Posted on June 15, 2026
By Leila Miller
BUENOS AIRES, June 12 (Reuters) – In a last-ditch attempt to avoid the loss of a major river dredging contract, the Deme Group, whose consortium includes U.S.-based investment firm KKR & Co, on Thursday filed a new proposal with Argentina’s government to dredge the Parana River, according to a document viewed by Reuters.
On June 4, Argentina announced it had recommended awarding a 25-year contract to dredge and operate the Parana River, a vital waterway for most of the country’s agricultural exports, to Belgian dredging company Jan De Nul and its local partner Servimagnus. Officials estimate the project will reach $10 billion in investment.
Jan De Nul has managed the Parana waterway for decades. Back in May, U.S. House Foreign Affairs Committee Chairman Rep. Brian Mast warned about “Chinese malign influence” in Jan De Nul’s bid. Jan De Nul and Servimagnus called the claims of ties between the companies and Chinese capital during the bidding process “absolutely false and malicious.”
The Deme Group’s new proposal, filed with the Economy Ministry, uses a legal mechanism known as the “private initiative,” where private companies can submit proposals to develop public works projects that may then result in a bid. This differs from traditional bids where the government is the party proposing the project.
The new submission from the Deme Group proposes significantly lower tariffs, according to a letter the consortium sent this week to Argentine business chambers.
