The governor updated a 1990 regulation to encourage private investment in infrastructure, employment, and public services
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Governor Alfredo Cornejo signed Decree No. 2002, published this Wednesday in the Official Gazette, which reforms the old Private Initiative regime in force since 1990.
The measure seeks to modernize the conditions for the participation of individuals and companies in public works and services projects.
Objectives of the reform
The update of the legal framework aims to facilitate the submission of private projects, encourage investment, and boost the local economy. According to the regulation, initiatives may be submitted either through an official call or through spontaneous proposals from interested parties to the competent authority.
Cornejo reformó el régimen de Iniciativa Privada para impulsar obras en Mendoza
Key changes in the regulations
The State is not required to declare the received proposals to be of public interest.
Individuals may submit initiatives without a prior call.
The transfer of rights and obligations of the promoter is permitted.
The promoter may join only one bidding consortium.
Preference for promoters
The decree by Cornejo establishes that if the offer from the Private Initiative promoter is equivalent to the best submitted, preference will be granted. Equivalence is considered when the difference doesn't exceed 10%, with additional increases of 2% or 3% if the bidder has experience in similar projects.
Investment limits and deadlines
The promoter's investment amount may not exceed by more than 20% the amount initially estimated, updated by the provincial CPI. In addition, the promoter's rights for the authorship of the project will be valid for two years from its submission, even if the initiative is not declared to be of public interest.
