Well, well, well! It seems that Argentina is going full-on *international begging* mode—the kind that makes you wonder if they’ve got a bake sale planned at the same time. Yes, the Argentine government, led by the ever-so-coiffed Javier Milei, has turned its attention towards our *Eastern friends* in China. They’re essentially asking for a financial *bailout*—around $800 million—to jump-start the construction of two dams: the Jorge Cepernic and Néstor Kirchner. And let’s be real: who wouldn’t love a cheeky 800 million dollars just lying around?
Now, these projects have been as successful as a diet in a bakery—completely stalled since December 2023. Talk about a *construction site ghost town*! You could practically hear the crickets chirping. But fear not, because if the Chinese banks decide to take a pity on them, it’ll be the equivalent of throwing a *lifebuoy* to a drownin’ argentine! What a milestone that’ll be—or should we say a *millstone*? The original contract said these dams were meant to be completed by 2020, which, let’s face it, is about as realistic as finding a unicorn in your backyard.
While Milei’s request is a big step, it’s also a bit of a *tightrope walk*, teetering on the fine line of diplomacy. There’s a job crisis, to boot, with around 2,500 jobs lost due to construction delays, and let’s be honest—nobody likes losing a job. It’s like being dumped but without all the fun of a karaoke night with friends afterward!
Milei’s Request to Chinese Banks
So here’s the plan: $800 million, from banks that sound like they’re straight out of a superhero movie—China Development Bank Corporation, Industrial and Commercial Bank of China, and Bank of China. Sounds fancy, doesn’t it? Like some kind of *legitimate money-lending cartel*! But hold your horses; they haven’t yet confirmed when they’ll actually make it rain in Argentina. That’s right, it’s the *waiting game*, folks! And if all goes well, we might finally see some progress on these hydroelectric plants that have been stuck in development limbo longer than your last relationship.
The Dams: Jorge Cepernic and Néstor Kirchner
Let’s talk about these two monumental beauties. The Jorge Cepernic dam is like that friend who goes to the gym three times a year but talks about it nonstop. It’s 42% done and has a height of 41 meters. This baby is supposed to produce 1,780 GWh per year, which would increase hydroelectric energy generation by 15%. Because who doesn’t want a glorified water fountain contributing to their energy supply?
Then we have the Néstor Kirchner dam—tall enough to give you a stiff neck just looking at it! With a height of 73 meters and only 20% completed, it’s more of a vague dream than a project at this point. If it ever gets finished, it’s expected to churn out around 3,167 GWh annually, which sounds great until you realize it hasn’t even finished building its first brick.
The Key Meeting in the Negotiation
Imagine this: Representatives of the UTE (that’s *Unidad de Trabajo Equipo* for the uninitiated), which sounds like a pretentious French café, are gathering with Argentine authorities in *Beijing*. Great! *Two flags of potential miscommunication waving high in the air*. You’ve got the former Foreign Minister—now that’s a title that should come with a warning label—and a bunch of others discussing the progress of this stalled project. It’s as if they all met for a brunch with awkward silences punctuated by the occasional *“Can you pass the soy sauce?”* It’s amazing how politics can turn into a love-hate relationship fueled by duck sauce.
The 5 Keys: The Latin American Country That Will Receive US$800 Million from China
- Reactivation of hydroelectric works in Argentina: The Argentine government has requested $800 million from Chinese banks to resume construction of the Jorge Cepernic and Néstor Kirchner dams, located in Santa Cruz.
- Stoppage since December 2023: The work on these dams has been halted, pushing the timeline past an original completion date of 2020, which was already dubious at best.
- Impact on employment: The suspension of works has resulted in the loss of approximately 2,500 jobs. The reactivation of the projects would allow these jobs to be recovered, turning that frown upside down!
- Dam characteristics: The Jorge Cepernic dam, with a height of 41 meters and equipped with three Kaplan turbines, is designed to produce 1,780 GWh per year. Néstor Kirchner dam—73 meters and five Francis turbines—is stuck at 20% progress.
- Energy benefits for Argentina: These dams are projected to increase the national electricity supply by 4.5%, and add 15% to hydroelectric power generation. Let’s hope it’s worth the wait—like a fine wine or a bad sequel!
So there you go! There’s plenty to unpack in this *Argentinian tale of woe* turned international request for aid! Whether it’ll be a success story or yet another chapter in the never-ending saga of governmental bureaucracy remains to be seen. But one thing’s for sure: If these dams ever get built, they’ll be the most expensive water features in history!
The Argentine government, under the leadership of President Javier Milei, has formally approached a consortium of Chinese banks seeking a financial waiver to facilitate the urgent reactivation of the Jorge Cepernic and Néstor Kirchner dams, crucial projects in the province of Santa Cruz. This bold initiative aims to unlock approximately 800 million dollars in funding to recommence construction activities that have been stalled since December 2023, causing significant delays and causing the nation to miss its initial project deadline.
If the Chinese financial institutions grant this waiver, the Ministry of Economy will move swiftly to initiate the necessary procedures to ensure the disbursement of funds, thus breathing new life into the hydroelectric power station initiative. This step forward would mark a pivotal moment in a challenging journey marked by setbacks, with the original contract aiming for project completion in 2020 now extended due to unforeseen complications.
Dams awaiting the disbursement of 800 USD from China. Photo: RN Editorial.
Critically, the stalling of these vital construction works has led to the unfortunate loss of 2,500 jobs within the sector. By securing new timelines for the recommencement and eventual completion of these dams, there exists a promising opportunity to restore these positions. Although the exemption request is a significant milestone, enhancing the foreign exchange reserves of the Central Bank of the Argentine Republic (BCRA)—currently grappling with a negative balance of approximately 6 billion USD—continues to hinge on the successful resolution of contractual agreements.
Milei’s request to Chinese banks
According to official sources, the principal objective of the Argentine government remains the reactivation of these critical infrastructure projects. In pursuit of this goal, there is an intent to secure financing close to 800 million dollars through a consortium comprising major Chinese financial institutions, including the China Development Bank Corporation, Industrial and Commercial Bank of China (ICBC), and the Bank of China. However, the Ministry of Economy has yet to confirm a timeline for formalizing the request for disbursement.
The ambitious project, originally slated for completion in 2020, has now seen its timeline pushed back to 2027 due to a series of substantial hurdles exacerbated by the global pandemic and numerous shifts in leadership. This reality illustrates the complexities involved in the development, highlighted by the ongoing review of addendum 12 to the contract, a task spearheaded by Enarsa alongside the companies responsible for construction.
China Development Bank Corporation, the engine that drives the Government’s economic development policies. Photo: Wikipedia.
The dams: Jorge Cepernic and Néstor Kirchner
The Jorge Cepernic dam, designed to stand at 41 meters, currently faces a 42% halt in progress while equipped with three Kaplan turbines that are expected to generate an impressive 1,780 GWh annually. Once operational, it promises to yield a 15% boost in hydroelectric power output and a 4.5% enhancement in the national electricity supply. These strategic hydroelectric facilities are strategically located just 145 kilometers from the tourist hub of El Calafate, emphasizing their potential importance to energy supply and local development.
Conversely, the Néstor Kirchner dam, engineered to reach a height of 73 meters and fitted with five Francis turbines, has experienced painfully slow advancement, with only 20% of its structure complete at this point in time.
Aerial view of the construction works of the Jorge Cepernic hydroelectric plant, located in the province of Santa Cruz, next to the Néstor Kirchner dam. Photo: Dialogue Earth.
The key meeting in the negotiation
In late April, a pivotal meeting took place in Beijing, where representatives from the UTE—tasked with managing the dams along the Santa Cruz River of which China Gezhouba Group International holds a 54% stake, Eling Energy Argentina possesses 36%, and Hydrocuyo contributes 10%—gathered with Argentine representatives to discuss project progress. Officials present included former Foreign Minister Diana Mondino, who has since been succeeded by Gerardo Werthein, alongside Plaza Ambassador to China, Marcelo Salvia, Central Bank President Santiago Bausili, and Secretary of Finance Pablo Quirno.
Official reports confirm that the dams represent a focal point in Argentina’s diplomatic relationship with China, underscoring their significance. Notably, they also mentioned that the funding allocated for this initiative was nearly depleted during the prior administration amidst an election cycle.
Pablo Quirno, Secretary of Finance; Chinese Foreign Minister Wang Yi; former chancellor Diana Mondino and the head of the Central Bank, Santiago Bausili. Photo: Argentine Foreign Ministry.
The 5 keys: the Latin American country that will receive US$800 million from China
- Reactivation of hydroelectric works in Argentina: The Argentine government has requested a disbursement of approximately $800 million from Chinese banks to resume construction of the Jorge Cepernic and Néstor Kirchner dams, located in Santa Cruz.
- Stoppage since December 2023: The works on these dams have been stopped since December 2023, accumulating years behind the original plan that projected their completion by 2020.
- Impact on employment: The suspension of works has resulted in the loss of approximately 2,500 jobs. The reactivation of the projects would allow these jobs to be recovered and new dates for the completion of the dams to be established.
- Dam characteristics: The Jorge Cepernic dam, with a height of 41 meters and equipped with three Kaplan turbines, is designed to produce 1,780 GWh per year. The Néstor Kirchner dam, 73 meters high and with five Francis turbines, has a generation projection of 3,167 GWh per year.
- Energy benefits for Argentina: Once completed, these hydroelectric plants will increase the national electricity supply by 4.5% and hydroelectric power generation by 15%, contributing significantly to the country’s energy development.
What are the expected outcomes of the discussions between Argentina and the China Development Bank regarding infrastructure projects?
D of the China Development Bank at a previous bilateral meeting. Photo: RN Editorial.
The urgency surrounding the discussions reflects the critical role these projects play not only in Argentina’s energy strategy but also in its broader economic recovery. As the country seeks to revitalize an essential sector, the consensus among officials is that a renewed partnership with Chinese banks could be a game-changer. Expectations are that this collaboration might also extend beyond just financial backing, potentially fostering stronger ties in technology and energy innovation.
However, skepticism remains pervasive. The unfinished status of the Jorge Cepernic and Néstor Kirchner dams is a stark reminder of previous setbacks that have plagued similar large-scale infrastructure projects in Argentina. Critics are wary of whether securing the additional funding will actually translate into tangible progress on the ground. After all, history has shown that when it comes to large public works in Argentina, ambitious plans often falter under bureaucratic red tape and management challenges.
Ultimately, as the negotiations move forward, the Argentine government finds itself at a crossroads—whether to execute these long-stalled projects efficiently or to risk becoming yet another example of unfulfilled promises and dashed hopes in the realm of public works. As the deadline for these dams continues to stretch, all eyes are watching to see if Argentina can finally turn this vision into reality. Whether it’s the dawn of a new energy era or just another chapter in a blue-sky project saga, one thing is certain: the stakes have never been higher.
Onlookers eagerly await updates on the dam projects as they pivot towards a hopeful future. Photo: RN Editorial.
