Jorge Macri, the mayor of Buenos Aires, has decided to terminate the bidding process for the towing system and announced that the service will continue to operate. In a post on his social media account, Macri stated, “After thorough analysis with my team regarding the towing service contract, I made the decision to cancel the bidding process. The service will remain under the City’s management at less than half the cost stipulated in that contract.”
Macri emphasized the necessity of being fiscally responsible in the current economic climate. He mentioned, “We need to be mindful of every peso of the taxpayers’ money. We will continue to assess the best way to manage this service moving forward.”
This decision follows unsuccessful negotiations aimed at reducing the fee established by the pre-award agreement signed by Horacio Rodríguez Larreta just days before he left office. On the same day, Buenos Aires woke up to garbage piled in the streets due to a protest by the Camioneros union, which is connected to at least two of the companies that were competing for the contract.
The announcement clarified that the aim behind canceling the pre-award was its excessive cost to the City, which would have tied the administration to that contract for the next ten years. The pre-award would have required public spending of $360 million.
The document explained that the contract included an $8 million advance payment to the companies and mandated that the government cover operational costs, even if no towing services were needed. Now, the City will handle this service at a cost of less than half what was proposed in the bidding process.
In terms of the bidding timeline, the government decided to end the existing towing system, which had been in place since the early 1990s, and called for new bids in July 2022. Just before the end of the previous administration in December 2023, the City pre-awarded the towing contract to a group of companies, including UTE Ashira-Ecoba, Transporte 9 de Julio, and UTE SAEM-Tránsito Rosario.
Given the current economic context, the City felt compelled to reassess costs, optimize resources, and maintain service standards. Since the bidding invitation in 2022, the City has taken responsibility for the towing system, retaining all employees and keeping them aligned with the Camioneros union. The City will continue to explore the most efficient way to contract for this service in the future.
Source: https://www.perfil.com/noticias/politica/jorge-macri-anuncio-que-cancelo-la-licitacion-de-las-gruas-de-acarreo-y-se-profundiza-la-tension-con-camioneros.phtml
