Argentina Infrastructure Report Q3 2008

In May 2008, the public works secretary was quoted as saying that the Argentine government expected to double investment in infrastructure over the next four years to US$25bn. The public works department has invested US$12.5bn in social and productive infrastructure over the past four years. Improvements to road, housing and sanitation infrastructure comprise over 80% of the investment.

Argentina is seeing a great deal of investment in its infrastructure. Increasing productivity of harvests and growing methods are straining existing port facilities. Upgrades in infrastructure will enable ports to handle the greater demand. Repairs to existing transport structures will allow larger ships to take advantage of port facilities. In addition, planned upgrades in pipelines and power transmission networks will reduce Argentina's dependence on foreign energy imports.

Major projects and investments have been announced across the infrastructure segments. In April 2008, the Argentine planning minister announced the signing of a US$3.93bn loan by the French bank Natixis to finance a high speed rail network. In June 2008, government officials began accepting offers to supply parts for the planned Comahue-Cuyo transmission line. In April 2008, the presidential press office reported that two firms submitted offers to build the La Barrancosa and Cndor Cliff hydro plants in Argentina's Patagonia province.

BMI forecasts the construction industry to grow at an annual average of 6.8% over the period 2008-2012.

This can be viewed as representing a stabilisation, or consolidation, of the construction industry. Past years have seen surging growth in construction on the back of a strong rebound from the recession and economic crisis of earlier this decade (construction growth rates had reached above 30% year-on-year (yo- y) in 2005 and 2006). Significant factors continue to offer support to the industry, not least strong government investment.