ARGENTINA Law and Practice Contributed by: Héctor Pozo Gowland, Esteban de Vedia, Carlos Ernesto Miná and Francisco Pozo Gowland, Pozo Gowland Abogados
in certain cases, the national government acts as a minority shareholder: • TRANSENER (the national government is an indirect minority shareholder); • TRANSBA (the national government is an indirect minority shareholder); • TRANSPA; • DISTROCUYO; • Compañía de Transmisión del Mercosur SA (CTM) and Transportadora de Energía SA (TESA); and • the independent carriers are the property of private capital, the most relevant being YACYLEC, LITSA and LIMSA. Distribution The companies with a concession contract with the national government are EDENOR and EDESUR and, in both cases, the national gov- ernment has minority participation. In addition, there are several distribution companies that operate locally at a provincial level. • TRANSNEA; • TRANSNOA; • TRANSCOMAHUE; 1.3 Foreign Investment Review Process There are no foreign investment restrictions or protections in the Argentine power industry, except in the case of construction of new facili- ties by government-owned companies, for which the supply of local goods may be applicable. The specific thresholds and conditions for investment approval may vary depending on the segment of the industry and the nature of the investment. Argentina needs to renew and expand its energy infrastructure, and new pro- jects are envisaged in the coming years.
Argentina has legal frameworks in place to pro- tect foreign investments, including in the power industry. These protections include safeguards against seizure, confiscation and expropriation without proper compensation. Foreign inves- tors have access to domestic courts to resolve disputes, as well as to commercial arbitration. International arbitration regarding investment is also available in accordance with applicable international treaties. Foreign investment in Argentina is undergoing a drastic change due to Law No 27,742, which was sanctioned in July 2024. This law is named the “Law of Basis and Starting Points for the Freedom of Argentines” and it contains a chapter about investment called the “Incentive Regime for Large Investments” ( Régimen de Incentivo para Grandes Inversiones , or RIGI). With the pur- pose of promoting the economic development of the country and attracting investments, both domestic and foreign, this regime proposes, in general terms, the creation of a scheme that grants conditions of predictability and stability, legal certainty and special protection to private individuals from the conduct of the state. In line with this, large investment projects that enter into this system will have important exchange, tax and customs benefits. Investments made under the RIGI will be considered to be of “national interest”, meaning that any national or local rule that may infringe on this will be null and void. YPF LUZ has requested that the 305 MW “El Quemado” solar farm that plans to build in Men- doza be accepted under the RIGI. The project has already been approved, which means that the investment is subject to the RIGI. Also, Pet- roquímica Comodoro Rivadavia and Acindar requested that a wind farm they plan to build be accepted under the RIGI.
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