How does infrastructure fare in Argentina’s 2023 budget bill?

Bnamericas Published: Tuesday, September 27, 2022
How does infrastructure fare in Argentina’s 2023 budget bill?

Transport and water projects in Argentina would receive over 418bn pesos (US$2.8bn) in direct investments if the proposed budget for the 2023 bill is passed by congress. 

Last year, congress rejected the government’s proposed budget for 2022, forcing President Alberto Fernández to extend the 2021 budget into this year.

However, sources from the opposition said during the weekend that this proposal is more likely to succeed, at least when put to a general vote, reported local daily Ámbito. 

Due to Argentina’s fiscal problems and the lack of access to international finance markets to fund projects, some of the money for projects will come from multilateral agencies such as the Inter-American Development Bank (IDB), the Latin American Development Bank (CAF) and River Plate basin development fund Fonplata.

The government agencies that will manage the money for infrastructure include highway authority Vialidad Nacional, which would handle the following investments:

National route 7, Luján-Junín highway (6.89bn pesos assigned for 2023)
National route 19, San Francisco-Córdoba highway (6.66bn pesos)
National route 33, Rufino-San Eduardo highway (7.8bn pesos)
National route 11 (3.3bn pesos)
National route 66, Salta access-San Pedro de Jujuy-national route 1V66-Jujuy provincial route 9 (7.2bn pesos)
National route 158 (3.5bn pesos)
National route 9, widening, Rosario stretch (4.7bn pesos)
National route 33, Rufino-Rosario stretch (14.5bn pesos)
National route 7, Potrerillos-Uspallata highway safety works (4.6bn pesos)
National route 73, paving (4.8bn pesos)

For 2023, Vialidad Nacional’s goals include rehabilitating a total of 2,292km of roads, completing the construction of 261km of highways, as well as having 1,192km of highways under construction, among others. 

In the case of water investments, national waterworks agency Enohsa has funds assigned for the following projects: 

Alderetes and Salí river basin rain drainage collectors (1.7bn pesos)
Alderetes wastewater treatment plant expansion (1.1bn pesos)
Vipos-Tucumán aqueduct (3.8bn pesos)
San Luis east aqueduct (4.6bn pesos)

Enohsa’s goals for next year include carrying out 65 potable water projects and finishing another 87 initiatives. It also wants to have 262 water projects in the Argentina Hace program underway. 

Other water and transport projects would be overseen by the public works ministry, which has funds allocated in the budget proposal for the following : 

Lanús wastewater treatment plant (1.1bn pesos)
Riachuelo water system, Lots 1, 2 and 3 (13.4bn pesos)
Buenos Aires urban corridor rehabilitation program, stage II (5bn pesos)
Buenos Aires urban corridor rehabilitation program, stage III (37bn pesos)
Buenos Aires urban corridor rehabilitation program, stage IV (7.5bn pesos)

The ministry’s targets for 2023 include completing two potable water expansion projects, five sewerage expansions, paving 82km of roads and completing 100 urban infrastructure improvement projects, among others.

Lastly, the transport ministry has the following funds allocated: 

Roca rail line, rolling stock acquisition (7.3bn pesos)
Mitre rail line, modernization (9.4bn pesos)
Belgrano Sur rail line, modernization (5.8bn pesos)
Belgrano Sur, rail line, renovation. M Ramal Tapiales-Marinos del Crucero General Belgrano Stretch (8.02bn pesos)
Roca line, renovation. Constitución-La Plata Stretch (5.9bn pesos)
Belgrano Cargas freight rail line, rehabilitation (23bn pesos)

The ministry would also have 66bn pesos for the public transport compensation fund, which subsidizes services outside the capital and has been a point of dispute between the federal and provincial governments.

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