The first part of the regulations that were finally approved in June was published on Monday. This document describes how the privatization process will be carried out, which is now official.
Almost a month after the promulgation of the Law Baseshe Government regulated the first part of the legislation, with the aim of advancing the reforms that President Javier Milei proposed to carry out at the beginning of his administration. Within this framework, the privatization of public companies is contemplated.
The regulation was made effective through the Decree 695/2024 published in Official bulletin. In this way, it accelerates the implementation of the regulations, which was the result of a long process in Congress, which included a first failed attempt in Congress to finish closing it with negotiations against the clock by Guillermo Francos.
Which companies will be privatized according to the Bases Law?
In this regulation, they implemented the scheme provided for the partial or total concession or sale of the following companies:
- Argentine Energy
- Intercargo
- AySA
- Belgrano Cargo
- Railway Operating Company (SOFSE)
- Road Corridors
- Nucleoelectrica Argentina SA (NASA)
- Coal, Railway, Port and Energy Complex managed by Yacimientos Carboníferos Río Turbio (YCRT).
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YCRT
Bases Law: what will be the process for privatization
In this way, it was established that the minister or secretary of the Presidency in whose jurisdiction the company or corporation to be privatized is located must submit to the Executive Branch a report specifying the specific proposal linked to the most appropriate procedure and modality to make the privatization effective.
This document must include the following points: the total or partial nature of the proposed privatization and its rationale; the procedural alternatives that are considered appropriate to the case; the modalities of those stated that are considered appropriate to materialize the privatization; the selection procedure that is expected to be used and the estimated timeframes for each of the stages of the privatisation procedure; and the eventual proposal for granting the preferences referred to in article 16 of Law No. 23,696 and the applicability, where applicable, of a Shared Ownership Program, specifying the classes of acquiring subjects and the proportion of the share capital included in the program. A copy of this report will be sent to the Bicameral Commission of Congress.
Once the Executive grants the corresponding authorization, the official will be able to initiate the procedures leading to privatization. After this, the Government specified the steps to follow to call for bids from the private sector.
“Prior to the formalization of the contracts that arise from the procedures provided for in this Chapter, the Application Authority must give intervention to the Treasury Attorney’s Office of the Nation and the General Comptroller’s Office of the Nation in the corresponding actions,” clarifies the regulation and adds that in the event that If the Attorney General makes any observations or suggestions regarding the contract, a new report must be prepared.
Source: Ambito
