| Work Detail |
The national government formalized a key reform to the public works contracting system, aiming to open competition to a greater number of companies and dismantle what it called a cartelized system in place for decades. Provision 24/2025 , signed by Soledad Vallejos Meana , head of the National Procurement Office , eliminates traditional restrictions such as the requirement for contracting capacity and allows companies with no prior experience in the country to participate. The measure, which is part of the state deregulation process led by the Minister of Deregulation and State Transformation, Federico Sturzenegger , is part of a series of changes initiated in February with the elimination of the Construction Registry. Under this new scheme, national and foreign companies will be able to apply for bids even without a history of public works, providing financial guarantees as an alternative. The new system establishes that for projects with fewer than 15,000 modules, a technical qualification will no longer be required, and the registration process through the Contractor Information System (SICO) is simplified . According to the Executive Branch, this platform replaces a paperwork burden considered excessive, which historically limited the entry of new competitors. Minister Sturzenegger hailed the measure as a turning point. “For 70 years, a closed distribution system prevailed among a group of companies, protected by a mechanism that artificially limited the construction capacity of each bidder. Today, those barriers are being torn down. Those from private or foreign construction are no longer excluded,” he stated on social media. The decision also has a political undertone. The official confirmed that the delegated powers granted by Congress through the Basic Law, which expire in 43 days, will not be renewed. “We knew it was a limited timeframe. Everything that can be done by decree will be implemented during this period. It is a profound reform of the State,” he stated. Among the measures to be announced soon will be a package of new decrees focused on the restructuring, merger, or closure of decentralized agencies , in line with the policy of administrative adjustment and reorganization promoted by President Javier Milei . The flexibilization of the contracting regime aims to generate greater competition, reduce costs, and prevent market concentration. However, sectors linked to public works warn that the elimination of certain technical filters could increase the risk of awarding contracts to companies lacking the real capacity to execute them, a key aspect in the implementation of these reforms. |
