Neuquén reactivates public works: it renegotiates stalled contracts and excludes lost profit

Faced with the nearly 400 stalled works the province counted after the cut in national financing (Dec-2023), Neuquén declared a state of emergency in provincial public works and created a 2-year Reactivation Plan (extendable 2 more). The core is contractual: (1) the law deems given, for ALL contracts under execution at the time of its enactment, the cause of art. 74 of the Public Works Law (force majeure / act of God), enabling renegotiation of terms, amounts, investment curve, work plan and price-redetermination system; (2) if no agreement is reached and the contract is terminated, the eventual indemnity to the contractor is limited exclusively to consequential damage, excluding lost profit (Art. 78 subs. h, Law 687) — in any termination cause. It prioritizes education, health, security/prisons, roads, networks (electrical, gas, water and sanitation), housing and water resources. Under this framework the province projected 451 new works over 3 years for more than USD 2,000 M (188 housing, 98 water/sanitation, 88 energy, 82 education, 45 roads, 31 health, among others) and reactivated key routes for Vaca Muerta such as Provincial Route 7 (the Añelo bypass, together with Route 17). It invites the municipalities to adhere. verif · May 17, 2024 ↗

Law enacted on 04/11/2024 and promulgated on 04/25/2024 by Decree 371/2024; the Neuquén Official Gazette record registers publication on 05/17/2024. The Reactivation Plan runs for 2 years from publication, extendable by another 2 by the provincial Executive. Regulated within 60 days by Decree 500/2024 (prior survey and prioritization by Decree 23/2024). prob · May 17, 2024 ↗

Construction companies and public-works suppliers with contracts in force or stalled in Neuquén (those who renegotiate recover collection and term certainty, but lose lost profit as an indemnity floor if termination comes). Downstream: road, water/gas/electricity-network, aggregates, freight-transport and engineering-service SMEs that plug into the 451 works. For the Vaca Muerta ecosystem, the reactivation of Route 7 and the Añelo bypass relieve the logistics of heavy transport. prob · May 17, 2024 ↗