Neuquén to seek US$350mn in financing for over 550 infra projects

A total of 574 infrastructure projects will benefit from a bill passed last week that authorizes Argentine province Neuquén to seek up to US$500mn in loans, with US$350mn being allocated to finish public works and the remaining US$120mn for debt amortization.

Neuquén is among the many provinces searching for new sources of financing to resume projects that were halted by a lack of federal funding amid the Argentine government’s austerity drive.

Most of the projects listed in the bill involve housing construction, though it also lists works for energy, health infrastructure, schools, water and roads. 

Halted projects listed in the bill include the Norpatagónico hospital, stage 1, requiring US$17.9mn. It was 34.5% complete as of December. Another is the Zapala wastewater treatment system (US$4.97mn), which was 59.2% complete.

However, the bill also lists new projects on which, as of last week, construction had not begun. 

Some of these initiatives were originally listed in the 2024 budget bill that was passed by the local legislature last November.

These include the Tronador wastewater treatment plant expansion (US$40.3mn). Tendered last year by national waterworks agency ENOHSA, its bid opening date was postponed until further notice, documents show.

Also on the list is provincial route 60’s Lanín national park access-Mamuil Malal border pass (US$2.93mn)

The full list can be seen here (in Spanish).

Another province eyeing loans is San Juan, though not with the same urgency as Neuquén. 

“It’s not the right moment,” local economy minister Roberto Gutiérrez told Radio Sarmiento last week, adding that he is waiting for interest rates to drop further before taking a decision. 

Other provinces such as Tucumán and Santa Fe are studying the idea of finishing projects halted by the lack of federal funding through PPPs, though the proposal faces an uncertain future when it comes to access to financing, and smaller provinces such as Neuquén don’t see it as feasible.  

In the meantime interior minister Guillermo Francos confirmed over the weekend that the federal government would resume funding for public works projects that are close to completion, local news outlets reported.

This is part of the negotiations between the executive and provincial governments over President Javier Milei's so-called omnibus bill, which aims to overhaul large swaths of the economy.