The government of Salta Province in northwestern Argentina has announced the pre-award of a $145 million (approximately 195 billion KRW) contract for a major road construction project to a local joint venture company, Valle de Lerma. This project is expected to significantly contribute to the improvement of Salta Province's transportation network and the revitalization of the local economy.

According to a press release from the Salta Provincial Government issued on the 8th (local time), Valle de Lerma will construct a total of 22 km of road at a cost of 163 billion pesos (approximately US$146 million). This road, named the 'Lerma Valley Highway,' will serve as a crucial transportation link connecting the two major cities of Cerrillos and El Carril.

Valle de Lerma is a joint venture between local construction companies Ingeniero Medina and Vicente Moncho Constructores. It is reported that they initially proposed this road construction project to the government as a private investment initiative. The Salta Provincial Government positively evaluated this proposal, considering it to be in the public interest, and issued an executive order in December last year designating the project as a matter of public interest. Subsequently, a public tender was held in January of this year, with Valle de Lerma participating as the sole bidder and thus being pre-awarded the contract.

This road construction project includes not only the expansion and paving of roads but also the construction of important infrastructure to prevent flood damage in the region. Specifically, plans include the installation of 12 km of stormwater drainage pipes, the construction of 3 bridges, and the improvement of 7 intersections. This is expected to not only improve ease of travel but also significantly contribute to the safety and living environment of local residents.

Gustavo Sáenz, the Governor of Salta Province, expressed great anticipation for this project, emphasizing that it is "the most important road construction project of our administration." He predicted that improving the outdated regional transportation network will streamline logistics, which in turn will lead to the revitalization of the local economy and an improvement in the quality of life for residents. In particular, the Cerrillos and El Carril regions are centers of agriculture and tourism, and the construction of the new highway is expected to further boost the growth potential of these industries.

Argentina's road infrastructure has suffered from a lack of investment and neglect of maintenance for a long time. The situation is particularly severe for rural roads, which has been a major obstacle to the development of the local economy, including difficulties in transporting agricultural products and reduced accessibility for tourists. In this context, Salta Province's large-scale road construction project is a notable case nationwide and is expected to have a positive impact on other provincial governments.

Valle de Lerma, which won this contract, is expected to successfully carry out the project based on its extensive construction experience and technical capabilities. Ingeniero Medina and Vicente Moncho Constructores have a track record of successfully completing numerous road and infrastructure construction projects within Salta Province and other parts of Argentina. This experience will be a crucial factor in ensuring the efficient management and high-quality construction of this large-scale project.

Upon completion of this project, travel time between the Cerrillos and El Carril regions is expected to be reduced, and traffic congestion will be alleviated, significantly improving commuting and travel convenience for residents. In addition, the more efficient transportation of local specialties such as agricultural products will have a positive impact on the local economy. In terms of the tourism industry, improved accessibility is expected to attract more tourists.

The Salta Provincial Government's proactive efforts to attract investment and its transparent bidding process are credited with playing a significant role in the successful promotion of this large-scale road construction project. The strategy of achieving necessary infrastructure expansion while reducing the financial burden through attracting private investment offers significant lessons for other provincial governments.

In the future, the Salta Provincial Government plans to continuously monitor the progress of this road construction project and minimize potential problems that may arise during the construction process through communication with local residents. Furthermore, after completion, they plan to make every effort in road maintenance and management to ensure the long-term sustainability of the construction benefits.

The 'Lerma Valley Highway' construction project is expected to be an important stepping stone for the economic growth of Salta Province and the improvement of the quality of life for its residents, going beyond simple road construction. It is projected to maximize the potential of the region by improving outdated infrastructure and significantly contribute to laying the foundation for sustainable development. Other regions of Argentina should also refer to the successful example of Salta Province and actively promote infrastructure improvement efforts tailored to their local characteristics.