Entre Ríos province unveils US$235mn roadworks plan

Argentina’s Entre Ríos province will invest 240bn pesos (US$236mn) in roadworks over the next two years, in stark contrast to the strict austerity program for federal infrastructure investments implemented by the government of President Javier Milei, which is now celebrating a year in office.

“Although we have limited resources, we will begin to carry out the projects that should have always been done,” Entre Ríos governor Rogelio Frigerio said in a release. 

The investment plan is divided into four groups, with the first involving 469km of provincial roads and the contract being awarded to a joint venture comprising Lemiro Pablo Pietroboni and José Eleuterio Pitón for 12.6bn pesos.

The seven sections of roads included in this contract are: 

Provincial route No. 11. Oro Verde turnabout-Gualeguay (207km)
Provincial route No. 11 Tres Bocas access road (14km)
Provincial route No. 16. National route N°12 - National route No. 14 (66km)
Provincial route No. 20. Provincial route No. 39 - National route No. 14 (75km)
Provincial route No. 26. Victoria-Nogoyá (39km)
Provincial route No. 45. National route No. 12 - Ibicuy (46km)
Provincial route No. 51. Larroque-km 8.2 and Faustino Parera - Urdinarrain (22km)

Group 2 will be tendered before the end of the year, and the provincial government expects to have works on all four groups of roads underway during the first quarter of 2025, Entre Ríos infrastructure minister Darío Schneider told radio R2820.

The ministry did not respond to a request from BNamericas for additional information.

During the same day, the lower house of the provincial congress voted to extend emergency declarations for both public works and roads, which were issued in March and June respectively, until December 31, 2025.

Milei's figures

In January-October, federal public spending shrank 29.1% year-on-year, with nearly a quarter of the cuts coming from funding of public works, Buenos Aires-based economic policy studies center Cepa said in a report, citing data from statistics office Indec and the national budget office.

Financing for public works dropped 77.6% in the first nine months of the year, while activity in the construction sector declined 16.9% during the same period, economic and social studies center Ceso said in a separate report. 

The construction sector also shed a total of 66,000 jobs between November 2023 and August 2024.

“With a payroll that is shrinking in real terms – due to drops in wages and employment – and with a state that is shrinking – because of cuts to social benefits and public works – it is unlikely that domestic demand will recover,” the report reads.

Milei has stated that he wants to hand most infrastructure developments to the private sector, but so far only a tender for the country’s section of the Paraná-Paraguay waterway has been launched, while there are doubts about whether there is sufficient access to financing for private investors. 

At the same time provincial governors, whose support is key to mobilize legislators in congress, have pressured the federal executive branch to resume funding for projects that are at least close to completion.

Milei’s so called “chainsaw” cuts to public spending have forced provinces to reorganize their budgets to keep key projects afloat and La Pampa has announced that it will not have new project tenders next year as a result.