At the time of the change of management, In December of last year, the national government had a total of 2,308 projects under its control throughout the country.which represented an investment of almost $310 billion. At that time, except for those that were in an advanced state of execution, the vast majority have been paralyzed.
And the reality is that, Although 20 agreements have already been signed with governors For the transfer of projects to the provincial level, both companies and officials from the different districts consulted say that the situation with regard to the execution of works has not changed.
In fact, according to what the president of the Argentine Chamber of Construction (CAMARCO), Guillermo Weiss, “this year is lost.” “Everything remains the same, there is nothing,” said the businessman when asked if the provincial agreements signed so far had managed to unblock the situation of paralysis.
“To start over, the Government has to put in at least $400 billion (which are the outstanding payments) and be willing to put in at least another $400 billion to get back on track,” Weiss said in describing the scenario.
As indicated According to a report from the former Ministry of Public Works, the largest number of works are in the province of Buenos Aires, with 899 projects in progress.Second is Córdoba with 197, third is Entre Ríos with 148 and fourth is Santa Fe with 144 projects.
Upon coming to power, within the framework of policies to obtain fiscal surpluses, President Javier Milei decided to stop financing the investment. Most of the projects were being carried out through agreements with the provinces. The provinces presented the work, and generally the national government provided the financing. These works are the ones that are now being negotiated with the governors so that they can continue them with their own budgets.
Provinces turn to other financing
At the beginning of the new libertarian management, The provincial leaders asked the central government to allow them to directly seek financing from organizations such as the Inter-American Development Bank (IDB) or the World Bank (WB). to continue. Other districts are trying to continue with their own budgetary resources. But the reality is that this year it is likely that nothing will change and we will have to wait until 2025. Of the agreements signed, Most transferred the expense but not the money.
Weiss explained that the There are very few nationally funded works that are still going ahead in the country. “In the larger provinces, work has continued on those that were originally planned with own resources without agreements with the Nation,” he said.
Of the works currently halted, there are about 514 in Connectivity and Road Infrastructure, In Integrated Water Resource Management, some 1,031, and in Urban, Rural and Care Infrastructure, some 763, according to data from the former Ministry of Public Works.
According to information from the Congressional Budget Office (CBO), in the first half of the year, real direct investment contracted by 83.9% due to the reduction in expenditure by the National Highway Authority (-93.3%) and the reduction of hydraulic infrastructure development works (-96.2%), among other expenditures.
According to what Ámbito was able to find out, National Roads would be trying to advance in the resurfacing of some 120 routes throughout the country, which would require about $240 billionThe figures involved in these cases are very significant. In the case of the nation, this type of expenditure would explain the fiscal surplus for one month, while for one of the poorest provinces it is not feasible.
It’s known that Santa Fe was seeking financing in Kuwait and the European Investment Bank (EIB). San Juan, for its part, obtained funds from the IDB for a section of Route 40 that connects it with Mendoza and Jujuy, money from the EIB, money for a collection point for waste management.
Source: Ambito
