Argentina - Design & ConstructionArgentina - Design & Construction
The Government of Argentina has made investment in Argentina’s aging infrastructure a priority. The new Public Private Partnership scheme is ambitious and has attracted the re-engagement of OPIC (the U.S. Government’s Overseas Private Investment Corporation) in Argentina. Over $55 billion worth of PPP projects in infrastructure were planned in the period 2017-2025, although the Argentine government suspended the program in December 2018. The Inter-American Development Bank ($4.65B) and World Bank ($3.3B) have already committed funding for new roads, rail, ports and utilities. OPIC and ExIm Bank could play a role in business transactions where there is a US component. For updated information on Exim Financing available for Argentina, refer to https://www.exim.gov/tools-for-exporters/country-limitation-schedule.
The Government of Argentina (GOA) is focused on the overall development of Argentina’s infrastructure, to include airports, electric power transmission, ICT, highways, hospitals, natural gas networks, ports, prisons, railway, and water and wastewater networks. However, given Argentina’s current high country risk, most PPP projects have been placed on hold, with the exception of six toll roads. A summary of best prospect areas in which US companies can be competitive follows.
Summary of Best Prospects
Highways
Forty percent of Argentina’s road network is in poor condition, while 95% of total freight is transported by truck. As the GOA’s railway infrastructure plan unfolds, most of the cargo will eventually shift mode of transportation, to train. The GOA seeks to re-pave approximately 4,000 miles of existing roads and expand national highways by approximately 1,000 miles. Most of this expansion will be executed under PPPs. However, as previously mentioned, toll roads continue to move forward, but with some delay. Planned investment for this sector accounts for US$48 billion, during the 2017-2028 timeframe.
Water Supply and Waste Water Treatment
Approximately 13% of Argentina’s urban population lacks access to potable water, and 42% of the population does not have access to sewage systems. The GOA plans to increase sewer penetration up to 75% and drinking water access to 100% during the 2016-2022 timeframe. To that end, planned investments total US$22 billion.
Railways
Five percent of Argentina’s freight is transported by train at an average speed of 9 mph. The GOA plans to revamp three major rail-freight networks and expand three regional express passenger lines. In addition to the revamps, the government is likely to issue future tenders pertaining to Rolling Stock and Urban Trains. Rail projects will also entail the implementation of new automatic signaling systems and more train viaducts. Planned investment for this sector totals US$14.2 billion, during the 2016-2025 timeframe.
ICT
ICT is a critical infrastructure element, which cuts across almost every industry of the economy. Thus, several GOA objectives include the improvement and expansion of the existing national telecommunications and internet service network, as well as cellular telephony and broadband coverage. Currently, one of every three Argentine citizens lacks adequate internet access. The GOA plans to dramatically reduce the gap within the next two years. To that end, the Secretariat of Modernization is spearheading a nationwide program to reduce, and potentially eliminate, the current digital gap. Planned investment for this sector totals approximately US$5 billion, during the 2017-2022 timeframe.
Airports
Most of Argentina’s airports lacked infrastructure upgrades for almost three decades. Thus, there is a need for new runways, control towers, passenger terminals, equipment, and updated Instrumental Landing Systems (ILS). The GOA’s plan to upgrade the country’s air-transport infrastructure is focused on 19 airports. The Ministry of Transportation aims to double the number of passengers on domestic flights. Furthermore, the plan pursues an increase in commercial capacity at smaller airports in Argentina’s interior provinces to benefit regional economy exports. Planned investment for this sector totals US$1.47 billion, during the 2017-2025 timeframe.
Ports
Most ports in Argentina lack adequate access to highways and competitive logistics infrastructure. Further, current container handling capacity is restrictive due to the lack of port infrastructure development. The GOA has an ambitious plan to increase container capacity for the Port of Buenos Aires, from 80,000 to 1.2 million containers per annum, and upgrade port canal depth, to host Post-Panamax, Neo-Panamax and Sanmax vessels. Planned investment for this sector totals US$2 billion, during the 2016-2019 timeframe.
Web Resources
Ministry of Transport (Spanish)
Government of Argentina - Aerial (Spanish)
Government of Argentina – Trains (Spanish)
Government of Argentina – Vial (Spanish)
Government of Argentina – Ports (Spanish)
Government of Argentina - Tenders (Spanish)
Infrastructure Project – Subways (Spanish)
Infrastructure Project – Linea Roca (Spanish)
Infrastructure Projects – Train Extensions (Spanish)
Infrastructure Projects – Train Viaducts (Spanish)
Infrastructure Projects - Roadways (Spanish)
Aeropuertos Argentina 2000 (Spanish)
Aeropuertos Argentina 2000 – Tenders (Spanish)
For additional information on these industries, including market analysis, trade events, contacts, and the products and services that the U.S. Commercial Service can provide to help you succeed in the Argentine market, please contact an Industry Specialist.
Prepared by the International Trade Administration. With its network of more than 100 offices across the United States and in more than 75 markets, the International Trade Administration of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.
The Government of Argentina (GOA) is focused on the overall development of Argentina’s infrastructure, to include airports, electric power transmission, ICT, highways, hospitals, natural gas networks, ports, prisons, railway, and water and wastewater networks. However, given Argentina’s current high country risk, most PPP projects have been placed on hold, with the exception of six toll roads. A summary of best prospect areas in which US companies can be competitive follows.
Summary of Best Prospects
Highways
Forty percent of Argentina’s road network is in poor condition, while 95% of total freight is transported by truck. As the GOA’s railway infrastructure plan unfolds, most of the cargo will eventually shift mode of transportation, to train. The GOA seeks to re-pave approximately 4,000 miles of existing roads and expand national highways by approximately 1,000 miles. Most of this expansion will be executed under PPPs. However, as previously mentioned, toll roads continue to move forward, but with some delay. Planned investment for this sector accounts for US$48 billion, during the 2017-2028 timeframe.
Water Supply and Waste Water Treatment
Approximately 13% of Argentina’s urban population lacks access to potable water, and 42% of the population does not have access to sewage systems. The GOA plans to increase sewer penetration up to 75% and drinking water access to 100% during the 2016-2022 timeframe. To that end, planned investments total US$22 billion.
Railways
Five percent of Argentina’s freight is transported by train at an average speed of 9 mph. The GOA plans to revamp three major rail-freight networks and expand three regional express passenger lines. In addition to the revamps, the government is likely to issue future tenders pertaining to Rolling Stock and Urban Trains. Rail projects will also entail the implementation of new automatic signaling systems and more train viaducts. Planned investment for this sector totals US$14.2 billion, during the 2016-2025 timeframe.
ICT
ICT is a critical infrastructure element, which cuts across almost every industry of the economy. Thus, several GOA objectives include the improvement and expansion of the existing national telecommunications and internet service network, as well as cellular telephony and broadband coverage. Currently, one of every three Argentine citizens lacks adequate internet access. The GOA plans to dramatically reduce the gap within the next two years. To that end, the Secretariat of Modernization is spearheading a nationwide program to reduce, and potentially eliminate, the current digital gap. Planned investment for this sector totals approximately US$5 billion, during the 2017-2022 timeframe.
Airports
Most of Argentina’s airports lacked infrastructure upgrades for almost three decades. Thus, there is a need for new runways, control towers, passenger terminals, equipment, and updated Instrumental Landing Systems (ILS). The GOA’s plan to upgrade the country’s air-transport infrastructure is focused on 19 airports. The Ministry of Transportation aims to double the number of passengers on domestic flights. Furthermore, the plan pursues an increase in commercial capacity at smaller airports in Argentina’s interior provinces to benefit regional economy exports. Planned investment for this sector totals US$1.47 billion, during the 2017-2025 timeframe.
Ports
Most ports in Argentina lack adequate access to highways and competitive logistics infrastructure. Further, current container handling capacity is restrictive due to the lack of port infrastructure development. The GOA has an ambitious plan to increase container capacity for the Port of Buenos Aires, from 80,000 to 1.2 million containers per annum, and upgrade port canal depth, to host Post-Panamax, Neo-Panamax and Sanmax vessels. Planned investment for this sector totals US$2 billion, during the 2016-2019 timeframe.
Web Resources
Ministry of Transport (Spanish)
Government of Argentina - Aerial (Spanish)
Government of Argentina – Trains (Spanish)
Government of Argentina – Vial (Spanish)
Government of Argentina – Ports (Spanish)
Government of Argentina - Tenders (Spanish)
Infrastructure Project – Subways (Spanish)
Infrastructure Project – Linea Roca (Spanish)
Infrastructure Projects – Train Extensions (Spanish)
Infrastructure Projects – Train Viaducts (Spanish)
Infrastructure Projects - Roadways (Spanish)
Aeropuertos Argentina 2000 (Spanish)
Aeropuertos Argentina 2000 – Tenders (Spanish)
For additional information on these industries, including market analysis, trade events, contacts, and the products and services that the U.S. Commercial Service can provide to help you succeed in the Argentine market, please contact an Industry Specialist.
Prepared by the International Trade Administration. With its network of more than 100 offices across the United States and in more than 75 markets, the International Trade Administration of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.