Asian Infrastructure Investment Bank: Key Insights from the First Financing in Argentina
In September 2023, the Asian Infrastructure Investment Bank (AIIB) approved its first financing operation for Argentina, amounting to USD 65 million, aimed at the construction of a wind farm near Río Grande, in the province of Tierra del Fuego. This was the institution’s first project in the country since Argentina’s official accession to the AIIB in 2020.
However, despite its approval, the project was recently cancelled. The reasons for this decision include the lack of sovereign guarantees and a shift in the national political landscape following the inauguration of President Javier Milei in December 2023.
The analysis conducted by FARN, Fundeps, and Fundación CAUCE examines the project, its socio-environmental implications, and the challenges it poses in relation to international financing for the energy transition. In addition, the document offers a review of the AIIB’s role in the region and the institutional framework governing its involvement in infrastructure projects.
The case of the wind farm in Tierra del Fuego illustrates how the interplay between geopolitics and changes in national priorities can influence the implementation of strategic projects. It also underscores the importance of transparency, access to public information, and effective mechanisms for citizen participation, particularly when projects may generate impacts on protected natural areas, such as the Atlantic Coast Reserve, a Ramsar site of international importance for migratory birds.
This study builds on the ongoing monitoring work carried out by these organizations on international financial institutions operating in Latin America.
Update
After the document went to press, the AIIB officially cancelled the project due to the Argentine National State’s failure to provide the required sovereign guarantee.
Although this decision alters the project’s administrative status, it does not diminish the relevance of the analysis, which remains key to understanding how such financing mechanisms are structured, what standards apply, and the opportunities and tensions facing Argentina’s energy transition.
The official project information sheet is available at:
https://www.aiib.org/en/projects/details/2025/_download/Argentina/P000654-Argentina-Tierra-del-Fuego-Energy-Transition-Support-Project-PSI-Oct.-7-2025.pdf
A necessary debate on the energy transition
The AIIB’s experience in Argentina raises important questions about how to advance toward a just energy transition, supported by robust socio-environmental safeguards, effective citizen participation, and coherence between local needs and international commitments, as well as the role of multilateral development banks.
From our organizations, we continue to promote the production of public information, citizen oversight, and the defense of environmental rights as fundamental pillars of a transition that respects territories and communities.
Contact:
Gonzalon Roza, gon.roza@fundeps.org
