Argentine government has high hopes for PPP programme

Significance

This first stage, with works expected to start in April 2018, will focus on the improvement of the road network. The PPP legislation was passed by Congress in November 2016 with the aim of improving public infrastructure at a lower cost to the state, given the high fiscal deficit, but progress has been slow.

Impacts

• PPP may boost investments in key infrastructure sectors such as roads and electricity, which face major bottlenecks.
• Argentina’s track record of policy shifts and doubts over sustainability may discourage investors.
• Trust funds through which contractors will be paid will fall outside the budget and congressional control.