The head of the Argentine Chamber of Construction warned that the country loses US$25 billion annually due to lack of investment in maintenance and replacement of assets. He pointed out that almost US$21 billion are required in 2025, but the national budget provides for only 10% of that amount.
“If we do not invest in maintenance, in the priority recovery of very deteriorated infrastructure and in the replacement of assets at the end of their useful life, productive capital of US$25 billion per year is lost”. This is what he pointed out Gustavo Weisspresident of the Argentine Chamber of Construction (CAMARCO) in the framework of a presentation he gave this Wednesday at the Rotary Club.
The manager stated that “we inherited a depreciated and poorly maintained infrastructure, but, even so, “It is worth US$634,000 million, 1.14 times the GDP.”
He estimated that for this year US$20,941 million are needed at the expense of the Nation, the provinces and the municipalities, equivalent to 3.78% of the GDP for maintenance and urgent recovery works. However, he calculated that the national budget includes only US$2.2 billion, which he considered “very small” because it represents 10% of what was necessary “and it was not executed.”
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Lack
The lack of resources, he warned, “it prevents us from covering the minimum maintenance and urgent recovery needs, in particular, of the road, railway and sanitation network.”
According to international parameters, private investment in infrastructure does not exceed 15% of the total, stated the head of CAMARCO. The remaining 85% has to be done by the State, at its three levels, “because in the majority of investment in infrastructure there is no profitability for the private sector and, therefore, it is not attractive, the Government has to do it”
In relation to the private participationconsidered that “We must give it profitability, legal security, access to long-term capital marketsbecause all of these are very long-term financing at a low rate, because if not, there is no project that will close. However, it is “all conditions that Argentina does not comply with.”
Source: Ambito
