The largest infrastructure project in the province of Cordoba has Chinese funding. Two Chinese banks: ICBC and Bank of China will finance 80% of the 8,400 million pesos of the trunk gas pipeline work in the province.

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The map of the ten trunk duct systems had been divided into three groups. The first one assigned to the Brazilian construction company Odebrecht. The second to the construction company China Communications Construction Company and the Argentine construction company Iecsa S.A. And the third to the construction company China Petroleum Pipeline Bureau and the Argentine company Electroingeniería S.A.

One of the formalities that the province had to fulfill was to have the guarantees of the national government to access external financing and, at the same time, guarantee that debt with funds from the federal co-participation.

The works began on August 14 of this year by the Brazilian construction company Odebrecht. This was the only company awarded that presented own financing for the work and does not depend on loans from Chinese banks.

In the month of October, the province placed a debt for 150 million dollars to 10 years of term.

And now in December the Chinese investments were confirmed. The gas pipelines in the provincial interior that will be financed by loans from the two Chinese banks were awarded to the transitory union of companies that formed the Cordobesa Electroingeniería, the China Petroleum Pipeline Bureau and the port of Iecsa, in partnership with the Asian China Communications Construction Company (CCCC). In charge of the negotiation with the Chinese banks is the Minister of Investment and Financing Ricardo Sosa.

From FUNDEPS we are monitoring this project, we have met with officials of the Córdoba Agency for Investment and Financing (ACIF), and we have submitted requests for information to provincial and national ministries. The terms of the legislation that regulates access to knowledge of State acts have expired and there is still no response from the corresponding units.

The questions generated by a work of this magnitude are several. No details have been given of the agreements reached with Chinese banks, it has not been established how this project will effectively reach each of the municipalities involved, nor are the environmental impact reports known. From FUNDEPS, it will be sought that these infrastructure projects do not negatively impact the living conditions of the communities or the environment.

More information

Gas pipelines: Schiaretti reviewed with Prat Gay the progress of contracts with Chinese companies

Gas pipelines: the Nation signs guarantees for Chinese credits

Contact

Gonzalo Roza / Coordinator of the Global Governance Area

gon.roza@fundeps.org