Government privatizes management of 3,900 km of national routes

On Monday, the Argentine government privatized the management of 3,900 kilometers of national routes across 11 provinces. Eight companies were awarded contracts to operate and maintain these roads for 20 years. The decision comes as the state budget for national routes has plummeted by nearly 80% since President Javier Milei took office in 2023, according to the Civil Association for Equality and Justice (ACIJ).

The current budget of AR$563 billion (US$371 million) is the lowest in over three decades, and six out of every ten kilometers of these roads are in poor or fair condition. The privatization process was formalized in a resolution issued by the Economy Ministry and published in the Official Gazette. The eight companies will be responsible for building, managing, expanding, maintaining, and repairing the allocated routes, and can seek additional income through tolls.

This action is part of a larger plan launched in 2025 to privatize the administration of 9,000 kilometers of strategic national routes, which account for approximately 80% of the country's traffic. The National Highway Administration will oversee compliance with the contracts, aiming to ensure road safety and adequate service levels for users.

With the privatized routes now managed without government subsidies, the government hopes to move towards a more efficient system focused on improving the quality of the National Highway Network. President Milei's administration has significantly reduced public works spending, with investment in such projects dropping by 84% in July 2024 compared to the same period in 2023.

This "chainsaw" approach to fiscal management reflects the president's commitment to cutting public spending to the minimum necessary.