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Argentina Procurement News Notice - 97402


Procurement News Notice

PNN 97402
Work Detail The National Highway Administration (DNV) faces a critical funding shortage after receiving only USD 18 million of the USD 129 million required by law for this year. The funds come from the fuel tax, which by law must be specifically allocated to the maintenance and expansion of Argentinas 40,000 kilometers of national highways. Civil engineer José Rizzo, a National Highway Administration official and member of the National Committee of Road Users (Conaduv), confirmed that the amount received is insignificant compared to operational needs, such as road maintenance, expansion works, and winter operations in Patagonia and mountainous areas. He also warned that 65% of the national road network is in fair or poor condition, and that its deterioration is worsening due to a lack of funding for repairs and technical surveys. Conaduv released a report detailing that the fuel tax has raised USD 900 million so far this year. Of that total, 28%—equivalent to USD 129 million—was supposed to be allocated to the Highway Administration, as established by the current trust fund. The lack of transfer not only paralyzes essential works but also increases the risk of road accidents in a country that records 7,000 deaths and nearly 100,000 injuries in traffic accidents annually. In this context, Rizzo also criticized the proposal to grant concessions to private companies for more kilometers of roads, arguing that this model entails costs up to 30 times higher than existing state maintenance through private contracts. He also clarified that the National Highway Administration has not directly executed construction projects since the 1960s, but rather hires construction companies through public bidding. Finally, the engineer warned that postponing road maintenance not only exponentially increases repair costs but also seriously compromises the movement of people and goods throughout the country. Rizzo also questioned the official argument that tolls are paid only by direct users, explaining that, in practice, the cost is passed on to the entire production and consumption chain.
Country Argentina , South America
Industry Construction
Entry Date 03 May 2025
Source https://www.construar.com.ar/2025/04/de-los-usd-129-millones-que-debian-llegar-a-vialidad-para-reparar-rutas-el-gobierno-solo-envio-18-millones/

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