Argentina infra plan would leave 1,700 projects in limbo

Argentine President Javier Milei’s plan to resume federal infrastructure funding would leave 1,700 projects without resources as it benefits only works that are at least 80% complete.

Other projects below that threshold had received around US$545mn before Milei took office on December 10, news outlet TN reported citing official documents. 

According to public works database Mapa Inversiones, last updated shortly before Milei’s term started, some of the biggest projects potentially to be left out are:

– national route No. 19, San Francisco intersection-Cañada Jeanmarie stretch (US$92.3mn), 32.3% complete as of December 6;

– Rio Cuarto-San Francisco highway, national route No. 9-Provincial Route No. 2 stretch (US$98.1mn), 53.1% complete;

– Cañuelas-Azul highway, San Miguel del Monte-Gorch access stretch (US$91.4mn), 11.4% complete;

– Gran Tulum aqueduct (US$40.4mn), 48.3% complete;

– San Javier aqueduct, San Javier-Tostado section (US$259mn), 2.41% complete;

– Colorado river aqueduct and complementary works (US$89.7mn), 1.01% complete;

– La Rioja Central hospital (US$174mn), 1.51%.

Milei agreed to resume federal infrastructure financing as part of negotiations with provincial governors, who in turn promised to drum up support for his economic omnibus bill in congress.

The lack of funding and consequent paralysis worsened the crisis in Argentina’s construction sector, which has struggled even with inflation and payment delays before Milei became president. 

SURPLUS 

Argentina achieved its first budget surplus in 16 years during March, which reached 275bn pesos (US$286mn). But critics claimed it was due to massive spending cuts rather than improved tax collection.

Federal expenditures fell 87% year-on-year last month to 87.4bn pesos, Buenos Aires-based economic studies center CEPA reported, citing data from statistics office INDEC.

Energy investments fell 77%, transport 95%, education 87%, housing nearly 100%, water 84% and other sectors 83%.

Public spending dropped 28.6% year-on-year, but income also fell  8.6%.