Milei's government seeks to eliminate Vialidad Nacional and continue cutting expenses

The Government of Javier Milei is considering the possibility of issuing a decree to merge National Highway Administration, an icon of Kirchnerist corruption, with two other key agencies linked to public works. The proposal includes the integration of National Highway Administration with Road Corridors and the Road Safety Agency, which would result in the disappearance of the main agency, which has already been paralyzed, and its transformation into a smaller structure. Meanwhile, in other sectors of the State, the Minister of Deregulation, Federico Sturzenegger, is focused on disbanding areas responsible for public works at the national level and is reportedly working on drafting the decree. Last week, the Milei Government announced the suspension of most road works under the responsibility of National Highway Administration, of which only those in four provinces will continue.

Although a final decision has not yet been made, it is said that the issue is being debated by the Government and could be related to another previous announcement: the closure of various National Highway Administration offices and the dismissal of 50% of its staff. The adjustment would include a first stage in which staff would be reduced from 5,400 to about 3,800 workers and technicians, both in provincial delegations and at the central headquarters in the City of Buenos Aires. Regarding the privatization process of Road Corridors, the national Government indicated that progress is being made in the "bidding for the operation and maintenance" of the routes currently under its management. The project includes a new concession scheme for the operation and maintenance of sections of the National Road Network, with the intention of having the private sector take over management, which will allow reducing the deficit, making expenses transparent, and balancing public accounts.

This would be the plan to integrate the three areas into a single structure, which would be responsible for managing all national public works. In the first phase, two sections of Corridor 18 will be tendered, whose concession expires on April 9, 2025. This corridor mainly covers national routes 12 and 14, the Rosario-Victoria Bridge, and crosses the provinces of Buenos Aires, Entre Ríos, Santa Fe, and Corrientes. Currently, calls for Public Hearings are open. In a second phase, more than 8,500 kilometers (5,282 miles) of routes currently managed by Road Corridors S.A. will be concessioned, including other roads that were not previously concessioned, such as RN 33 in Santa Fe, RN 18 in Entre Ríos, and the variant of RN 19 in Córdoba. This stage will be divided into eleven sections. In total, 9,342 kilometers (5,804 miles) will be tendered distributed in thirteen sections, representing 20% of the national road network, but concentrating 80% of the traffic. The call for this second phase will take place throughout 2025.