Since taking office in December last year, Argentina's new president Macri issued a series of reform measures, which improve infrastructure has become the most important. In September 26th, Argentina's transport minister Karl gayer Mo Dieteliqi in Beijing investment promotion conference announced that the next four years (2016-2019) in the field of infrastructure investment of more than $33 billion.
Reporters at the scene according to the information received, in which $33 billion, $12 billion 500 million for the new road, $4 billion 400 million for the expansion of railway network, $1 billion 500 million for the Buenos Aires port container terminal modernization, $1 billion 200 million for the construction of the airport, $10 billion 300 million for the metropolitan area of passenger railway construction.
"Our infrastructure improvement program is an inspiration from China." Dieteliqi said. He visited Shanghai, Nanjing and Beijing two years ago, and was impressed by China's high-speed railway, port and highway. He believes that China's most important development experience in the past 20 years is to build infrastructure to enhance transport capacity, to inject vitality into the economic development.
For Argentina, $33 billion of funding needs is not a small number of. Dieteliqi pointed out that direct financing, funds will be mainly from the international financing institutions of private financing and PPP financing and the Ministry of finance of Argentina.
In China's economic and trade cooperation in Latin America and the situation, China is the natural nature of Argentina to seek investment partners. Ambassador of Argentina Gaitiege said, since this year, Ma and President Kerrey has Chinese President Xi Jinping two meeting, and plans next year in April official visit to china. In addition, Argentina mining minister, Minister of transport, Minister of agriculture, energy minister will visit China this year.
"In recent months, China and Argentina have reached a number of financing agreements, a total of 25 billion u.." Gaitiege said. The money will be invested into Argentina infrastructure projects, including two new hydroelectric power plants, two nuclear reactors and 1 solar power base, renovation of 1 old railway freight line, and repair pipelines and aqueducts and road engineering.
"There is no doubt that I am very much trust in the infrastructure construction experience of Chinese companies, welcome them to Argentina to participate in our transportation improvement program." Dieteliqi said. He stressed that the Chinese enterprises in the construction of the railway, and now is the best time to invest in Argentina, Argentina plans to double the capacity of railway freight.
Infrastructure weakness is equivalent to the level of China's 20 years ago
"Argentina's current infrastructure is equivalent to the level of China's 20 years ago." Dieteliqi said. At present, Argentina 40% of the state's poor, 90% of the freight rely on the road, only 5% of the freight rely on the railway, and the average speed of only 15 kilometers per hour.
On the sea side, although there are many famous port in Argentina, but can not undertake large cargo ship, and can not easily access the surrounding roads and railways. In terms of air transport, Argentina, only 9 million per year. In urban traffic, only 12 million people use public transport, accounting for only 20%.
World Economic Forum "2015-2016 Global Competitiveness Report" shows that in terms of infrastructure quality, Argentina ranked 144 in the eighty-seventh economies in the past ten years, almost no improvement.
Argentina ambassador Gaitiege told reporters that Argentina has been hoping to attract foreign investment to improve the infrastructure. In the past, due to Argentina's political and economic environment is not stable, foreign investment enthusiasm is not high, but now, the new government has created a good investment environment.
Macri came to power after the promulgation of a series of economic reform measures: the abolition of capital controls and restrictions on imports, reduction of agricultural products (000061, shares) export tariffs, the implementation of "managed floating exchange rate system, reducing the public service subsidies, improve the utility price. Argentina's new government also negotiated and issue bonds to pay off the debts of the former government, which is the first time in 15 years to get rid of the debt default in Argentina.
Although reform measures are being recognized by investors, but IMF is expected, Argentina's GDP this year will be reduced by 1.5%, but next year will grow by 2.8%. Argentina's interior minister, Frigerio, said in June this year, to achieve an average annual 4%-5% growth target of infrastructure investment must reach 5% of GDP.
Push PPP mode to provide the lowest income guarantee
For investors to show, the Argentina government has drafted a draft PPP. The bill has been passed in the house of Commons, and is expected to be submitted to the house of Lords in late October or early November. This is one of the most important reform initiatives in Argentina, in order to let the government and private sector risk sharing and leveraging more social capital into the field of infrastructure.
In PPP mode, the Chinese investors will not only assume the project construction, but also need to be responsible for the long-term operation and maintenance of the project, compared with the project contracting risk is higher. In the promotion site, many of the "national prefix" Chinese enterprises of Argentina to provide "big cake" is full of interest, but some people worry that the investment in infrastructure projects in the downturn in the economic situation of the business risk.
Then, the Argentina government on the PPP project provides a minimum income guarantee? Dieteliqi replied that there have been such security arrangements, and so with China signed a lot of financing agreement. However, he did not specifically introduce this guarantee arrangements.
As to whether the relaxation of foreign technical personnel to enter the limit, Dieteliqi replied, has now been canceled restrictions, and is pushing China visa facilitation measures. At present,
