Govt. opens Belgrano RR economic bids

Argentina's transport department has opened economic bids that were submitted last month by groups Roggio and Emepa to buy shares in railroad Ferrocarril Belgrano Cargas, an official from the department's rail office confirmed to BNamericas. A decision is expected April 1, said the official, without releasing bid amounts. In August, the country's transport department published bidding rules for the process, after the government signed an agreement in January 2003 with Belgrano's rail workers' union (Unión Ferroviaria), plus investment and foreign trade bank BICE, to sell the shares. The winning company will hold a 75% share in the railroad, while the government and rail workers' union will hold 5% and 20%, respectively. Of the government's share, 4% may be put out for sale in the future. The sale aims to bring in a private sector player to revamp and operate the network, and reactivate the narrow-gauge line that crosses 7,347km of the northern provinces of Jujuy, Salta, Formosa, Tucumán, Chaco, Catamarca, Santa Fe, Santiago del Estero, Córdoba and Buenos Aires. Some US$50mn is expected to be invested in the first five years of the 26-year contract.