Tag Archive for: Infrastructure Financing

,

Follow-up of relations between China and Latin America: exchange of experiences

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.

Descargar Documento / Download File
,

Trunk gas pipelines: What will happen to the most vulnerable population?

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

Author

Agustina Palencia

Contact

Gonzalo Roza, gon.roza@fundeps.org

 

*Photo taken from losprimeros.tv

Agua Negra International Tunnel: Benefits and concerns of a strategic work in the integration between Argentina and Chile

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.

Descargar Documento / Download File
,

What does joining the Asian Infrastructure Investment Bank imply for Argentina?

Since 2021, Argentina officially integrates the Asian Infrastructure Investment Bank. For our country, the AIIB represents a new multilateral source of financing for strategic sectors such as infrastructure, energy, telecommunications and transportation, among others. However, the AIIB is a little-known bank. How does it work and what are the implications for the country of joining this institution promoted mainly by China? We present a new report with the analysis.

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.

On March 30, 2021, Argentina’s membership of the Asian Infrastructure Investment Bank (AIIB) was made official. The AIIB officially began its activity in October 2014. It is a new multilateral development bank promoted mainly by China with a focus on investments in infrastructure, especially aimed at emerging countries. Its Asian origin does not limit its actions to a single region, since the Bank has a large number of member countries in other continents and projects financed in South America, Africa and Europe.

The model proposed by China has distinctive features. The dominant feature is that the investments are focused on infrastructure, connectivity and industrialization, marking an important difference with Western development financing entities that, in recent times, have oriented their loans mainly to institutional reforms, health projects, education or fighting against poverty, among others.
In this way, it postulates an interesting alternative for the financing of an infrastructure that is largely in deficit in Latin America and, particularly, in Argentina. For our country, the AIIB represents a new multilateral source of financing for strategic sectors and opens an opportunity to help solve its historical deficits in terms of infrastructure and connectivity. For its part, with still little participation from Latin America, the Asian Bank is consolidating itself as a viable option for the region in light of development goals. To date, five effective Latin American members are reported: Argentina, Brazil, Uruguay, Ecuador and Chile.

From its origins, the AIIB was presented as a different option to the historical Western multilateral development institutions such as the World Bank, the IDB or the International Finance Corporation (IFC). However, the AIIB has implemented a regulatory and operational framework very similar to that of those institutions, including policies for access to information, accountability, and environmental and social regulation to authorize disbursements. In turn, it contemplates cooperation and co-financing with other multilateral banks, such as the World Bank and the Asian Development Bank, adhering to their regulatory frameworks.

Despite this, since its entry into operations the Bank has received criticism from various sectors of civil society and affected communities that have questioned its actions in different development projects and even certain weaknesses in its regulatory framework.

In this sense, the implications that admission to the AIIB may have for Argentina depend largely on the type of relationship that the country establishes with the institution and the way in which it manages to take advantage of the potential financing resources for infrastructure that the Bank can provide. . Likewise, it is necessary to avoid repeating the problems related to public participation, access to information and socio-environmental impacts that have historically been associated with development projects financed by multilateral banks.

Given the general ignorance that exists in the country about this institution, it is important to analyze in depth what the Bank consists of, how it works and what the true implications of Argentine membership may be. To contribute to this objective, from Fundeps we present a report that analyzes part of these questions.

Read full review

 

More information

The incorporation of Argentina to the Asian Infrastructure Investment Bank – Fundeps was approved
Argentina, one step away from becoming a member of the Asian Infrastructure Investment Bank – Fundeps
Are the brothers united? Profiling of the Sino-Argentine relationship in the government of Alberto Fernández – Fundeps
The role of the AIIB in the New Green Silk Road – Fundeps

Author

Camila Victoria Bocco

Contact

Gonzalo Roza, gon.roza@fundeps.org

,

Access to information on projects with Chinese financing

Within the framework of the day of access to public information, we presented the document “Access to Information in Argentina. Difficulties and lessons learned accessing information on infrastructure and energy projects with Chinese financing in the country ”.

“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 People’s Republic of China is the second world economy, with great relevance in international trade and financing and the provision of direct foreign investment, being Latin America, and in particular Argentina, one of the largest recipients of investments in infrastructure of Chinese origin .

Despite this, one of the main challenges that arise when analyzing the growing Chinese financing of projects both in the region and in Argentina, is the lack of transparency and the difficulty in being able to access detailed, accurate and official information about of these projects. Thus, in many cases, the scant information available about the investment amounts, the actors involved, the financing conditions or even the particularities of the projects, make it difficult to carry out a detailed follow-up and monitoring of them and even their impacts. and implications for the country or region where it is carried out.

At the same time, the evaluation of China’s compliance with the principles enshrined in the Universal Declaration of Human Rights carried out by the United Nations in the framework of the Universal Periodic Review (UPR) shows that many development and infrastructure projects of Chinese companies are not compatible with human rights, nor respectful with the environment and the sustainability of natural resources, causing impacts not only economic but also social, environmental and cultural. Hence, the information on these projects must necessarily be transparent and provided in a timely and efficient manner, especially to those communities and populations that are affected by them.

Starting from this panorama, this publication seeks to identify difficulties and lessons learned from the practical experience of accessing information on infrastructure and energy projects with Chinese financing in Argentina. For this purpose, a series of requests for information were made within the framework of the Law on Access to Public Information No. 27,275 in force in the country. Likewise, the experience of access to information from state and non-state sources was evaluated, mainly portals and journalistic media that focus on Sino-Argentine ties.

Based on the identification of some of these existing difficulties when accessing information on the subject, reflections and lessons learned are provided that feed a list of recommendations aimed at strengthening the right of access to information in Argentina.
Transparency and correct and timely access to information are presented as key elements to better understand the growing participation of China in the financing of infrastructure and energy projects in our country. Precisely, access to information, transparency and infrastructure projects should go hand in hand if you want to achieve sustainable and quality infrastructure.

DOWNLOAD THE PUBLICATION

More information

Contact

  • Gonzalo Roza, gon.roza@fundeps.org

Access to information on projects with Chinese financing

This report seeks to identify difficulties and lessons learned from practical experience accessing information on infrastructure and energy projects with Chinese financing in Argentina.

Descargar Documento / Download File
,

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.

“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 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

,

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

Author

Mariano Camoletto

Contact

Gonzalo Roza, gon.roza@fundeps.org

,

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.

“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”

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

Author

  • Sofia Armando

Contact

,

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.

“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”.

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

Contact

Gonzalo Roza, gon.roza@fundeps.org

,

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.

“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 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.

Author

Sofia Brocanelli

Contact

Gonzalo Roza, gon.roza@fundeps.org

,

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.

“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 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