The Argentine Port Authority. ANPyN, which is responsible for the critical tender for a 25-year Hidrovia dredging and signalization concession on the Parana River, released its evaluation of the second stage of the bidding process.
After the many complaints that the tender appears to be tailor-made to favor a consortium by Jan De Nul -Servimagnus, the port authority appears to be in a position to potentially compromise Argentine President Javier Milei’s objectives of attracting serious US investments in the real economy.
The US consortium consists of Great Lakes, Clear Street, and KKR, together with Belgium-based dredging company DEME.
US intelligence groups have established that Servimagnus has extensive links to Chinese entities.
The just-released second-phase evaluation, or “Envelope 2,” gives the Jan De Nul-Servimagnus consortium 66.2 points and the US-backed consortium only 42.14 points.
Background
During the first evaluation phase, “Envelope 1” ANPyN appears to have taken 6 weeks to evaluate 500 pages contained in “Envelope 1,” but astonishingly enough, and by using a handful of people to help read over documents pertaining to such a massive international tender, succeeded in concluding its evaluation of Envelope 2 (5,000 + pages of highly complex technical documentation) in a mere 2 weeks.
Did ANPyN conduct a serious technical evaluation of the second evaluation phase, or had it already opened “Envelope 2” before the announcement date, which would appear to be a clear violation of the tender rules?
U.S. National Security
Considering that US national security and commercial interests are at stake, an independent forensic investigation of the bidding process might well be warranted.
The Floridian’s conversations with US officials confirm that the US government is watching the process closely.“The United States just assisted them with $20 billion, and to not allow U.S. companies go to work in their ports and their waterways, and dredging, or anything else is unacceptable for us,” said Rep. Brian Mast, Chairman of the House Foreign Affairs Committee (HFAC).
The U.S. State Department, led by Secretary Marco Rubio, is also keeping a very close eye on the ongoing evaluation phases and could take pause over the recent assessment made on Envelope 2 by the port authority.
Considering Servimagnus consortium’s history of dealing with the People’s Republic of China (PRC) in the Western Hemisphere, a closer look at this company’s modus operandi might also be warranted.
The Port Authority
The Floridian reached out to Inaki Arreseygor, ANPyN’s executive director, both by phone and by email, but so far, he appears to have declined to answer several questions we submitted to him.
The email containing our questions was confirmed to have been received.
Here are a few of the questions we posed to Mr. Arreseygor:
—How can it be explained that the evaluation of Envelope 1 (administrative content), which was announced as non-decisive, took six weeks to analyze a limited number of pages with key content, while the assessment of 5,500 pages of complex technical content is expected to be completed in just two weeks by a three‑person team with no experience in international concessions?
—In the evaluation of Envelope 1, the JDN‑Servimagnus consortium was fully recognized with the signaling experience, disregarding the publicly known fact that this work was carried out by EMEPA. Does this not constitute unequal and preferential treatment in favor of certain participants?
—If a subjective and non‑transparent evaluation is confirmed, how do you believe this will affect the perception of U.S. companies planning to invest in Argentina under the Bilateral Investment Treaty, especially after having expressed specific interest in the Via Navegable Troncal Concession?
—Has ANPyN or yourself interacted with the Chinese Embassy on this tender?
—Did ANPyN or yourself have any interaction with Jan De Nul or its representatives since the publication of the tender outside of the official communications through the tender platform?
—Is ANPyN will to undergo an independent audit on the process led by US specialists? Would you be willing to testify for an official investigation committee?
—How can you state, as you did in public interviews, that there will be an evaluation of envelope 3 on the economic evaluation when no competition on price was allowed due to a floor price which is unheard in such tenders? The Deme consortium comes with significant US investments, providing a clear benefit to the Argentine economy. Jan De Nul brings China-related partners. How will this be measured in your economic evaluation as each party likely bid the floor price due to the prohibition to offer a discount or better price?
ANPyN will now move to its evaluation of “Envelope 3 where, curiously and against international standards, bidders will not be allowed to submit their lowest bid due to floor price established by ANPyN under which bidder cannot bid.
So it is expected that both bidders will have submitted a bid at the floor price. The US will watch closely whether the presence of US capital and operators will be valued.
Considering that the Hidrovia project is of strategic national interest to the United States and that both President Donald Trump and President Javier Milei want to encourage US investments in Argentina, did the port administration sabotage both presidents’ goal to achieve this?
President Milei is investing considerable personal and much-appreciated efforts in attracting US investment by traveling repeatedly to the US to personally promote his country to US investors.
Milei is facing criticism in Argentina on those repeated visits. ANPyN’s apparent efforts to block a US-backed consortium willing to take a long-term bet on Argentina’s real economy appear to be an effort that could hurt Milei’s reelection chances in 2027.
The former Kichner regime practices could inflict lasting damage to the perception by American investors that Argentina is a place where American investors are welcome.
What will President Millei do now?
