plans.