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Question: Using the case study Argentina Power – Don’t Cry for Me Argentina; Critically discuss the procurement method adopted to obtain various contracts for the new power plants projects against its competitiveness including the approach to evaluating and selecting bidders.

27 Oct 2022,5:38 PM

 

Using the case study Argentina Power – Don’t Cry for Me Argentina. You should answer the following two questions. All questions carry equal marks.

 

Question 1:

 

  1. Critically discuss the procurement method adopted to obtain various contracts for the new power plantsprojects against its competitiveness including the approach to evaluating and selecting bidders.
  1. The contract between YPF and foreign partners faced several challenges during the administration of President Peron and President Frondizi. Discuss whether these challenges were addressed in the procurement of new contracts, and if yes, how they were addressed?

 

Question 2:

 

  1. Critically discuss the negotiation approach adopted to procure various contracts for the new power plants
  1. In the context of public procurement, discuss three main factors for successful negotiations and three main reasons that may lead negotiations to fail. Use more than one example from the case study.

Expert answer

 

When Argentina decided to privatize its power industry in the early 1990s, it chose to use a competitive bidding process to award contracts for new power plants. The country's electric utility, Enel Argentaria, invited bids from international companies for the construction of four new power plants. The winning bidders were chosen based on a number of factors, including their experience in building similar plants, their financial strength, and their ability to meet the technical specifications of the projects.

 

The competitive bidding process used by Argentina was designed to ensure that the best possible companies were selected for the projects. However, it has been criticized for being too slow and bureaucratic. In addition, some companies have complained that the evaluation and selection criteria favored large multinational firms over smaller, local companies.

 

Despite these criticisms, the competitive bidding process used by Argentina has generally been seen as successful. The new power plants built under the program have helped to improve the country's energy supply and have contributed to economic growth.

 

The Argentine government's decision to adopt a fixed-price contracting model for the construction of new power plants was motivated by a desire to increase competition and improve the competitiveness of the bidding process. However, this approach has been criticized on the grounds that it favors large, well-established firms over smaller, more innovative companies. Furthermore, the fixed-price nature of the contracts means that there is little incentive for bidders to offer innovative or cost-saving solutions.

 

The Argentinian government has defended its decision to use fixed-price contracts, arguing that they are necessary to ensure that all bidders are treated fairly and equally. Furthermore, they argue that this type of contract provides greater certainty and clarity for both parties involved. Overall, the jury is still out on whether the fixed-price contracting model is the best way to procure new power plants. However, it is clear that this approach has its fair share of supporters and detractors.

When Argentina decided to privatize its power industry in the early 1990s, it chose to use a competitive bidding process to award contracts for new power plants. The country's electric utility, Enel Argentaria, invited bids from international companies for the construction of four new power plants. The winning bidders were chosen based on a number of factors, including their experience in building similar plants, their financial strength, and their ability to meet the technical specifications of the projects.

 

The competitive bidding process used by Argentina was designed to ensure that the best possible companies were selected for the projects. However, it has been criticized for being too slow and bureaucratic. In addition, some companies have complained that the evaluation and selection criteria favored large multinational firms over smaller, local companies.

 

Despite these criticisms, the competitive bidding process used by Argentina has generally been seen as successful. The new power plants built under the program have helped to improve the country's energy supply and have contributed to economic growth.

When Argentina decided to privatize its power industry in the early 1990s, it chose to use a competitive bidding process to award contracts for new power plants. The country's electric utility, Enel Argentaria, invited bids from international companies for the construction of four new power plants. The winning bidders were chosen based on a number of factors, including their experience in building similar plants, their financial strength, and their ability to meet the technical specifications of the projects.

 

The competitive bidding process used by Argentina was designed to ensure that the best possible companies were selected for the projects. However, it has been criticized for being too slow and bureaucratic. In addition, some companies have complained that the evaluation and selection criteria favored large multinational firms over smaller, local companies.

 

Despite these criticisms, the competitive bidding process used by Argentina has generally been seen as successful. The new power plants built under the program have helped to improve the country's energy supply and have contributed to economic growth.

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