Call for Bids for the Concession of the Eastern Section and the Connection Section of the Federal Concessions Network – Stage 1
On June 3rd, 2025, the Ministry of Economy issued Resolution N° 29/2025, launching the National and International Public Tender for the concession of the Eastern and Connection Sections of the Federal Concessions Network – Stage 1 (the “Tender”). In addition, approval was granted for the general and specific terms and conditions, the general and specific technical specifications, and the draft concession agreement (collectively, the “Tender Documents”).
Below are the key aspects of the call:
1. General Conditions of the Tender
The Tender will follow a multi-stage process. Bids must be submitted through the Contra.Ar system, and the deadline for submission is August 5th, 2025.
Each bidder may submit only one bid per section. No individual or entity, nor their affiliates or controlling companies, may participate in more than one bid for the same section.
2. Eligibility Conditions for Bidders
Eligible bidders include individuals or legal entities: (i) domiciled, headquartered, or registered in the Argentine Republic, or (ii) with main offices abroad and no local branch, provided they are registered in the Contrat.Ar System.
Prior to signing the concession agreement, the successful bidder must incorporate a corporation (sociedad anónima) whose sole corporate purpose will be to execute the concession agreement throughout its duration.
3. Economic Offer
The economic offer must consist of the toll amount the bidder proposes to collect if awarded the contract, calculated as of June 2025, and must not exceed the maximum tariff set for each section.
The tariff cap is ARS $ 3,057.85 for the Eastern Section and ARS $ 2,892.56 for the Connection Section. The Tender Documents establish the mechanisms for toll adjustments during the concession term.
Bidders may offer a toll below the maximum rate, in which case the concession term will be 20 years. Alternatively, bidders may offer the capped tariff, with a concession term not exceeding 30 years.
4. Bid Maintenance Guarantee
Each bidder must submit a bid maintenance guarantee, payable on first demand, valid for 120 calendar days from the opening of the envelopes of Stage 1.
Accepted forms for this guarantee include: (i) bank deposit; (ii) bank guarantee; (iii) stand-by letter of credit; (iv) surety bond approved by the Superintendence of Insurance of the Nation (Resolution No. 157/2025); or (v) deposits in Acquisition Value Units (UVAs).
The bid maintenance guarantee amount is ARS $ 3,600,000,000 for the Eastern Section and ARS $ 1,000,000,000 for the Connection Section.
5. Purpose of the Concession
The purpose of the concession agreement includes:
- Execution of works on the concessioned section;
- Preparation of executive projects for works to be carried out on the federal concessions network;
- Toll-based administration and operation of the concessioned sections; and
- Execution of complementary developments.
6. Concession Revenues
The concessionaire will receive revenue from: (i) tolls paid by users; (ii) the operation of service areas, complementary services, and residual properties; and (iii) any other income related to the concession.
7. Performance and Contract Compliance Guarantees
Upon signing the concession agreement, the concessionaire must provide the following guarantees:
7.1. Performance Guarantee
The amount is ARS $ 30,000,000,000 for the Eastern Section and ARS $ 4,000,000,000 for the Connection Section. This amount will be adjusted in accordance with the tariff update formula provided in the Tender Documents and must remain in effect until completion of the works.
7.2. Contract Compliance Guarantee
The amount is ARS $ 15,000,000,000 for the Eastern Section and ARS $ 2,000,000,000 for the Connection Section. This guarantee must remain in effect until all obligations under the contract are fulfilled and will be subject to adjustments as set forth in the Tender Documents.
7.3. Forms of Guarantee
The guarantees may be provided through: (i) a surety bond approved by the Superintendence of Insurance of the Nation (Resolution No. 157/2025); or (ii) deposits in UVAs.
8. Rights in Favor of Lenders
To facilitate project financing, the concession agreement allows the concessionaire, subject to the grantor’s prior authorization, to grant the following rights and guarantees in favor of financing entities:
- Pledge, assignment, or fiduciary assignment of up to 70% of the rights arising from the concession agreement; or
- Pledge, assignment, or fiduciary assignment of its shares and/or economic and political rights.
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For additional information, please contact Nicolás Eliaschev, Javier Constanzó, Daiana Perrone, Macarena Becerra Martínez, and/or Sol Villegas Leiva.
Argentina extends the Emergency in the Energy Sector
On June 2nd, 2025, the Government of Argentina released Decree 370/2025 (“Decree 370”), that extends the emergency of the energy sector previously declared by Decree 55/2023 and extended by Decree 1023/2024 (please see our comments here and here), until July 9th 2026.
Decree 307 is applicable to the segments of power generation, transmission and distribution of electric energy, as well as to transport and distribution of natural gas under federal jurisdiction.
Moreover, Decree 307:
- Extends the transition towards focalized energy subsidies period until July 9th, 2026 for the Secretary of Energy to continue implementing the necessary acts for the implementation of the measure, to advance in the restructuring of the subsidy regime, and to establish the specific mechanisms to assign and collect them by the users.
- Extends the intervention of gas and power regulators –ENRE and ENARGAS– until the new entity established by Foundations Law is constituted or July 9th, 2026, whichever occurs first.
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For additional information, please contact Nicolás Eliaschev, Javier Constanzó, Daiana Perrone, Victoria Barrueco, and/or Manuel Crespi.
New framework for power transmission system expansions
On June 2, 2025, the Ministry of Economy published Resolution 715/2025 (the “Resolution 715”) which defines the execution of certain expansions of the power transmission system as a priority and indicates that such expansions shall be carried out under the terms of the Public Works Concession Law No. 17,520, a legal framework recently amended by the Foundations Law (Ley Bases) with a strong emphasis on bankability, as described here.
This measure is framed within Decree 55/2023 (as extended by Decree 1023/2024), which declared the emergency of the national energy sector (see our comments on these regulations here and here), and takes into account the high risk of electricity shortages and transmission limitations in Argentina’s federal network.
Resolution 715 establishes that the Secretary of Energy (“SE”) shall approve regulations to include public works concessions within the alternatives for transmission system expansions. Such regulations shall include, among others, that the contractor may finance the expansions by means of a monthly payment to be funded by a rate collected from end-users of the service identified as beneficiaries, as well as that the operation and maintenance of the expansion shall be done by the concessionaire, acting as an Independent Transmission Carrier.
As a result, public works concessions will become a new mechanism for carrying out expansions of the transmission system through private investment and financing. This is a significant measure aimed not only to address the current situation of the system, but also to enable and remove barriers to other industries and projects that are currently limited by the lack of transmission capacity.
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For additional information, please contact: Nicolás Eliaschev, Javier Constanzó, Daiana Perrone, Milagros Piñeiro, Macarena Becerra, María Paz Albar Díaz, Rocío Valdez, Victoria Barrueco, Sol Villegas Leiva, and/or Manuel Crespi.
Argentina Ratifies the OECD Multilateral Instrument (MLI): Key Changes to Double Taxation Treaties
On May 28, 2025, the National Executive Branch enacted and published Law No. 27,788 in the Official Gazette, thereby formally approving the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (commonly referred to as the Multilateral Instrument, the “MLI”), signed in Paris, France, on November 24, 2016.
Regarding the legislative process that led to its approval, it is worth noting that Argentina was one of the original signatories of the MLI on June 7, 2017, in alignment with its commitment to international standards on transparency and the fight against tax avoidance. The bill was submitted to the Senate in October 2024, following initial approval by the Chamber of Deputies. The National Congress gave final approval on May 7, 2025. With its enactment by the Executive on May 28, 2025, and publication in the Official Gazette, the constitutional process required for the MLI’s incorporation into domestic law was completed, granting it full legal effect in Argentina.
Pursuant to Article 34 of the MLI, the Convention will enter into force at the international level, and with respect to Argentina, on the first day of the month following the expiration of a three-month period from the date the country deposits its instrument of ratification with the OECD Secretariat.
Once effective, the provisions of the MLI will apply in accordance with Article 35 as follows:
- With respect to withholding taxes (e.g., on dividends, interest, and royalties), the MLI will apply from January 1 of the calendar year following the latest date on which the MLI enters into force for both Contracting Jurisdictions. If such date occurs during 2025, the provisions will become applicable as of January 1, 2026.
- With respect to other taxes (such as income taxes assessed by means of tax returns, e.g., Corporate Income Tax), the MLI will apply to taxable periods beginning six months after the latest date of entry into force between the two jurisdictions, unless an alternative date is notified in accordance with Article 35.
Domestic Implications of the MLI
Argentina’s adoption of the MLI is part of a global initiative led by over 100 jurisdictions under the OECD/G20 BEPS Project, aimed at rapidly and consistently updating the network of international tax treaties and minimizing opportunities for tax avoidance by multinational groups.
The MLI is designed to counteract aggressive tax planning strategies that erode tax bases and shift profits artificially to low or no-tax jurisdictions. Its implementation enables Argentina to simultaneously update its existing Double Tax Treaties (“DTTs”) without having to renegotiate each agreement bilaterally.
The MLI will modify Argentina’s DTTs with jurisdictions such as Spain, Italy, Mexico, the Netherlands, Switzerland, and the United Kingdom, among others, in order to curb treaty abuse by arrangements lacking economic substance, consistent with Argentina’s international commitments to tax transparency and anti-avoidance measures.
Key Anti-Abuse Provision: Principal Purpose Test (PPT)
One of the main reforms introduced by the MLI is the Principal Purpose Test (“PPT”).
The PPT provides that treaty benefits—such as reduced withholding tax rates—may be denied if, considering all facts and circumstances, it is reasonable to conclude that one of the principal purposes of an arrangement or transaction was to obtain that tax benefit, unless it is established that granting such benefit would be consistent with the object and purpose of the treaty.
The MLI also amends the preambles of Covered Tax Agreements to reinforce their anti-abuse objective. Article 6 mandates the inclusion of the following text:
"Intending to eliminate double taxation with respect to the taxes covered by this agreement without creating opportunities for non-taxation or reduced taxation through tax evasion or avoidance (including through treaty-shopping arrangements aimed at obtaining reliefs provided in this agreement for the indirect benefit of residents of third jurisdictions)".
Such wording will be added in the absence of an equivalent preamble or will replace an existing one that does not sufficiently express this objective. Jurisdictions that already include a substantially equivalent preamble may opt out of this modification.
Practical Implications of the PPT
- The PPT will apply automatically unless a jurisdiction makes a reservation (which Argentina has not done).
- It does not require proof of fraud or tax evasion—only the existence of a principal tax purpose.
- Tax authorities may deny treaty benefits where aggressive tax planning or artificial structures without substance are detected.
- The burden of proof shifts to the taxpayer, who must demonstrate valid economic reasons for cross-border transactions.
Alternative to the PPT: Simplified Limitation on Benefits (S-LOB)
In addition to the PPT, the MLI allows jurisdictions to apply a supplementary rule known as the Simplified Limitation on Benefits (“S-LOB”).
This provision restricts treaty benefits to specific “qualified residents,” including:
- Individuals;
- Governments, political subdivisions, local authorities, and their wholly owned agencies or instrumentalities;
- Companies whose shares are regularly traded on recognised stock exchanges;
- Pension funds and non-profit entities that are regulated and recognized as such by the contracting jurisdictions.
However, Argentina has not yet adopted the S-LOB clause, making the PPT the sole anti-abuse rule applicable under the MLI.
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Please contact us at tax@tavarone.com should you require further information or wish to assess the implications of the MLI on specific structures or transactions.
Privatization of Energía Argentina S.A. – Sale of shares in CITELEC
On April 25, 2025, Decree No. 286/2025 (“Decree 286”) was published in the Official Gazette, authorizing the full privatization of Energía Argentina S.A. (“EA”) and the sale of its equity interest in CITELEC.
Decree 286 foresees that EA will be privatized in stages, through the separation of the activities and assets of its different business units, ensuring that the performance of services and works currently under EA’s scope is not interrupted.
Thus, with the approval of the sale of EA’s shares in CITELEC, the first stage of EA’s privatization has begun.
EA holds 50% of the shares of CITELEC, a company that is the controlling shareholder of TRANSENER, which in turn holds 99.9% of the shares in TRANSBA (the remaining 0.1% is held by CITELEC).
TRANSENER is the extra-high voltage power transmission utility operating nationwide; TRANSBA, in turn, is the utility for trunk power transmission in the Province of Buenos Aires.
The sale of EA’s shares in CITELEC will be carried out through an international and national public bidding process, pursuant to Articles 17(2) and 18(2) of the State Reform Law No. 23,696, as amended.
The Ministry of Economy, with the involvement of the Special Temporary Executive Unit for the Transformation of State-Owned Companies (ATEP), will issue the necessary regulations to implement Decree 286.
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For further information, please contact Nicolás Eliaschev, Javier Constanzó, Federico Otero, Julián Razumny, Francisco Molina Portela, Camila Evangelista, Milagros Piñeiro, Macarena Becerra, Inés Espina Rawson, Victoria Barrueco, and/or Manuel Crespi.
Privatization of Hydropower facilities
On April 10, 2025, the Government of Argentina published Decree 263/2025 (“Decree 263”), which advances the sale process of the following companies: (i) Alicurá Hidroeléctrica Argentina S.A., (ii) Chocón Hidroeléctrica Argentina S.A., (iii) Cerros Colorados Hidroeléctrica Argentina S.A., (iv) Piedra Del Águila Hidroeléctrica Argentina S.A., (v) Cerros Colorados Hidroeléctrica Argentina S.A. and (vi) Piedra Del Águila Hidroeléctrica Argentina S.A. (the “Companies”). These Companies are currently owned by Energía Argentina S.A. (“EA”) (98%) and Nucleoeléctrica Argentina S.A. (“NASA”) (2%). Both EA and NASA have been subject to privatization pursuant to Article 7 and Annex I of Foundations Law.
Decree 263 establishes a period of fifteen (15) days since its publication to launch a National and International Public Bidding process for the sale of the controlling shareholding in the Companies (the “Call for Bids”), currently held by EA and NASA.
The Call for Bids will be carried out by both the Agency for the Transformation of State-Owned Companies (Agencia de Transformación de Empresas Públicas) and the Secretary of Energy.
Decree 263 builds upon Decrees 718/2024 and 895/2024, which had initiated the privatization process of the Companies.
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For additional information, please contact Nicolás Eliaschev, Javier Constanzó, Daiana Perrone, Milagros Piñeiro, Macarena Becerra, Victoria Barrueco and/or Manuel Crespi.
Approval of LNG Export Procedure
On April 4, 2025, the Secretary of Energy published Resolution 145/2025, which approved the Liquefied Natural Gas Export Procedure (the “Procedure” and “LNG,” respectively). This measure was implemented in the framework of article 2 of Annex II of Decree 1057/2024 (see our comments on the decree here), which established that the Secretary of Energy would regulate the applicable procedure for LNG exports.
1. LNG export notification
According to the Procedure, companies interested in exporting LNG must submit an application, providing information regarding projected availability, reserves and production capacity for at least five (5) years as of the submission, maximum export LNG volumes, proof of filing with the Large Investments Incentive Regime (“RIGI”, for its acronym in Spanish) -if applicable-, and technical feasibility of the project. The Liquid Fuels Undersecretary shall analyze the information and issued observations or request additional information within ten (10) business days as of the date of submission. The Secretary of Energy may issue observations on the application -within one hundred and twenty (120) business days-, based on insufficient natural gas availability for the country or inaccuracies in the filing. The applicant shall have thirty (30) business days to rectify its application and once the observations are resolved, the Secretary of Energy will issue the certificate of “LNG Free Export Authorization”.
2. LNG export authorization
This authorization shall indicate the term of the exports, the LNG volumes and the frequency of reports to be required by the authority. The authorized company shall report, no less than ninety (90) days prior the first export, the volumes and prices, the registration as a storage operator with the Natural Gas Storage Registry of the Republic of Argentina (“RAGNar”) and submit proof of authorization with the Customs Registry System.
LNG exports will be authorized on a firm basis -non-interruptible- for a period of thirty (30) years as of the commissioning date of the liquefaction plant (including expansions or later stages). Provided that the required availability is periodically confirmed, the exporter shall have the right to export LNG on a continuous basis, without interruptions, restrictions or reductions, and shall have access to production, transport, processing and storage of natural gas to carry out LNG exports.
3. Exporter's duties
LNG exporters must ensure ongoing gas availability and prove within six (6) months prior to the current availability accreditation expires, that they have sufficient gas to cover the following five (5) years. Exporters must also report any changes regarding the information submitted in the application.
4. Term and assignment of authorization
Lastly, according to the Procedure, the export authorization expires automatically on the date established therein, though it can be revoked for exporter’s non-compliance with its obligations. The export authorization may be transferred to another party with prior approval of the Liquid Fuels Undersecretary, provided the assignee meets all the requirements of the Procedure.
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For additional information, please contact Nicolás Eliaschev, Javier Constanzó, Milagros Piñeiro, Victoria Barrueco, or Manuel Crespi.
Government moves forward with the privatization of Corredores Viales S.A.
On February 17, 2025, the Government took a significant step towards the privatization of Corredores Viales S.A., a state-owned company which currently manages a network of over 6,000 kilometers of roads, with the publication of Decree No. 97/2025 (“Decree 97”). This decree authorizes the complete privatization of Corredores Viales S.A. through the award of public works concession agreements, according to the provisions of the Foundations Law and the Public Works Concession Law.
Key highlights of Decree 97 include:
- Termination of the existing concession contracts for certain sectors under Corredores Viales S.A.;
- The initiation of selection procedures for the award of new public works concession agreements for road corridors, in accordance with the provisions of the Public Works Concession Law; and
- The dissolution and liquidation of Corredores Viales S.A., which will take place once the concession contracts have been awarded and executed with the preferred bids.
Furthermore, Decree 97 grants the Ministry of Economy the authority to oversee the bidding process, modify the road section configurations, and even exclude or include specific road segments as neccesary.
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For further details please reach out to: Nicolás Eliaschev, Javier Constanzó, Daiana Perrone, Milagros Piñeiro, Florencia Martínez Trobbiani, Macarena Becerra, Victoria Barrueco, or Giuliana Manzolido.
Open Call for BESS and power generation “AlmaGBA”
On February 17, 2025, the Secretary of Energy published Resolution 67/2025 (“Resolution 67”), initiating the national and international open tender “Almacenamiento AlmaGBA” (the “Call for Bids”).
The Call for Bids is designed to incorporate new Battery Energy Storage System (“BESS”) generation power plants within the concession areas of the distribution companies Edenor and Edesur. The goal is to achieve a combined capacity of 500 MW, with an execution period of 12 to 18 months.
Preferred bidders will enter into a power storage and generation agreement (the “Storage-Generation PPA”) with Edenor and Edesur, with CAMMESA acting as a last-resort guarantor.
While the full details of the Storage-Generation Agreement are yet to be released, the main aspects of the Call for Bids are outlined below:
1. Scope of the Call for Bids
The Call for Bids seeks to enhance the reliability and supply conditions, within the Buenos Aires metropolitan area and the Wholesale Electricity Market (“WEM”), focusing on specific connection nodes (“CNs”), which are specified in the Call for Bids.
Bidders selected under the Call for Bids will enter into a Storage-Generation PPA, committing to energy supply and power availability for a minimum of four (4) consecutive hours per full discharge cycle. The term of the Storage-Generation PPA will be 15 years.
2. Minimum and maximum power capacity per project
The power capacity for each bid must range from a minimum of 10 MW to a maximum capacity, determined by the lesser of 150 MW or the capacity assigned to each CNs.
3. Storage-Generation PPA
Under the Storage-Generation PPA, Edenor or Edesur will be the principal obligors, whereas CAMMESA will serve as a last-resort guarantor. Should a payment default occur for two or more periods, CAMMESA may be required to pay the outstanding amonuts in lieu of Edenor or Edesur, as applicable.
CAMMESA’s guarantee will be capped at a maximum of twelve (12) consecutive months, equivalent to the remuneration under the Storage-Generation PPA.
The full terms of the Storage-Generation PPA will be published no later than March 31, 2025.
4. Call for Bids Schedule
- Consultation period: February 19 - May 4, 2025.
- Publication of the Storage-Generation PPA: March 31, 2025.
- Publication of responses to consultations: February 24 - May 11, 2025.
- Bids Submission deadline: May 19, 2025.
- Award date: June 27, 2025.
- Storage-Generation PPA signing date: June 30, 2025.
5. Bidders and offers requirements
Among the various requirements set forth in the Call for Bids, bidders are required to provide a bank guarantee of US$10,000 per MW as a bid bond.
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For additional information, please contact Nicolás Eliaschev, Javier Constanzó, Daiana Perrone, Victoria Barrueco and/or Manuel Crespi.
Privatization of Belgrano Cargas y Logística S.A.
On February 10th, 2025, the National Government published Decree 67/2025 (“Decree 67”), authorizing the total privatization of Belgrano Cargas y Logística S.A. (“Belgrano Cargas”), according to the provisions of the Foundations Law.
Decree 67 orders the vertical disintegration and separation of the activities and assets of each business unit of Belgrano Cargas through the celebration of public works concession contracts for the railroad tracks and workshops, together with their adjacent properties, and the sale of the rolling stock through a public auction.
The Ministry of Economy, in cooperation with the Transformation of Public Enterprises Agency, is empowered to provide all the necessary regulations to carry out the procedure. It is also in charge of carrying out the biddings for the railways and workshops concession contracts celebration, the public auction for the sale of the rolling stock, and the dissolution of Belgrano Cargas.
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For additional information, please contact Nicolás Eliaschev, Javier Constanzó, Juan Pablo Bove, Paula Cerizola, Florencia Martinez Trobbiani, Macarena Becerra, Rocío Valdez, Victoria Barrueco, and/or Manuel Crespi.