In recent years, Argentina joined two initiatives promoted by China of great potential and relevance: the Asian Infrastructure Investment Bank and the Belt and Road Initiative. In this document we explain how to request information from these institutions and how to make complaints when their projects affect the rights of communities.
Tag Archive for: Infrastructure Financing
In recent years, Argentina joined two initiatives promoted by China of great potential and relevance: the Asian Infrastructure Investment Bank and the Belt and Road Initiative. In this document we explain what they are and why we are interested in knowing them.
Much of what happens in Argentine foreign policy is linked to China, hand in hand with its growing global influence, which is why it is important to know initiatives such as the Asian Infrastructure Investment Bank and the Belt and Road Initiative. , in which China is its main promoter. At Fundeps we share documents with basic and accessible information about these initiatives, placing emphasis on practical resources to access information and their accountability mechanisms.
“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 Belt and Road Initiative (BRI) represents China’s flagship global connectivity and infrastructure development program that aims to boost trade and new political and economic ties with participating nations, primarily emerging and “developing” countries. ”. For its part, the Asian Infrastructure Investment Bank (AIIB) is a multilateral development bank created in 2015 at the initiative of China that currently has more than 100 member countries around the world and finances projects in other regions, such as Latin America and the Caribbean or Africa.
The AIIB is closely linked to the Belt and Road Initiative not only because the processes of formation of these two instruments were promoted by Chinese President Xi Jinping and occurred simultaneously, but also because the AIIB constitutes the main tool financing for projects that are part of the IFR. Likewise, both are part of a process of geopolitical reconfiguration where the center of gravity of the world economy turns towards the Asia Pacific. Furthermore, both have been the subject of criticism since their inception in relation to the negative environmental and social impacts that their projects have generated and the lack of transparency, accountability and citizen participation in their design and implementation.
The role that the AIIB and the IFR play – and will play in the medium-short term – in Argentina is much closer and more tangible than we believe: although they seem like initiatives or actors that are distant and unrelated to the local reality, through Their actions promote or facilitate the implementation of large infrastructure and energy projects in the country that, in turn, have – or may have – a direct or indirect impact on people’s daily lives and may affect social and/or environmental rights. , especially from the populations and communities linked to the projects. In fact, there is already a first approved project in Tierra del Fuego that will be financed by the AIIB for an amount of 65 million dollars and, within the framework of the IFR, there are various projects committed in our country. For this reason, it is essential to monitor them, know how to access information about the projects and how to file a complaint with the Bank’s accountability mechanism.
In addition to this and given the frequent lack of transparency of Chinese banking and the general lack of knowledge about it, at Fundeps we share these updated brochures with summarized information about the AIIB and the Belt and Road Initiative. We also added instructions on how to make a complaint to the Project Affected Persons Mechanism (PPM), the AIIB’s accountability mechanism.
How does the situation influence?
During the current government of Javier Milei, diplomatic ties between both countries have been strained due to the reconfiguration of the new administration’s foreign policy, with greater geopolitical alignment with the United States and the West. We can also mention certain measures such as the decision of the Argentine government to visit the Chinese space base in Neuquén or renounce Argentina’s membership in the BRICS bloc, the brake on infrastructure works with Chinese financing or even statements by the President himself or of Foreign Minister Diana Mondino. This has been reflected, among other things, in the difficulties in the negotiations to renew the swap with China – currency exchange between the central banks of both countries – or in the weakening of the commercial link, which has moved China to fourth place. place as Argentina’s trading partner, currently positioning itself behind Brazil, the European Union (EU) and the United States.
However, it is worth highlighting that the link between Argentina and China continues to be very important, and will continue to be so in the future, regardless of the government in power.
A bilateral relationship of a strategic nature
The bilateral relationship between the People’s Republic of China and Argentina has been strengthening in recent decades and has acquired greater relevance since the 2000s, becoming established, almost 10 years ago, as a Comprehensive Strategic Association. It includes an expansion in the areas of cooperation and covers not only economic and financial aspects but also political, commercial, technological, cultural, health and investment matters. This strengthening of ties was reflected in the incorporation of Argentina to the two initiatives mentioned here.
The signing of a Joint Declaration in 2004 and the Comprehensive Strategic Association in 2014 have been, at the diplomatic level, two unavoidable antecedents to understand Argentina’s entry into the IFR and the AIIB. Given the continuity and long-term projection of the Sino-Argentine link, it can be said that Argentina’s entry into the IFR (in 2022) and the AIIB (from 2021, as a non-regional member), are consistent with the rapprochement and consolidation of bilateral relations since their normalization in 1972 and crystallize this long-standing bond between both countries, posing both opportunities and challenges for our country.
- Document: The Asian Infrastructure Investment Bank and the Belt and Road Initiative: what are they and why do they matter in Argentina?
- Document: How to access information and make a complaint at the Asian Infrastructure Investment Bank and the Belt and Road Initiative?
- Infographic on the Asian Infrastructure Investment Bank.
- Infographic on the Belt and Road Initiative (or “New Silk Road”).
Contact
Gonzalo Roza, gon.roza@fundeps.org
From September 25 to 26, in Sharm El Sheikh, Egypt, the eighth Annual Assembly of the Asian Infrastructure Investment Bank (AIIB) was held, an event that brings together its members, business representatives and civil organizations to discuss the direction strategy and initiatives of the organization. At this meeting, the AIIB announced the approval of the first loan in Argentina, intended to finance a wind farm in Tierra del Fuego.
“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 main objective of the Annual Assembly is to share the Bank’s progress and receive suggestions regarding its strategic direction and operations. It also provides information and encourages exchanges on policies and projects financed by the AIIB in terms of social and environmental impact.
The central theme of the 8th Assembly was “sustainable growth in a challenging world” and highlighted the importance of addressing the global climate agenda and supporting key infrastructure demands for AIIB member countries. The meeting program covered a variety of Thematic topics that include the latest trends and priorities of the Bank. The public sessions were grouped into three thematic streams: sustainability, connectivity and multilateral cooperation. They addressed issues related to the development and implementation of sustainable environmental infrastructure, as well as the promotion and strengthening alliances that improve infrastructure connectivity both in Asia and in other regions.
First AIIB project in Argentina
A particularly relevant event for Argentina was the announcement, during the event, of the approval of the project called “Energy transition of the province of Tierra del Fuego” for an amount of 65 million dollars. This project marks a milestone, as it represents the first financing granted to Argentina as a member of the Bank, which it officially joined in March 2021. The funds will be used for the construction of a wind farm near the city of Río Grande. . According to the AIIB, the main objective of the project is to establish the wind energy generation capacity in the province of Tierra del Fuego and it “is aligned with the objectives of the Paris Agreement and the Nationally Determined Contributions of Argentina, for which will help reduce greenhouse gas emissions and increase the adoption of renewable energy.” This initiative arises from the need to take advantage of the wind resources that the province has and the lack of interconnection in local networks for the materialization of projects of such magnitude.
However, it is important to highlight that given the scarcity of information about the project, it is essential to analyze in depth how the project will be carried out, and what the true implications could be in terms of socio-environmental impacts. For this reason, at Fundeps we are monitoring this project and have made a request for information to the AIIB about details that are not yet clear. For example, although an Environmental and Social Management Plan (PMAS) and a Stakeholder Participation Plan (PPPI) have been published on the Bank’s website, the documentation related to the Environmental Impact Assessment is not yet available. and Social, the Environmental and Social Due Diligence Report or information related to the public hearings planned for the project, among other relevant documentation.
This information is key to identifying the real impacts of the project and verifying whether access to information about the project and the participation of the local population is effectively ensured. In turn, another aspect that raises doubts is the role that the CAF (current Development Bank of Latin America) will have in relation to the project, since it has been presented as a co-financed project between both multilateral institutions.
Author
Candela Jauregui
Contact
Gonzalo Roza, gon.roza@fundeps.org
This article aims to analyze the consequences of Argentina’s entry into the Asian Infrastructure Investment Bank. The structure of the Bank is analyzed, covering its characteristics and the performance of the institution in general terms, the repercussions of Argentina’s entry are considered, contemplating advantages and disadvantages and, finally, the effects associated with joining this institution are considered. to China’s projection on the international stage.
This document presents an analysis of the background and motivations that led Argentina to become a member of the AIIB and the implications that derive from it, as well as the possibility that Argentina advances in its incorporation into the BRI in the short term. In the same way, the challenges and opportunities that both initiatives represent for the country are addressed.
The “CONAFIPS COVID-19 Credit Line project” has made Ecuador the first Latin American country to receive a Latin American loan from the Asian Infrastructure Investment Bank. This report reviews the project, emphasizing its fundamental characteristics, context, environmental and social standards, and main criticisms and concerns about it.
On March 3 and 4, we participated in the workshop on Final Beneficiaries of Companies in the extractive and energy sector of Argentina, held in the City of Buenos Aires. The event was organized by Opening Extractives (a program co-implemented by EITI and Open Ownership) and the Argentine Journalism Forum (FOPEA).
“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 workshop had among its objectives to raise awareness about the importance of public information of the final beneficiaries, and at the same time, provide resources and materials to increase research, projects and analysis within this field.
In this sense, the training was divided into three modules: first, content and information on final beneficiaries was presented, from the theoretical to the legal and also practical, both nationally and internationally. Those who spoke in this first module were: Andrés Knobel from the Tax Justice Network; María Eugenia Marano, specialist in corporate law; Pamela Morales, Undersecretary of Mining Development of the Government of the Nation; Gonzalo Fernández of the Ministry of Mining Development of the Nation; and Lucía Cirimello from the Extractive Industries Transparency Initiative (EITI).
Secondly, civil society organizations had the opportunity to present their projects related to the theme. In this way, Edgardo Livitnoff (Red Ruido Coordinator) presented progress on the report “Lithium and transparency in Argentina” that we prepared together. For her part, Eugenia Rodríguez (Centro de Economía Política Argentina) shared details about the work of her organization: “The rich of Argentina”.
Finally, the third module consisted of a practical workshop given by Mariel Fitz Patricks, in which tools and resources were provided for approaching final beneficiaries. The journalist helped us, mainly, to access information and how, in this way, to enrich work carried out and to carry out on the subject.
This instance was very fruitful, not only in terms of knowledge and learning, but also in terms of the possibility of meeting peers from other civil society organizations, with whom one could work together in the near future.
More information:
Author
Maitén de los Milagros Fuma
Contact
Maria Victoria Sibilla, ninasibilla@fundeps.org
This interactive map presents 9 cases of projects that have the participation and financing of Chinese companies, which are monitored by the Regional Group on Financing and Infrastructure (GREFI) and the Regional Coalition for Transparency and Participation in Peru, Argentina, Colombia and Brazil.
The objective is to make known the basic information of the projects, the location, the current situation and the socio-environmental impacts that have generated or that could be generated if they are implemented.
From the Regional Group on Financing and Infrastructure (GREFI) we held the workshop in 2021: “Follow-up on relations between China and America America: exchange of experiences”. This space brought together different civil society organizations, academia, indigenous leaders and journalists from the region who monitor the relationship between China and Latin America, or have been impacted by investments from the Asian country.
The objective of the space was to identify common issues and key elements of discussion, based on the work and the experience of monitoring and advocacy that serves to promote greater articulation between the actors, identify the differences, limitations and opportunities for joint work.
The Comprehensive Gas Infrastructure Program – or the Trunk Gas Pipeline Program – promoted by the government of the Province of Córdoba, came to an end in 2019 with the completion of the works. By 2022, works continue at the municipal level, and the program has already begun its phase of connection to the natural gas network. However, there are still doubts about how citizens will be able to access the service, especially those who are located in vulnerable sectors.
“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”.
Access to public information and transparency are constituted as a fundamental human right. People have the right to know what will be planned for their communities and based on this, make informed and pertinent decisions about the development processes that will affect their lives.
In the field of public policies, providing and guaranteeing access to public information is the cornerstone of good governance. Transparency is vital to enable individuals and communities to hold their institutions accountable and to foster trust in government and reduce corruption. Ensuring this right results in the generation of opportunities for citizens to learn, grow and make better decisions for themselves and those around them.
Reference to this is relevant when analyzing public policies and programs that aim to contribute to large-scale development. Such is the case of the Comprehensive Gas Infrastructure Program promoted by the Government of the Province of Córdoba. This series of infrastructure works began in 2015 and ended in 2019, with the purpose of “strengthening the natural gas supply to homes, businesses and industries.” According to the Government, 890 million dollars were invested to deploy 2,801 kilometers of pipes that will give the possibility of connecting to the natural gas network to 972,430 Cordovans without service. However, the planning began long before the year of implementation and under sustained skepticism due to the lack of information and transparency regarding its financing, its potential environmental and social impacts, the number of total beneficiaries, among others.
After the end of the project in 2019, there were still doubts about what the connection process would be like for the localities and how citizens would have effective access to the service. Similarly, there were also infrastructure works to be completed at the municipal level. By July 2021, the Government declared that 75 localities already had access to natural gas after the trunk gas pipeline program. Mention was made of the number of inhabitants who will benefit, without regard to information regarding their location and other data that show whether the gaps in inequality in access have begun to close or may be closed as a result of this work. This is of vital importance since the government also spoke about the Bancor credit network for homes and businesses, which would facilitate the connection and obtaining the service. It remained to be seen how those marginalized and vulnerable groups who will find it difficult to access this benefit will be supported, and who therefore will not have access to natural gas -or will be able to do so in the distant future.
Towards 2022 the doubts regarding the scope of this project for the population of Cordoba have not yet dissipated. According to Cordoba news portals, the connection of companies and businesses to the natural gas network is progressing at a much faster pace than the connection of homes. This discrepancy arises more than anything else because connecting to the network is expensive and involves decision-making at the family level. Even when the conditions have been provided to facilitate access – through credits, and the now confirmed support from the provincial government for vulnerable families – not all people are in equal conditions to quickly decide to join the network. In many cases, the connection also requires the structural adaptation of houses and the purchase of household appliances.
Regarding the latter, access to information and transparency play a fundamental role. In the first place, because if the project had been published and socialized correctly with the populations of the affected localities, the families could have decided to plan in advance the connection to the network. Secondly, the role played by government officials when informing and publishing the documentation regarding a project of this caliber is evidenced. This was left in the hands of the municipal level and its mayors, and in many cases their actions to inform the population were deficient -especially considering that works have also been needed at the municipal level to guarantee the connection-.
The practice of publishing information such as the publication of documents does not mean or result in an informed citizenry. Added to the open data and active transparency initiatives are actions aimed at informing the population, such as public consultations. These spaces work -or should work- as opportunities to socialize information about projects and public policies, obtain feedback from citizens and work on a co-creation process. During the beginning of the work of trunk gas pipelines, a good part of the challenges identified had to do with the lack of public consultations -required by law- and the general misinformation of the people about the possible impacts and benefits of the project.
Towards 2022 there is no accurate information on the works carried out in the localities and the public consultations that have been carried out with neighbors. The existence of these instances play a crucial role in citizen decision-making. Especially in these cases when it is a duty to report on the project, warn of the impacts, clarify the benefits and clarify the alternatives that families would have to access the network gas service.
In this sense, even though the work of the Trunk Gas Pipelines represents a great advance for the Province of Córdoba, and the possibility of closing the inequality gaps in access to natural gas, the serious problems regarding access to public information still stand out, transparency and accountability. A project of this magnitude should have had clear and concise information for the population from the beginning, communication channels with citizens, much more transparent work award processes, etc. The process has not yet finished, and there is an opportunity for the provincial government to make an effort to make transparent what remains to be done.
More information
- Trunk gas pipelines: we make requests for information from agencies in the province of Córdoba
- Trunk Gas Pipelines and the difficulty of accessing public information in the province
- With the trunk pipelines concluded: positive or negative balance?
Author
Agustina Palencia
Contact
Gonzalo Roza, gon.roza@fundeps.org
*Photo taken from losprimeros.tv
This report aims to carry out a comprehensive and in-depth approach to the Agua Negra International Tunnel (TIAN) project between Argentina and Chile, including its technical, strategic, political, economic, social and environmental dimensions.