On August 20, 2026, the Ministry of Economy (the “Tender Authority”) released Resolution 1350/2026 (“Resolution 1350”), launching National and International Multi-Stage Public Tender 504/2-0004-LPU26 (the “Tender”) for the award of concessions for the railway infrastructure and adjoining land comprising the rail lines (the “Lines”) currently administered by Belgrano Cargas y Logística S.A. (“Belgrano Cargas”), together with an option to purchase the rolling stock associated to each Line (the “Rolling Stock”).
Resolution 1350 approves and adopts the General Bidding Terms, the form of concession agreement (the “Concession Agreement”), the Specific Bidding Terms, the Technical Specifications and their respective annexes (collectively, the “Tender Documents”). The Resolution also provides for the establishment of a trust (the “Trust”), which will be governed by the approved form of trust agreement template and will hold the proceeds from the sale of the rolling stock. The proceeds will partially finance the mandatory works required under the Tender (the “Mandatory Works”).
Resolution 1350 marks a milestone not only in the Belgrano Cargas privatization process, but also in the modernization of Argentina’s freight rail system, with the end-goal of reducing transportation costs and improving the competitiveness of industries like mining and agribusiness. By structuring the project under the public works concession regime, the Argentine government seeks to attract private investment in the freight network under conditions of legal certainty that support bankability and long-term sustainability of the projects.
The main terms of the Tender Documents are summarized below:
1. Main Tender Terms
The Tender comprises the construction of the works on each Line, together with their operation and maintenance, and includes an option to acquire the Rolling Stock. Bids are due on November 11th, 2026at 09:59 a.m.., and will be opened at 10 a.m. Questions regarding the Tender Documents may be submitted until October 28th, 2026 at 10 a.m.
a. Eligibility
Bidders must meet the legal, technical and financial requirements set out in the Tender Documents and post a bid guarantee (the “Bid Guarantee”) of US$2,000,000 for the Urquiza Line, US$8,600,000 for the Belgrano Line and US$15,400,000 for the San Martín Line, in each case valid for at least 180 days.
b. Economic offer
Bidders must submit a bid for a maximum toll (the “Maximum Toll”) for each Line, within pre-established floor and cap thresholds, and undertake to execute optional works selected from a pre-approved list (the “Optional Works”). Each Line will be awarded to the Bidder with the highest aggregate score.
c. Rolling Stock Payment guarantee
Awarded Bidders electing to acquire the Rolling Stock must post, before the purchase, a Price Payment Guarantee for an amount equal to the Rolling Stock price: US$52,286,000 (Urquiza), US$94,393,200 (Belgrano) and US$131,707,600 (San Martín). The guarantee will be reduced proportionally as the down payment and each installment are paid, and released once the price has been paid in full.
d. RIGI
The selected Bidder may apply for admission to the Incentive Regime for Large Investments (“RIGI”) through a dedicated branch, subject to approval by the RIGI Project Evaluation Committee. RIGI benefits would apply only to works that expand capacity. If the application is rejected, the Bidder will lose its pre-award status and its Bid Guarantee will be returned.
e. Trust
Proceeds from the sale of the Rolling Stock will fund the Trust, which will partially finance the Mandatory Works.
2. Concession Agreement
The Concession Agreement will be entered into between the Tender Authority and the successful Bidder for each Line, and will cover the execution of the works and the provision of Track Maintenance and Traffic Management services for a 50 year tenor.
The main terms of the Concession Agreement are summarized below:
- Toll: Concessionaires will freely negotiate tolls with freight operators, up to the Maximum Toll offered in their bid, which will increase by 15% once the Mandatory Works are completed.
- Interested Investors: Concessionaires, third parties, subcontractors, rail operators and shippers may seek authorization to carry out additional works (the “Additional Works”) and may recover their investment through toll-sharing, toll exemptions, priority access to capacity (up to 90% priority of use) or a temporary increase in the Maximum Toll.
- Guarantees: Concessionaires must post: (i) a First Phase Guarantee, in effect until the Mandatory Works and the Optional Works are completed and subject to reduction once the Mandatory Works are completed, for US$2,000,000 (Urquiza), US$8,600,000 (Belgrano) and US$15,400,000 (San Martín), plus an amount in US dollars equal to the Optional Works score multiplied by 100,000; and (ii) a Second Phase Guarantee, in effect until expiry of the concession, for US$8,000,000 (Urquiza), US$30,000,000 (Belgrano) and US$20,000,000 (San Martín).
- Economic-Financial Equilibrium: Adverse changes entitle the Concessionaire to request a renegotiation in order to restore the economic-financial equilibrium of the Concession Agreement, whether through adjustments to remuneration, extensions of the term, changes to the Works or any combination thereof.
- Secured Creditors: Certain actions require the prior consent of the secured creditors. If the Concession Agreement is terminated for the Concessionaire’s default, the secured creditors may exercise step-in rights and appoint a qualified successor that meets the same legal, technical and financial requirements as the Concessionaire.
- Dispute Resolution: Unresolved disputes may be referred to a Technical Panel and, subsequently, to international arbitration under the ICC Rules.
***
For additional information, please contact our Energy, Natural Resources and Infrastructure team or our Corporate team.