Since 2023 , Argentina has been suffering from the paralysis of one of its most ambitious renewable energy projects , the construction of the Néstor Kirchner and Jorge Cepernic hydroelectric dams in the province of Santa Cruz .
Not only does it symbolize a stagnation in the progress towards a more sustainable energy matrix , but it also puts thousands of jobs at risk and affects trade relations with China .
The dams , designed to generate 5,093 GWh of clean energy annually , were started in 2015 thanks to an agreement between ENARSA , the Argentine state-owned company, and the Unión Transitoria de Empresas (UTE) headed by the Chinese company Gezhouba .
With a total investment estimated at 5 billion dollars , the project aimed not only to enrich the national energy supply , but also to increase the energy autonomy of the region.
However, the progress of the work , which had reached 42% in the Cepernic dam and 20% in the Kirchner before being stopped, has been frustrated by the lack of state investment since the beginning of 2023 .
The situation becomes more complex given the context of the Javier Milei administration , whose approach has been the application of a " chainsaw " of dramatic cuts in search of fiscal balance .
Although Gezhouba had offered significant financing , including a contribution of 480 million dollars in 2022 and the promise of injecting another 500 million in 2023 , the new government's policy of reducing public spending has imposed an insurmountable obstacle to the continuity of the project . Thus, the Chinese company has announced the dismissal of nearly 1,800 workers linked to the construction , leaving only a minimal endowment to preserve the works.
The affected workers are in a situation of uncertainty , which raises concerns in local communities that depend on these sources of employment .
In diplomatic terms, the decision to stop the works could affect Argentina's relationship with China , a key partner in various areas of investment and trade .
Although presidential spokesman Manuel Adorni has played down these effects, the discontent of an economic giant like China should not be underestimated.
The government 's claims to preserve the bilateral relationship are at odds with the reality of the facts: a project that was seen as emblematic for the country's energy future is faltering due to a lack of government support .
The promise of a “ new viable project execution program ” developed by the parties will depend largely on the political will of the current government . The lack of investment and the decision to wait for the economic situation to change raise serious doubts about Argentina’s ability to move towards a renewable energy matrix .
At a time when the world is looking for sustainable alternatives , Argentina seems to be missing an invaluable opportunity to take advantage of its renewable water resources .
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THE DAILY 24