On September 14, 2017, the President sent a bill to Congress regarding the general budget for fiscal year 2018 ("2018 Budget”). The 2018 Budget includes infrastructure projects to be carried out in 2018 (“PPP Projects”) by means of the Public-Private Partnership Regime (“PPP”), which was passed last year through Law No. 27,328, regulated by means of Decree No. 118/2017 (“PPP Regime”).

PPP Projects specifically contain construction works in several industries, such as roads, health (hospitals), energy (transmission lines), housing, health service (water and sanitation) and railway. The 2018 Budget foresees an investment of ARS 2,135,785,546,998 (approximately USD 122,000,000,000) to develop PPP Projects in no less than three years.

The 2018 Budget also foresees the creation of a trust to, among other functions, make and guarantee those payments related to PPP Projects, grant loans and guaranties regarding PPP Projects, issue trust securities, issue documents regarding work progress or investment acknowledgement and assume their payment; and make contributions and acquire financial instruments for the execution of PPP Projects.

Furthermore, on October 12, 2018, Decree No. 817/2017 was published in the Official Gazette, which appointed the head of the Public Private Partnership Secretariat, which is the body in charge of applying the PPP Regime.

This way, the PPP Regime continues to define itself in the current administration as a fundamental instrument for investment and development of necessary infrastructure in the following years.

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