In The Port of Buenos Aires, Companies Rent Public Space for $2 per Square Meter
<p><span style="line-height: 1.6em;">Low prices, many free sites transferred freely, and automatic renewal of permits. We are talking about the land given to companies by the Port Authority for exploitation of goods and services. The AGN stated that the rates of the year 2001 were changed only in 2009 and that, also, the determination of the period of time responds to the future concessionaire.</span></p> <div> </div>
According to the AGP, the entity that managed and controlled the port concessions during the reviewed period, the area of the port of Buenos Aires that was rented reached 891,604 m2, for a total of $1,822,060. The General Audit’s Office (AGN, for its acronym in Spanish) indicates that with these values, the State obtained an income of only $2 per square meter (m2).
The General Administration of State Ports (AGP SE, for its acronym in Spanish) objectives’ is to manage, administrate, and control the commercial ports of Argentina. One of its powers is "granting individuals the management or operation of a public service or the use of a real domain, through a concession of use or a use permit." The 'use permit' applies to activities of little judicial impact or economic significance. Still, the auditors noted that the Terminal Quinquela was granted such permission. At the time of the audit, 111 use permits and 4 awards were being used.
The report approved in 2012 on the 2007-2009 period, explains that "in 2002 a committee was formed to review the rates-of-permissions", but an update was completed only in 2009. For the auditors, "the delay deprived the AGP of resources to achieve their business objectives."
In turn, the Audit clarifies that 75% of the permits are "automatically renewed -contracts– by one year." This situation goes "against one of the main objectives of the Master Plan" adopted in 2005, which defines policies and goals of the Administration until 2030. This is to “reduce fragmentation of port areas and unifying land use."
Against this, the AGN noted that "30% of the leased area is not intended to port activities related uses." They even add that "the port has numerous free and assigned spaces that should be regrouped to form larger units." The new rescued land should be exclusively dedicated to activities related to the port. Meanwhile, the plan foresees a deficit of port space of 12 hectares to 35 hectares in 2015 and 2020, according to port growth.
As for the terms of the permits, it’s indicated that the maximum should reach 10 years depending on the level of investment income and other variables, but in practice, "the standard applied, usually responds to the request of the soon to be concessionaire".
Endless Regulations
For the AGN, there is a “profusion" or excessive rules governing the granting of use permits, making knowledge of what is applicable difficult to know. This situation prompted the National Audit to not be able to rebuild the procedures by which permissions are granted. Even more, the auditors found that "27% of the total permits issued did not have the evaluation report" for determining "whether to grant permission or not."
Following this, in 2009, "the General Manager was authorized to order the text of Resolution 71/91," that originally allowed these permits. Nevertheless, at the time of the audit, it had not made the order.