Termination of the Argentina Hace Plan
Public Law department report | Termination of the Argentina Hace Plan
On June 18, 2024, the Ministry of Economy published Resolution No. 452/2024 in the Official Gazette (the “Resolution”). This regulation terminates the Argentina Hace Plan (from the Spanish “Plan Argentina Hace”), which was created back in 2020 by Resolution No. 12/2020 of the Ministry of Public Works. This plan aimed to finance public works and services with national funds with the objective of reactivating local economies related to the construction sector.
Within the main aspects of the Resolution, we can highlight that the National Public Works Secretariat of the Ministry of Economy, along with the agencies operating under its jurisdiction, must follow the below guidelines:
a- In cases where the executing entity (whether a province, municipality, or any other entity) does not comply with the obligations assumed under the agreement, corrective measures must be taken and required changes implemented. If necessary, funds must be recovered, and the agreement may be terminated due to the executing entity’s fault. Additionally, the executing entity must be notified to assess the feasibility of continuing the project without financial assistance from the National Public Sector.
b- If the executing entity complies with the obligations assumed under the agreement, the feasibility of the entity financing the project without National Public Sector assistance must be analyzed.
c- For those cases where the executing entity does not accept or is not an feasible to continue the project without financial assistance, the decision to continue the execution of the agreement must be restrictively and justifiably determined, taking into account: (1) the progress of the project, (2) the public interest involved in the project execution, and (3) the costs involved in executing the project.
d- Projects with continued financial assistance must be completed within 120 days as of June 19, 2024. The Public Works Secretariat may extend this deadline for justified reasons.
e- Once six months have passed following the 120-day period indicated in (d) to complete the projects mentioned in the previous item, Argentina Hace Plan will be terminated.
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Oscar Aguilar Valdez
Santiago J. Barbarán