Argentina Needs To Invest US$290 Billion In Infrastructure By 2024

Patrick Archer competitiveness, foreign investment, real estate

Argentina will need to invest US$290 billion over the next ten years in order to finance the myriad large-scale infrastructure projects the country needs to either initiate or expand.

The estimates from Argentina consulting firm, E&R, which cautions: “reaching an agreement (with the holdouts) would be critical in order to attract the foreign direct investment (FDI) and secure financing for all of the infrastructure projects our country will need over the next decade which will reach approximately US$290 billion.

The firm says US$250 billion or 86% of these investments should be channeled toward the holy trinity of local infrastructure: highway construction, electric energy generation and oil and gas exploration.

Specifically, the report says hydrocarbons alone will demand investment of US$107 billion. Over the same period, electric energy generation will require US$38 billion of which US$25 billion is for generation and US$13 billion is for distribution. Updating and maintaining these investments will require another US$50 billion.

The maintenance and expansion of Argentine highways over the next decade will require another US$58 billion, railroads and subways will demand US$34.5 billion, water/sewer projects will cost US$6.5 billion and cellular telephone network upgrades will exceed US$1 billion.

The report concludes with words of encouragement for short-term sacrifice and long-term stability: “Reaching an agreement with the holdouts re-opens the possibility for us to return to the global capital markets. Our country risk and financing costs would also come down transforming the country into a good platform for direct foreign investment.” (Full Story in Spanish)

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