China Eximbank pledges $130 million for projects “Cierre Energético Norte Los Conquistadores - La Paz” and “Gasoducto Productivo III del Noroeste Entrerriano” in Argentina

In October 2018, China Eximbank agreed to a loan worth $100 million for the development of" Cierre Energético Norte Los Conquistadores - La Paz” and “Gasoducto Productivo III del Noroeste Entrerriano", a pair of gas infrastructure projects to be built in Entre Rios province. The projects will involve the construction of a 132KW electric transmission line to supply electricity to the northern region of the province, and also include the extension of up to 200km of optical fiber. China National Technical Import and Export Corporation (CNTIC) will be aiding in the construction of gas works, high voltage lines and fiber optics for the project. In addition, infrastructure will be set up to supply natural gas to the corridor "Los Conquistadores, Chajarí, Villa del Rosario y Santa Ana". The work will also be implemented by Argentine contractors, but progress is unknown currently. On October 29, 2018, Argentina's Ministry of the Interior, Public Works and Housing and Undersecretary of International Financial Relations signed a framework agreement for commercial exchange cooperation between the Province de Entre Ríos and the China National Import and Export Technical Corporation (CNTIC). The project is meant to construct a 132 kw electric transmission line in the northern region.The project also consists of the interconnection of the two main gas pipelines which would supply gas to Los Conquistadores- Chajarí-Villa del Rosario and Santa Ana. On May 17, 2019, Argentina's Minister of Finance, Nicolás Dujovne, and the Undersecretary of International Financial Relations, Martín Soto, had a meeting with a delegation from the Export Import Bank of China. During this meeting the Exim Bank of China delagation began to analyze a financing project for this project worth at 130 million USD. Also at the meeeting, Energía de Entre Ríos SA (ENERSA) was put in charge of the project's infrastructure execution. At the end of the meeting, the groups ratified their shared interest in funding these types of projects based in thee renewed Joint Action Plan 2019-2023, signed by the respective governments on December 2, from 2018, but they did not commit yet to the financing the project. In 2020, there were more negotiations set up for the project, but the Covid-19 Pandemic resulted in their postponement. Afterwards, it was reported that the project's financing from China and ENERSA will not be implemented due to a high cost of items such as insurance that increased the financial value of the loan.

Additional details

1. The project has two names: "Cierre Energético Norte Los Conquistadores - La Paz" and "Gasoducto Productivo III del Noroeste Entrerriano" 2. Status coded as suspended because source #1554469 indicates that the negotiation of the loan was stuck due to rise of loan financial value, and a new process that will cut the cost is going to take place in the future.

Number of official sources

4

Number of total sources

6