Argentina's privatization program: experience, issues, and by Myrna Alexander, Carlos Corti, World Bank PDF

By Myrna Alexander, Carlos Corti, World Bank

ISBN-10: 0821325868

ISBN-13: 9780821325865

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Extra resources for Argentina's privatization program: experience, issues, and lessons, Page 93

Example text

Those cases requiring on-the-job adjustment underscored the importance for each consulting firm to have an experienced team manager in permanent residence for the duration of the contract. Virtually all privatizations, whether through the sale of shares or concession rights, were achieved through a competitive, two-envelope bidding process. In many cases, this was preceded by a prequalification process aimed at limiting the number of participants to only a few, well-qualified firms or consortia.

The latter establishes a Page 10 transparent system for the pricing and selling of bulk electricity in an openly contested market between generators and major users and distribution companies. It also establishes regulation of retail services. In line with this reform, the government will limit itself to power planning, granting concessions, coordinating a national power dispatch center, and setting overall electric policies. Privatization started in 1990 with the decision to sell SEGBA, which provides electricity service for greater Buenos Aires.

A new federal port law, approved by the congress in June 1992, provides for deregulation, demonopolization, and decentralization of port facilities. The rights for smaller ports have passed to the provinces while concession rights to operate major grain ports, Bahia Blanca and Quequen, have been let to a consortium of operators and rural associations. The concession for the Buenos Aires port will be awarded once the port has been divided into three separate Page 9 business units. Simultaneously, the government is in the process of concessioning the management, signaling, and dredging of the Parana/Delta river basin for a 460-kilometer channel from Santa Fe to the river mouth.

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Argentina's privatization program: experience, issues, and lessons, Page 93 by Myrna Alexander, Carlos Corti, World Bank


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