Reform of the Administration - Privatizations

                 1. Public Sector Reform

The Bill for the Bases and Starting Points for the Freedom of Argentines declares, among others, the administrative emergency until December 31, 2025, and promotes the reorganization of the Public Sector.

To implement the reform of the Public Sector, the Bill grants broad authority to the Executive Branch, which, among other powers, may:

 

• Centralize, merge, transform, reorganize, dissolve, or suppress, totally or partially, any agency or decentralized entity created by regulations with the hierarchy of law.

 

• Intervene all agencies or decentralized entities of the Public Sector, with the sole exemption of the national universities.

 

2. Public Procurement Framework

The Bill delegates to the Executive Power the enactment of a new procurement framework applicable to the entire Public Sector, which will establish the regulation of each type of contract.

It also provides for the inclusion of alternative dispute resolution procedures, such as a) conciliation, mediation and arbitration mechanisms; b) technical panels; and c) independent administrative tribunals.

 

3. Governmental contracts currently in force

The Bill entitles the Executive Power to renegotiate or terminate, for emergency reasons, contracts of any kind entered into prior to December 10, 2023, by any agency or decentralized entity of the Public Sector, respecting the property rights of the contractors. For such purposes a case of force majeure shall be deemed to have arisen.

 

4.      Privatization of State-Owned Companies

The Bill declares "subject to privatization", under the terms and with the effects of Law No. 23.696 of Government Reform, a total of forty-one state-owned companies and corporations, which are the following:

• Administración de Infraestructuras Ferroviarias S.E.

 

• Administración General de Puertos S.E.

 

• Aerolíneas Argentinas S.A.

 

• Agua y Saneamientos Argentinos S.A.

 

• Banco de Inversión y Comercio Exterior S.A.

 

• Banco de la Nación Argentina

 

• Belgrano Cargas y Logística S.A.

 

• Casa de Moneda S.E.

 

• Construcción de Viviendas para la Armada Argentina S.E.

 

• Contenidos Públicos S.E.

 

• Corredores Viales S.A.

 

• Correo Oficial de la República Argentina S.A.

 

• Desarrollo del Capital Humano Ferroviario SAPEM.

 

• Dioxitek S.A.

 

• Educ.ar S.E.

 

• Empresa Argentina de Navegación Aérea S.E.

 

• Empresa Argentina de Soluciones Satelitales S.A.

 

• Energía Argentina S.A.

 

• Fábrica Argentina de Aviones “Brig. San Martín” S.A.

 

• Fabricaciones Militares S.E.

 

• Ferrocarriles Argentinos S.E.

 

• Innovaciones Tecnológicas Agropecuarias S.A.

 

• Intercargo S.A.U.

 

• Nación Bursátil S.A.

 

• Nación Reaseguros S.A.

 

• Nación Seguros de Retiro S.A.

 

• Nación Servicios S.A.

 

• Nucleoeléctrica Argentina S.A.

 

• Operadora Ferroviaria S.E.

 

• Pellegrini S.A.

 

• Playas Ferroviarias de Buenos Aires S.A.

 

• Polo Tecnológico Constituyentes S.A.

 

• Radio de la Universidad Nacional del Litoral S.A.

 

• Radio y Televisión Argentina S.E.

 

• Servicio de Radio y Televisión de la Universidad de Córdoba S.A.

 

• Talleres Navales Dársena Norte S.A.C.I. Y N.

 

• Telam S.E.

 

• Vehículo Espacial Nueva Generación S.A.

 

• Yacimientos Carboníferos Fiscales Empresa del Estado

 

• Yacimientos Mineros de Agua de Dionisio (YMAD)

 

• YPF S.A.

The Bill provides that, in order to proceed with the privatization of other state-owned companies, different from those mentioned above, Congress approval must be obtained.

The Bill abrogates the conditions established by Law No. 24,804 of Nuclear Activity for the privatization of Nucleoeléctrica Argentina S.A. In addition, it eliminates the provision of such law requiring the Federal Government to keep a share with the right of veto in the companies that are incorporated within the framework of the privatization of the nuclear power generation, providing instead that the Executive Power "may" keep a share of veto in the decisions that imply the closing of the activity.

 

5.         Regulatory Quality Policy

The Bill also promotes the implementation of a regulatory quality policy, which includes simplification, digitalization, and reduction of administrative bureaucracy, promoting transparency and due administrative process, as well as the relief of burdens and costs.

 

6.         Amendments to the Federal Law on Administrative Procedure

The Bill also includes an ambitious project of reforms to the Federal Law on Administrative Procedure with the purpose of strengthening the guarantees of individuals before the Public Administration.