The Government Has Created A Trust And A Program To Protect The PPP Public Works Financing

Author:Alfaro -Abogados

The Government has created a Trust and a program to protect the PPP public works financing

As a result of the uncertainty created by the corruption investigation in public works, a trust will be put in place that will ensure its financing and unlock the short-term loans that were negotiated in the PPP (Public-Private Partnership) bids. The trust will allow the contributions of the banks to finance the works, go through this state trust to the companies.

This trust will be a tool to give financial liquidity to public works, will be managed by the Minister of Transportation, and Banco Nación will provide a capital of 200 million dollars for companies that have the concession of the six road corridors already tendered and another 30 billion pesos to discount the work certificates. The contribution that Banco Nación will make to the operation of this trust, will be accompanied by other private banks.

Up to now, the PPP has granted six road corridors, with an investment of U.S. $6 billion. Among the companies involved that won the award of PPP works are José Cartellone Construcciones Civiles, Helport (whose majority shareholder is Eduardo Eurnekian), and Vial Agro, by businessman Pablo Quantín.

The Minister of Transportation confirmed that for the time being the companies that are being investigated in the case for alleged bribes in public works will continue to lead the works that have been awarded and that until there is a judicial definition may continue to be admitted to submit bids.

This is how the Government trust will work:

This trust acts as an intermediary between the financial sector and the construction companies to...

To continue reading