The Ministry of Economy established a framework for reviewing and adjusting ongoing infrastructure projects, transferring financial responsibility to provinces and municipalities when feasible, in order to optimize public spending amid the current economic crisis.
Within the framework of the economic emergency issued last December 21, The Government defined that the provinces must comply with a series of agreements to access funds that depend on the National State. The objective is “to achieve greater efficiency and effectiveness in the management of the State.”
Such as reported Ámbito At the end of September, the Government established that the provinces must comply with 7 signed agreements and in the event of non-compliance, measures must be adopted to seek the correction of said irregularity with the possibility that funds can be recovered.
Now, through Resolution 80/2024 published this Thursday in the Official Gazette, clarified the criteria to determine the future of infrastructure projects that were in progress at the time of its publication. Specifically, it seeks to establish a clear parameter to evaluate the “degree of progress” of a work, in order to decide whether or not to continue with its financing.
Key points of the standard
- Program Review: The resolution refers to a series of infrastructure programs created in previous years, focused on areas such as education, health, transportation and community development.
- Evaluation criteria: The main established criterion is the existence of a Provisional Acceptance Certificate of the Work. If this document was signed before the date of publication of the resolution, the work will be considered to have made significant progress and its continuity will be evaluated more closely.
If local entities cannot or do not want to assume the financing, a strict evaluation will be carried out on whether the project should continue, the official text indicates. This evaluation will be based on:
- Degree of progress of the work.
- Committed public interestthat is, the importance of the work for the community.
- Costs to continue execution, weighing whether it is viable or justified from a financial perspective.
The measure is based on the need to optimize public spending and ensure that resources are allocated to strategic projects with a high degree of progress.
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Implications of the regulations
- Slowdown of works: The resolution could generate a slowdown in the execution of numerous infrastructure projects, especially those that are in the initial stages. And the funds allocated to the affected programs could be redirected towards other government priorities. This could have a regional impact, since provinces that depended on these programs for the development of their infrastructure could be affected.
Finally, the official text recalls that the measure represents a change of direction in infrastructure policy. By establishing a more rigorous criterion for the continuity of projects, “It seeks to guarantee greater efficiency in the use of public resources“However, this measure could also generate friction and slow down the development of certain regions of the country.
Source: Ambito
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