Belgian firms clash in high-stakes Hidrovía tender dispute

Argentina's most significant government tender, the concession for the Hidrovía waterway, is facing intense scrutiny and delays. The waterway, responsible for 80% of the country's foreign trade, has seen its bidding process falter through multiple postponements and disputes among interested companies.

The core of the controversy lies between two Belgian firms, Jan De Nul and DEME. Jan De Nul has been pre-awarded the contract for maintenance and deepening of the navigable channel, a business valued at approximately $15 billion over 25 years. However, DEME has lodged strong objections, claiming the tender unfairly disqualified its international dredging experience and that the winning company has historically overcharged users by more than 30%.

Adding to the complexity, some companies sought a division of the tender into smaller segments, while others pointed to the long-standing advantage of the incumbent operator. Concerns have also been raised about the inclusion of state-owned companies, which are reportedly barred from participating under the current tender rules.

The Argentine government maintains that the process has been transparent, with prior opportunities for objections and proposals, and that the United Nations serves as a guarantor of fairness. Despite these assurances, the tender has been postponed more than three times across different administrations, consistently accompanied by scandal. The Ministry of Economy announced Jan De Nul's pre-award after it scored higher in technical evaluation and offered the lowest economic bid, resulting in an immediate tariff reduction.

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the contract is awarded to a company that for years has overcharged Hidrovía users by more than 30%.