Infrastructure Financing – Page 2

Tag Archive for: Infrastructure Financing

Negotiations between Argentina and China continue for the construction of Atucha III

Argentina and China are advancing in the negotiations for the construction of Atucha III, the fourth nuclear power plant in our country, with Chinese technology and financing. US officials expressed their concern to the President of the Nation on a recent visit.

The Ambassador of Argentina in China, Sabino Vaca Narvaja, the Secretary of Energy of the Nation, Darío Martinez, and the director of Nucleoeléctrica Argentina, Isidro Baschar, held, on April 6, a meeting with the directors of the National Agency for Energía de China (NEA) and the China Nuclear Corporation (CNNC), in which they agreed to boost negotiations for the construction of the fourth nuclear power plant in Argentina.

The representatives of Argentina and China reviewed the status of the negotiations for the construction of the nuclear power plant in our country with Chinese technology. In addition, they explored the possibility of expanding the bilateral link in other areas of cooperation, such as the Argentine export of services and components for Chinese nuclear projects and the life extension of nuclear power plants in China.

The Secretary of Energy, Darío Martinez, affirmed that “the project of the IV Nuclear Power Plant has the full support of the President of the Nation and is on the list of priority projects between both countries.” Likewise, Sabino Vaca Narvaja explained that “Argentina has a highly developed platform in the nuclear sector with its own developments and a unique scientific base in the region. Achieving our fourth nuclear power plant, in addition to expanding our energy sovereignty, will place us at the forefront of a sector with historical development in our country ”.

For his part, the Deputy Director of the Department of Nuclear Energy of NEA, Qin Zhijun, stressed the importance of nuclear energy in the Chinese development strategy, in particular, considering the need to have a diversified energy matrix, as well as the importance of nuclear energy in the fight against climate change.

Worry in Washington

On April 14, two high-ranking officials of the United States government arrived in Argentina. The Director for the Western Hemisphere of the National Security Council, Juan Gonzalez, and the Acting Undersecretary of the State Department for Western Hemisphere Affairs, Julie Chung, shared a lunch with the President of the Nation, Alberto Fernandez at Quinta de Olivos . Also, in the evening, they shared a dinner with the President of the National Chamber of Deputies, Sergio Massa.

Joe Biden’s government officials asked the Argentine government for “prudence” in relation to China. Likewise, they expressed their concern about the project for the construction of the Atucha III nuclear power plant, with financing and technology from China.

The concern on the part of the United States in the construction of the nuclear power plant with technology and financing from China reflects that Argentina is not exempt from the current political dynamics characterized by competition between the two giants.

Atucha III, the fourth nuclear power plant in the country

The construction of this project is scheduled to be located at the Atucha Nuclear Complex, located in Lima, Zárate district, about 100 km from the City of Buenos Aires. In this same complex are the Atucha I and II nuclear power plants.

According to Nucleoeléctrica Argentina S.A, the negotiations contemplate that the reactor to be built in the new plant is a Hualong HPR1000 Pressurized Water Reactor (PWR) of Chinese origin. How do these reactors work? Basically they use enriched uranium as a source of heat (thermal energy), which is transported by high pressure water to a steam generator, which in turn converts that water into steam that drives an electricity generating turbine. This is the type of reactor most used in the world for electricity generation.

With regard to risks, NASA assures that “the safety levels of the Hualong reactor are significantly high and the risks of delay during construction are reduced.”

This new plant would be capable of generating 1200 MWe of gross energy. To put this in perspective, the Atucha I, Atucha II and Embalse reactors generate 362 MWe, 745 MWe and 656 MWe respectively.

Given the characteristics of the project in question, the type of energy to be used, the controversy regarding the technology to be used and its impact on the external positioning of the Argentine Republic in a context of dispute between the United States and China, from Fundeps we propose the need to that the national State faces the negotiation process in a transparent way and provides a broad framework for debate within Argentine society regarding the project and the use of atomic energy.

More information

Authors

Mariano Camoletto
Andres Paratz

Contact

Gonzalo Roza, gon.roza@fundeps.org

4 May, 2021

Global Governance, News

Argentina seeks to agree with China an investment plan for 30 billion dollars

On the eve of the next trip to China, the Argentine government negotiates infrastructure investment agreements worth close to 30 billion dollars.

“Below, we offer a google translate version of the original article in Spanish. This translation may not be accurate but serves as a general presentation of the article. For more accurate information, please switch to the Spanish version of the website. In addition, feel free to directly contact in English the person mentioned at the bottom of this article with regards to this topic”

The President of Argentina, Alberto Fernández, will visit the President of China, Xi Jinping, on May 5. One of the backbones of the meeting will be the negotiations for the entry of the South American nation to the Silk Road project and the landing of 5G technology from the hand of Huawei. In addition, it is expected that other important agreements for the bilateral relationship will be discussed, such as the expansion of the Caucharí solar energy park in Jujuy, infrastructure projects, livestock, investments and financing.

After a 2020 characterized by the health and economic crisis caused by the covid-19 pandemic, the Argentine government advances in investment agreements with China for a value close to 30 billion dollars. Argentina has 15 infrastructure projects on the list to present to China. These agreements are of great importance for the national government, mainly in view of the necessary reactivation of the Argentine economy.

The projects that Argentina prioritizes for investment from China are the rehabilitation plan of the San Martín Railway system, improvements to the Roca Railway line, infrastructure works on the Miter and Urquiza railway, the redefinition of the Belgrano Cargas railway network and the incorporation of rolling stock for passengers. In parallel, the installation of smart pig farms is being discussed. It is estimated that the value of the investment would be around 3.8 billion dollars for a period of four years, in addition to the objective of producing 882 thousand tons of meat for a value of 2.5 billion dollars.

Likewise, the landing of Chinese investments in mining is discussed, especially in the production of copper and lithium in northern Argentina. Regarding lithium, Argentina signed an agreement with Jiangsu Jiankang Automobile (JJA) for the production of vehicles and batteries in the country. The list of projects includes the remodeling of the Chaco-Corrientes bridge, the construction of an aqueduct and water treatment plants, road corridors and the development of a logistics hub in Tierra del Fuego.

Regarding investments in energy, the president has in his portfolio five main works that require large investments that he will request from the Asian giant. This plan prepared by the Secretary of Energy, Darío Martinez, and the Minister of Economy, Martín Guzmán, stands out for the non-inclusion of one of the most demanded works by China: the construction of the fourth nuclear power plant in the country with Chinese technology . This works plan includes the construction of the southern gas pipeline, the electric grid in AMBA, the electric grid in Patagonia, the Mesopotamia pipeline and the construction of a thermal power plant.

The construction of the fourth nuclear power plant began to take shape during the government of Cristina Fernández for a value of 12 billion dollars. With Mauricio Macri in power, the cost was lowered to 9 billion. However, with the economic crisis and Macri’s electoral defeat, the project came to a standstill. The arrival of Alberto Fernandez meant for China the possibility of discussing the realization of the project. Another work that does not appear in this plan is the construction of the Chihuido hydroelectric dam in Neuquén. This work claimed by Russia and China would remain in the hands of Germany.

One year after the start of the pandemic in Argentina and the measures that have been adopted to act accordingly, the link with China has deepened. The Chinese market has become the main destination for beef exports from Argentina. Bilateral trade between the two countries, which in 2000 was around 2 billion dollars, closed in 2019 at a value close to 16.3 billion dollars, with Argentine exports for 7 billion dollars and imports for 9 billion dollars. of dollars. In addition, the Argentine government closed an agreement with the pharmaceutical company Sinopharm in early February for the shipment of 1 million doses and the arrival of another 3 million doses is expected at the end of March.

This new boost to the relationship with China is expected to be strategic, commercially balanced and accompanied by the necessary responsibility in environmental and social matters.

More information

May 5: appointment in Beijing – Dang Dai Magazine.
Alberto Fernández will travel to China on May 5 – La Ruta China
Argentina and China advance in negotiations for an investment plan for almost $ 30,000 million – La Ruta China
Argentina and China rush an investment plan for US $ 30,000 million – El Cronista
Argentina signed an agreement with JJA to produce electric vehicles – La Ruta China
The five investment projects that Alberto will offer to China – El Cronista
China is Argentina’s main destination for beef – La Ruta China
Sinopharm: the details of the Chinese vaccine that will arrive in Argentina – Infobae
3 million doses of the Sinopharm vaccine will arrive in the country – BAE Negocios

Author

Mariano Camoletto

Contact

Gonzalo Roza, gon.roza@fundeps.org

31 March, 2021

Global Governance, News

The 2021 Annual Meeting of Governors of the IDB and IDB Invest was held

Between March 17 and 21, the Annual Meeting of Governors of the Inter-American Development Bank was held virtually. Different economic and financial leaders from member countries and the private sector discussed the pandemic and the economic recovery in Latin America and the Caribbean.

Each year, the IDB holds its Annual Meeting of the Board of Governors in one of the member countries. This year, the Assembly was held in the city of Barranquilla, Colombia, and its agenda was crossed by two central themes: the economic recovery of Latin America and the Caribbean in the face of the crisis caused by the pandemic, and the capitalization of the Bank.

First, the Bank’s president, Mauricio Claver-Carone, affirmed the IDB’s commitment to helping countries recover from the current economic crisis, reaffirming support for the financing needs of governments and assistance for access and negotiation in the purchase of vaccines. Based on this, Claver-Carone is committed to promoting the agenda that the Bank baptized as “Vision 2025”: reinvesting in the Americas, a decade of opportunities ”.

This agenda establishes five areas in which the IDB will focus in our region. These areas are: regional integration, strengthening value chains, supporting small and medium-sized enterprises, promoting the digital economy and prioritizing responses to gender and climate change issues.

On the other hand, Claver-Carone emphasized the work of the IDB Group during 2020, which in response to the COVID-19 emergency, approved loans for almost US $ 24,000 million, both to companies and governments, reaching record levels in the granting of loans. Faced with this, the president referred to the Bank’s capitalization: “I ask you to reinvest in us so that we can decisively reinvest in the region (…) The region will have a committed partner to help countries face these historical challenges and be well equipped with the financial resources necessary to make a big difference ”.

The Assembly then approved a resolution authorizing the work necessary to consider a potential capital increase of around US $ 80 billion. This amount was authorized by the United States Senate and was described by the Bank’s president as “the largest capitalization in its history.” Capitalization is a process that will increase the IDB’s creditworthiness and lending capacity. Through this, the Bank’s capital will be revalued and will allow it to face its need to address the financing problems of the region.

Finally, Claver-Carone referred to the need for the participation of women in the labor market to promote economic growth in Latin America and the Caribbean and made known new contributions for the Amazon region between Colombia and Brazil to promote development sustainable through an environmental approach.

Undoubtedly, this year’s Assembly leaves us with a clear forecast of what the IDB Group will do in our region, crossed by the needs generated by the pandemic, by a new Bank presidency and by new agendas to be implemented, supported by the new capitalization. In this sense, it is worth noting that this capitalization process should be accompanied by a series of necessary internal reforms at the institutional level, which effectively ensure greater transparency and protection of social and environmental rights in projects financed by the Bank or its clients. .

At the same time, the process of citizen participation and relationship with civil society should be strengthened. The way in which spaces such as the Board of Governors are structured and planned, for example, reflect the Bank’s little predisposition to create effective spaces for exchange and dialogue with civil society and affected communities. We hope that these are some of the points to be reviewed by the Bank in view of a possible capitalization.

More information

IDB Annual Meeting will address economic recovery and sustainable growth – IDB
Annual meeting of the Boards of Governors of the IDB and IDB Invest – IDB
IDB and IDB Invest get support from the Assembly for Vision 2025 and route to capitalization – IDB
Roadmap for IDB recapitalization approved – The New Century

Author

Sofia Armando

Contact

Gonzalo Roza, gon.roza@fundeps.org

25 March, 2021

Global Governance, News

The incorporation of Argentina to the Asian Infrastructure Investment Bank was approved

Today, October 28, the Argentine Chamber of Deputies approved the bill to enter our country into the Asian Infrastructure Investment Bank. Thus, the incorporation of Argentina as a Non-regional Member to the bank is made effective.

On September 3, the Argentine Senate approved the bill for the entry of the Argentine Republic to the Asian Infrastructure Investment Bank -AIIB-. The approval of the law was carried out today, October 28, in the Chamber of Deputies by 235 positive votes and 4 negative votes.

The management for Argentina to form part of the Bank began in the first Forum ‘One Strip and One Route for International Cooperation’ held in 2017, in which the previous government management affirmed the country’s intention to be part of the AIIB and the The Bank’s Board of Directors approved the admission of Argentina to the Institution.

The Asian Bank was born in 2015 at the initiative of China and began operating in January 2016. It has 102 members from different regions of the world. AIIB is a multilateral financial institution and, between completed and ongoing projects, has already financed 138 infrastructure projects.

For Argentina, joining the AIIB means an additional alternative to access financing for infrastructure works through a new multilateral organization. However, although it has been proposed as a different alternative to Western multilateral banking, the AIIB does not escape the logic, operation and even institutional structure that characterizes institutions such as the World Bank, the International Finance Corporation or the Inter-American Development Bank. . In this sense, from civil society, criticisms and questions have been raised regarding the transparency, accountability and environmental sustainability of the projects financed by the bank, which should be taken into account by Argentina when receiving financing of this institution.

More information

Argentina, one step away from becoming a member of the Asian Infrastructure Investment Bank – Fundeps
Argentina-China: cooperate in adverse times – Fundeps
Are the brothers united ?: Profiling the Sino-Argentina relationship in the government of Alberto Fernández – Fundeps
The role of the AIIB in the New Green Silk Road – Fundeps

Contact

Gonzalo Roza, gon.roza@fundeps.org

28 October, 2020

Global Governance, News

Nuclear cooperation between Argentina and China advances

In November, the Argentine government plans to move forward with the signing of the contract for the construction of the fourth Hualong-type nuclear power plant, with Chinese financing.

The government of Alberto Fernández advances in the signing of the contract for the fourth nuclear power plant with the Asian giant. The preliminary agreements signed in 2014 and 2015 included the construction of two nuclear reactors. One of the reactors would be made of Candu-type natural uranium, a technology that Argentina handles, and the other reactor would be Hualong-type enriched uranium, of Chinese origin.

However, in the Macri government modifications were made to the agreements with China and in 2018 it was decided to build only the Hualong-type reactor, a model that is planned to be built in this administration. This type of reactor will require an investment of USD 8 billion and for this Argentina will have to import the fuel for the plant to function, which implies that the country depends on foreign suppliers. Several specialists such as José Luis Antúnez, Andrés Kreiner, Gabriel Barceló and Eduardo Barreiro are against this type of reactor and insist on the need to continue with the natural uranium technology that uses the Candu model.

On the other hand, proponents of the construction of the Hualong reactor such as Sabino Vaca Narvaja and Isidro Baschar see its construction as a smart partnership with China that will help strengthen national development. Also, they are negotiating the possibility of the country producing the nuclear fuel that this reactor model needs and thus avoiding dependence on foreign suppliers. In addition, they highlighted that the plant will have a Chinese loan of USD 7,900 million that will begin to be paid when the reactor generates electricity, that is, in 8 years. Regarding the cancellation of the construction of the Candu reactor, Vaca Narvaja and Baschar argued that the Ministry of Energy is working to reactivate it.

Regarding the choice to build nuclear power plants instead of opting for renewable energies such as wind and solar, it raises concern not only because of the higher construction cost but also because of the risks that nuclear energy implies. Detractors of the Hualong nuclear power plant maintain that it would not even be useful to develop the scientific-technological system, that if it occurs in other types of reactors such as the Candu.

The moment chosen to advance in the construction of the nuclear power plant is also questioned since, due to the context of the economic crisis and the restructuring of the debt in which Argentina finds itself, it would not be opportune to take on debt nor is energy necessary nuclear since at present the country has no deficit in energy production.

It should be noted that the commitment to greater nuclear development is closely linked to the type of energy matrix and the development model promoted by the country. In turn, it involves and affects, directly or indirectly, a wide variety of actors. Therefore, from Fundeps we consider that this type of decision should necessarily include a deep debate at the social level, with the necessary transparency and participation of the different social actors involved. Unfortunately this does not appear to be the case.

More information

Argentina continues to bet on nuclear power plants with Chinese financing – Fundeps
Status of the emblematic projects with Chinese financing in Argentina – Fundeps
Analysis of the Second Joint Action Plan between Argentina and China (2019-2023) – Fundeps

Author

Sofia Brocanelli

Contact

Gonzalo Roza, gon.roza@fundeps.org

30 September, 2020

Global Governance, News

The BRICS Bank designed its new president: the Brazilian Marcos Prado Troyjo

In a special meeting, the Board of Governors of the New BRICS Development Bank elected Brazilian Marco Prado Troyjo as the new president of the multilateral institution.

The Board of Governors of the New Development Bank -NDB- of the BRICS met in a special way through videoconference to elect the new president of the bank: the Brazilian Marcos Prado Troyjo, who will take office on July 7. Its vice president will be Anil Kishora from India and he will serve as the bank’s chief risk officer. The presidential term is 5 years and the presidents are elected on a rotating basis between the member countries of the BRICS, that is, between Brazil, Russia, India, China and South Africa.

Troyjo was vice-minister of economy in Brazil, served as special secretary for Foreign Trade and International Affairs, and represented the Brazilian Government on the boards of multilateral development institutions. In addition, he chaired the Brazilian External Financing Commission and the National Investment Committee. He was also co-founder and Director of BRICLab at Columbia University, United States, and is a member of the World Future Council on International Trade and Investment of the World Economic Forum (WEF).

Marcos Troyjo will replace the previous president of the KV Kamath Bank of India, who has held the presidency since 2015 and is responsible for the NDB’s response to the COVID-19 pandemic, through the launch of the Emergency Program Loan Product COVID-19. The new president of the NDB will have the challenge of facing the post-pandemic economic consequences, reactivating the infrastructure projects and with it the activity of the multilateral bank. It remains to be seen also what direction the New Development Bank will take, but also the same space of the BRICS after the pandemic, given the loss of influence that the forum has experienced in recent years and the criticism it received, including from from the president of Brazil himself, Jair Bolsonaro.

More information

Contact

Gonzalo Roza, gon.roza@fundeps.org

19 June, 2020

Global Gorvernance, Publications

Analysis of the Second Plan Joint Action between Argentina and China (2019-2023)

The following document describes and analyzes the Second Joint Action Plan agreed between Argentina and China (2019-2023) at the G20 summit in 2018. This Plan reinforces the comprehensive strategic partnership between both States and details the actions that will be carried out carried out in different areas such as politics, trade, culture, finance, communications, among others.

Descargar Documento / Download File

2 June, 2020

Democracy, Global Governance, News

Trunk Gas Pipelines and the difficulty of accessing public information in the province

On the occasion of the completion of the Trunk Pipeline Work in the province of Córdoba, last year we made 5 requests for information to provincial agencies. When we did not get any response, we presented a prompt dispatch to the Ministry of Environment and Climate Change. The difficulties we have encountered in accessing information about this project have been constant since its inception.

Since 2014, we have made various requests for information on this emblematic project to both the Provincial Government and the National Government. On the occasion of the project’s completion, last year between August and October we made a series of requests for information to three departments of the Province of Córdoba directly or indirectly involved in the project, namely: the Córdoba Investment and Financing Agency -ACIF -, the current Ministry of Public Works, former Ministry of Public Works and Financing and the current Ministry of Environment, ex. Ministry of Water, Environment and Public Services.

At the end of 2019, as we had not received a response from any of the provincial agencies for the requests for information made and the response period had ended, we decided to make an early dispatch to the Ministry of the Environment.

It is important to clarify that once the provincial agencies receive a request for information they have 10 days to respond and it can only be extended for an additional 10 days as long as it is reported within the deadline. In the event of an incomplete response or lack of response, as was the case here, a prompt dispatch may be submitted. This resource is the same request for information, but it details the date and details of the request that had been made, together with a warning to initiate legal actions, that is, an injunction for default. Any provincial agency has a term of 10 to respond to the prompt dispatch, with the possibility of extending it for another 10 days, as well as with requests for information. In our case, the prompt dispatch was carried out in mid-December 2019, however the Ministry of the Environment responded to us only in February 2020, that is, the deadline was more than expired.

Thanks to the prompt dispatch made, we received the response to the request for information made in August 2019. The request requested information on the final layout of the project, location and number of inhabitants, businesses and industries benefited by the works and the state of situation. of the project. According to the information provided, all the Regional Systems are completed with provisional and / or definitive reception of the work.

In addition, we inquired about the companies and / or Transitory Business Units (UTEs) that participated in the project as well as what were the details and characteristics of the plan for connecting the home units to the Trunk Systems Regarding this last query, the provincial agency He replied that by means of a protocolized Agreement No. 024/2017 signed by the province of Córdoba, the Banco de Córdoba and the Distribuidora de Gas del Centro SA The “Fund for the Financing of Natural Gas Home Networks” was approved. It established the guidelines and requirements that the adhering municipalities must meet to allow the neighbors the possibility of obtaining financing to face the costs of connecting to natural gas in the home networks. In line with the above, the origin of the financing of the Provincial Plan Connect Gas Industry that enables the connection to the natural gas service to Shops, SMEs, Industries, Industrial Parks, among others, was consulted. This Program has a Banco de Córdoba financing line of $ 200,000,000, an amount that is loanable up to 100% of the value of the work according to the client’s classification. Also, the Program has financing of $ 100,000,000 from the Federal Investment Council.

Most of the information requested had previously been requested in requests for information that we made in previous years but in which we did not receive any response. Information that would have been optimal to have long before.

The lack of response to requests for information, such as non-compliance with the deadlines stipulated by Provincial Law 8803 on Access to Public Information (called the Law on Access to Knowledge of State Acts), hints, again, not only the great difficulty currently existing to access public information in the hands of the government of the Province, but also how outdated this law is, which dates back to 1999. Consequently, last year together with social organizations we requested through a document the update of this Provincial Law in accordance with the guidelines of the Inter-American Model Law and the National Law of Access to Public Information.

Access to public information is a human right that strengthens citizen participation, transparency in public administration, and democratic governance. For this reason, it is necessary to update the provincial Law in this matter in order to solve the shortcomings it possesses, incorporating the highest standards and guaranteeing control mechanisms that supervise its compliance.

More information

Trunk gas pipelines: we make requests for information to dependencies in the province of Córdoba – Fundeps
With the trunk gas pipelines completed: positive or negative balance? – Fundeps
Trunk gas pipelines in Córdoba: a work progressing in the shadow of corruption – El Entramado
Córdoba, a proposal to update the Law on Access to Public Information – Fundeps

Author

Gonzalo Roza
Sofia Brocanelli

Contact

Gonzalo Roza, gon.roza@fundeps.org

1 June, 2020

Global Gorvernance, Publications

Status of the emblematic projects with Chinese financing in Argentina

China’s growing interest in financing infrastructure projects in the region has led Argentina to sign a multiplicity of cooperation agreements with this country. For this reason, we have identified a series of projects with Chinese financing which we believe are relevant for their magnitude and for the economic, social and environmental impacts they can generate. Thus, in this document, the status of the situation, amounts committed and actors involved in the selected projects considered emblematic are detailed (only spanish).

Descargar Documento / Download File

29 May, 2020

Global Governance, News

The World Bank, the IDB and the CAF commit financing for Argentina in the context of the pandemic

In recent weeks, the World Bank approved a project for 35 million dollars and the IDB and CAF have committed amounts of 1,800 and 4,000 million dollars respectively for projects that allow Argentina to face the effects of COVID-19 . These are fast-disbursing loans that, while important to alleviate the economic, social and health consequences of the pandemic, raise a series of doubts regarding the effective fulfillment of the requirements and conditions necessary for their approval.

The effect of the pandemic on the world economy can be reflected in the paralysis of international trade and economic activities. Furthermore, the situation of uncertainty has led to the tightening of external financing for the States, which at this moment are essential to face the health emergency, which requires heavy investments in materials and specific medical equipment.

Faced with this scenario, various International Financial Institutions such as the World Bank Group, the Inter-American Development Bank -IDB-, the European Investment Bank -BEI- or the Development Bank of Latin America -CAF-, among others, have put Quick disbursement financing available to countries for projects to cope with the effects of the pandemic. On April 2, the World Bank -BM- approved an emergency loan of $ 35 million for Argentina, with the aim of strengthening the health system by purchasing equipment and medical supplies to minimize the impact of the coronavirus on the country. This financing is part of the $ 14 billion fund that the World Bank created to provide assistance to countries that must face the consequences on their health and economic systems due to the outbreak.

Fuente: Página 12

In addition, the World Bank promised to cooperate with the Argentine Republic in the implementation of the Emergency Project for the Prevention and Management of the Disease by COVID-19. The purpose of the same is to strengthen the preparation and response against the pandemic and the adaptation of the country’s national public health systems. The execution of the emergency project will be in two stages: the first consists of the emergency response efforts of COVID-19, which consists of two sub-stages: on the one hand, detection, confirmation, follow-up of contacts, registration and reporting of cases and on the other, the strengthening of health systems. The second stage is the implementation, monitoring and evaluation of the project.

Likewise, on May 7, the Inter-American Development Bank (IDB) announced a loan of 1.8 billion dollars for the country to alleviate the economic, social and health consequences of the COVID-19 crisis. It is the largest amount disbursed by the IDB to Argentina in the last 10 years. The support provided by the IDB is linked to care for the health system, transfer to the social protection network for the most vulnerable, and economic and employment recovery, mainly from micro, small and medium-sized enterprises (MSMEs).

Fuente: Infobae

The programs of the public area of the IDB Group linked to Argentina with the objective of responding to the emergency of COVID-19 and that will be approved this 2020 is 1,000 million dollars, while the other 600 million dollars correspond to current projects.

In an official statement, the Presidency explained that the first of the projects will allocate $ 470 million for a public health program to support the response to the coronavirus, of which 300 million were disbursed this year. The objective is to ensure access to the health system for 17 million people. Similarly, with the intention of supporting the productive sector and promoting job creation, 500 million dollars will be allocated, for which 300 million were disbursed this year. It is estimated that the amount will go to the aid of 30 thousand micros, small and medium-sized companies.

In addition, 600 million will be allocated with the goal of serving the most vulnerable population through a social protection program created in conjunction with the IDB. Of this total, 400 million will be disbursed this year with the purpose of transferring resources and subsidies to vulnerable sectors. It will support around 3 million companies.

For its part, the Development Bank of Latin America (CAF) has stated that in the current context, each State must adopt economic measures that respond to the situation of each country, without neglecting the productive sector and the most vulnerable social sectors. To contribute to these spaces, CAF has deployed an emergency loan package for each country of up to $ 50 billion to serve public health systems; We also allocate emergency disbursements of 2.5 billion dollars per country to SMEs that involve different aspects of the financial portfolio. In addition, non-reimbursable cooperation resources have been made available to donate essential supplies to the health sector.

The Argentine president held talks with the CAF executive (Luis Carranza Ugarte) exchanging concerns and initiatives to respond to the crisis. The institution committed to the Argentine Government to carry out the execution of technical cooperation projects for more than 4,000 million dollars within the next four years aimed at economic reactivation and social aid at different government levels. For the current year, specific financing will be allocated to strengthen the emergency in the provinces ($ 40 million), promote social policies ($ 30 million), develop investments in infrastructure, including educational establishments, repair and construction of routes. , and sanitation (USD 900 million dollars).

In this way, it can be seen that the Financial Institutions have made fast-disbursing funds available to the national government to be able to deal with the effects of the pandemic in an executive manner. And Argentina is not the only case, since more than 130 projects have been approved in countries in Latin America, Europe, Asia and Africa for a total amount greater than 25 billion dollars, according to a mapping of projects carried out by the Early Warning System.

While recognizing the need for countries to quickly have resources to face the economic and social effects of the pandemic, it should be noted that most of these projects are being prepared, discussed and approved in an accelerated manner, in a few weeks, when they are generally processes that take several months since they must go through a series of instances and meet a series of requirements for their approval and start-up. Requirements that not only contemplate economic-financial issues, but also in terms of transparency, public participation, accountability, due diligence and social and environmental sustainability of projects. Therefore, it is questionable whether such requirements are effectively being contemplated and applied in these fast disbursement projects by the Financial Institutions and governments involved.

More information

CAF reinforces its commitment to Argentina to boost its development with more than USD 4 billion – Development Bank of Latin America
COVID-19: CAF analyzes public policies to face the crisis in Latin America – Development Bank of Latin America:

Authors

Ailín Toso
Mariano Camoletto

Contact

Gonzalo Roza, gon.roza@fundeps.org

14 May, 2020

Global Gorvernance, Publications

The Role of Latin America in the Belt and Road Initiative

The objective of this document is to analyze the strategy, objectives and political motivations of the People’s Republic of China in Latin America and the Caribbean. This analysis seeks to complement the previous analysis carried out by the Regional Group on Financing and Infrastructure (GREFI) based on the Asian giant’s commercial and investment strategy in LAC, which led to the publication of “General Overview of Chinese Investments in America Latina: The cases of Argentina, Colombia, Mexico and Peru ”in 2016. The document analyzes the Chinese political strategy in LAC by analyzing the relationship framework in certain multilateral and bilateral spaces in which China is present in the Region and in which it even exercises a leadership role. And special emphasis is placed on the Belt and Road Initiative promoted by China, and the role that the LAC region has to play in it. (Only in Spanish)

Descargar Documento / Download File

4 May, 2020

Global Governance, News

Brothers be united? Profiling of the Sino-Argentina relationship in the government of Alberto Fernández

After the Mauricio Macri government will use the acquisition of debt with multilateral credit organizations as the main source of financing for its management, prioritizing the relationship with the International Monetary Fund and the United States government, it is prudent to ask ourselves: What has been the China’s role in this scenario? How is the relationship with the Asian giant outlined in the new government of Alberto Fernández?

Since the consolidation of China as an influential player in the international system and one of the main economic powers, Argentina has had a relationship with ups and downs but in constant communication. The use of China as a counterweight actor against the constant influence of the United States is not a strategy used only by Argentina, but also by most of the countries in the region.

In this geopolitical scenario, China presents itself as an actor that cannot be ignored beyond the efforts of the West. However, the Mauricio Macri government slightly changed the trend that had been prevailing during the Cristina Fernández government, which could be described as almost preferential.

During the Macri government, relations with China have gone from having a strong bond to going through some ups and downs, since the beginning of the administration, the closest approach to the United States tended to a distance with China. This was reflected in the reconsideration of agreements previously signed during the previous government, which implied a pause in several projects. The guiding idea of the foreign policy of the then President Mauricio Macri was “the reintegration of Argentina in the world” which involved giving a more relevant role to multilateralism. From there, the various international tours and the search for support in the world produced a departure with the Chinese giant with whom he had a very deep strategic cooperation agreement.

Faced with the exhaustion of international credit and the inevitability of the link with China, in the middle of his term, Macri resumed the dialogue interrupted for two years and continued with the stage of deepening the strategic cooperation proposed by the Fernández de Kirchner government, with the Holding of the G20 Summit in Argentina and new modified cooperation agreements were signed. By the end of the term, the relationship had already been fully resumed, which was evidenced in Argentina’s attendance at China’s main initiative in Latin America in the Strip and the route, and 16 cooperation agreements were signed between the two countries. Finally, in June 2017 Argentina is outlined as a potential non-regional member to the Asian Investment and Infrastructure Bank -AIIB- along with other Latin American States, in order to find financing for the country’s large public infrastructure works such as dams in Patagonia .

In this context, the government receives President Alberto Fernández, who is also going through an exceptional situation of public health emergency due to the COVID-19 pandemic. The truth is that, months after his administration began, Fernández had to decide who would be the Argentine ambassador to China, a decision that would indicate the course of action of foreign policy with the Asian country. Fernández’s decision was innovative since he appointed Luis María Kreckler, a career diplomat with a career in embassies such as Brazil and Germany, as Argentine ambassador to China and as political advisor to the embassy along with Sabino Vaca Narvaja, renowned political scientist of the Program of Sino-Argentine Cooperation and Linking from the National University of Lanús and academic specialist on China.

From this designation it is observed that the Fernández government seeks a balance in the relationship with China, that is, the maintenance of a strategic association with the Asian giant but without reaching full dependence. The appointment of a diplomat with a career as Kreckler may imply prudence when proposing a foreign policy strategy that generates an international balance of political interests that may be presented by political scientist Vaca Narvaja.

For his part, President Fernández has declared that China’s role in the global order is inescapable and that during his term he will seek to deepen the Comprehensive Strategic Association that could be extended to the Belt and Road Initiative.

For the moment, the incipient government of Alberto Fernández, which has barely gone through 100 days of administration, has already had to manage a national health emergency crisis by COVID-19, and an economic emergency due to the still pending negotiation with the IMF. . In this context, everything that does not qualify as an emergency is automatically displaced from the government’s priorities. However, the relationship with the Asian giant has been strengthened with the donation of medical supplies from the Chinese government to Argentina in the framework of the bi-national cooperation established in the face of the COVID-19 pandemic.

Likewise, when it comes to the People’s Republic of China, it is recognized that the symbolic has the same relevance as the economic. For what no less data has been the message contained in the input boxes from China where the famous quote by Martín Fierro written by José Hernández was found: «The brothers be united because that is the first law. Have true union at any time. « Although nuances can be expected in the relationship with the Asian giant, one thing is certain, the Alberto Fernández government is determined to strengthen the bilateral relationship, so we must wait to know at what cost it will be.

More information

The economic and commercial relations between China and Argentina in the era of Mauricio Macri – Lin Hua (2017)
Overview of Chinese investments in Latin America – GREFI (2016)
China-Argentina relations under the Macri administration: do we change? -Fundeps (2017)
Alberto Fernández explained why it is key to enhance the bilateral relationship with China – El Cronista (2020)
Coronavirus in Argentina: a shipment arrived with Chinese donations for the Ministry of Health – Clarín (2020)

Author

Florencia Harmitton

Contact

Gonzalo Roza, gon.roza@fundeps.org

24 April, 2020