Ley Bases: how the eight state-owned companies targeted by Milei will be privatized

Javier Milei's government has already defined the privatization plan for eight state-owned companies contemplated in the Ley Bases. The official strategy aims for the process to be rigorous and transparent, focusing on obtaining "the best possible price" and avoiding subsequent legal conflicts, according to official sources confirmed to Infobae.

The companies included in this first stage are: Enarsa, Nucleoeléctrica, YCRT (Río Turbio), Intercargo, AySA, Trenes Argentinos, Belgrano Cargas, and Corredores Viales. The person responsible for coordinating the strategies is Diego Chaher, head of the Public Companies Transformation Agency.

Gradual process with legal backing

The Executive clarifies that there will be no rushed privatizations. Although some cases could be solved in 2024, the goal is to have all preliminary steps ready before November, a key date to present a clear roadmap to the International Monetary Fund (IMF).

The scheme is structured in several stages:

• Ley Bases as a legal framework
• Enabling presidential decree
• Technical reports
• Tender documents
• Sale or concession

So far, four companies have reached the second stage: Enarsa, Intercargo, Corredores Viales, and Belgrano Cargas.

Three privatization models

The mechanisms considered are three and could be used in combination:

• Sale of shares through public tenders open to local and international investors.
• Public Offering of Sale (OPV) on the Stock Exchange.
• Concession of operations and subsequent cancellation of the company's CUIT.

"With Milei, the world has become interested in Argentina again," a government official stated in dialogue with Infobae. He added:  "If the macroeconomy is organized and we achieve positive electoral results, investments will come."

Company-by-company plan

According to Infobae's reconstruction, the roadmap is as follows:

• Enarsa: It will be divided into 15 units. The sale of Citelec's shares (Transener's controlling company) will begin through national and international tenders.
• Intercargo: Sale through public tender.
• AySA: Majority shareholding via tender; minority via OPV.
• Belgrano Cargas: Tender of operations, sale of rolling stock, and CUIT closure.
• Trenes Argentinos (SOFSA): Tender of services, with residual state participation.
• Corredores Viales: Concession and subsequent closure.
• Nucleoeléctrica: Sale of up to 49% through tender.
• YCRT (Río Turbio): Sale through tender with an operator in charge of management.

Companies outside the Ley Bases and public spending

President Milei insists that "everything that can be in private hands will be sold," including companies excluded from the Ley Bases due to opposition pressure: Aerolíneas Argentinas, RTA (Radio and Public TV), and Correo Argentino. The focus is also on Banco Nación, which has already lost the monopoly on public salary payments.

According to official figures, so far this year, the Treasury has allocated more than $4 trillion to finance the operational deficit of these companies.

Investment expectations and economic context

The government is aware of the impact of political and economic timing. Most operations are projected for after the elections, hoping that a more stable economy will stimulate investment.

However, data from the Central Bank shows a challenging context: Foreign Direct Investment (FDI) continues to decline, with a net outflow of USD 2.2 billion between December and February. The goal is to reverse this trend with clear signals to the market.