On August 25th, 2021, the Argentine Government issued Decree No. 556/2021 creating the National Entity for Control and Management of the Waterway (“Entity”), a decentralized agency with administrative, functional and economic-financial autarchy.
The Entity will operate within the jurisdiction of the Ministry of Transport, to manage the Paraná-Paraguay waterway. Also, the main objective of the Entity will be launching the national and international tender process for the award of the trunk waterway works.
Scope
The Entity will control the concession of work in the trunk waterway and must follow the development of modernization, expansion, operation and maintenance of the signaling and beaconing system, dredging and redrawing, hydrological control and/or activities complementary to those, on the inland waterway between kilometer 1238 from the Parana River to the Deep Natural Water Zone, in the outer Río de la Plata. The Entity’s scope of action could be extended by the National Executive Power.
Entity’s board of directors
The Entity’s board of directors will be made up of fifteen members: (i) a president, appointed by the Argentine President; (ii) one vice president and two assistants suggested by the Ministry of Transport; (iii) one vice president and one assistant suggested by the Ministry of Interior; (iv) one vice president and one assistant suggested by the Ministry of Productive Development; and (v) seven assistants suggested by each one of the provinces that signed the Federal Hidrovía Agreement.
Entity’s main powers
The decree provides a detailed list which states the entity’s powers, as follows:
Control and inspection: ensure the enforcement of the regulation and contractual frameworks applied to the concession contracts.
Penalties: initiate administrative procedures to impose sanctions for non-compliance with the regulation and contractual frameworks. Prepare and approve the bidding documentation that will govern the bidding processes related to concessions and public works that are granted on the navigable routes. Rates: approval and review of the rates and tolls established due to the concessions granted. Also, the Entity Will collect rates and tolls on behalf of the concessionaire. Audit and inspection: request information to public and private institutions. Registration of government property: create a registry for government property. Regulation proposals: prepare technical and operative regulation drafts. Jurisdiction: compulsory previous intervention of the Entity in any controversy that arises between concessionaires on the waterway. However, the Entity’s jurisdiction will be optional for disputes between users and concessionaires due to the provision of the service.
This report should not be considered as legal or any other type of advice by Allende & Brea.
