The Argentinean government is preparing a public investment stimulus focused on financing public works, innovation and development projects to revive the local economy. This investment plan will include a USD 150 million budget for construction and works on 30 roads in 16 Argentinean provinces.

In 2020, and so far in 2021, the National Government has been making announcements related to Public Works as an engine that will reactivate the economy and help overcome the dire effects of the very long quarantine.

In this context, road works will play a relevant role, although until now it seems that the focus has been more on works related to the construction of houses. However, the construction and improvement of highways and routes is an absolute priority to reactivate the regional economies and at least maintain the historic low level of Argentine foreign trade. It should not be forgotten that the distances in Argentina are enormous and that there is practically no transportation system that competes with the road network and the use of trucks.

A transportation consultant confirmed, "Argentina needs to increase exports. The only way to achieve this is by having the associated infrastructure to meets those expectations. With the current state of the roads, you will always be late and expensive. In Argentina there is very little railway development so the regions depend 100% on trucks, and consequently on the state of the roads."

"In Argentina there is very little railway development so the regions depend 100% on trucks, and consequently on the state of the roads."

Transportation consultant, Argentina

There are works strategically distributed throughout the country, although this distribution is more designed in electoral terms than in terms of a plan that fosters regional economies and promotes an increase in exports.

An infrastructure consultant in Argentina was unsure what new impact will actually be made, "This government has talked about public works from its beginning but most of the activity has been on works that were started under the previous administration. The government has no yet started any major new public works."

"This government has talked about public works from its beginning but most of the activity has been on works that were started under the previous administration."

Transport consultant, Argentina

Another doubt has been raised about how the proposed works are going to be financed. Although the approved budget is very generous in terms of capital investment for public works, it is not entirely clear where the funds will come from, considering the doubts that exist regarding the closing of an agreement with the International Monetary Fund (IMF), and also whether it will include a contribution of new funds. 

Also, there is a risk of corruption and how the works will be managed. Although the government created an Observatory that allows open control of the progress of the works and the destination of the funds, it will be necessary to see in practice what impact it has in terms of transparency. Everything indicates that the sophistication with which acts of corruption can be carried out can hardly be captured and evidenced by this Observatory.

The consultant in Argentina commented, "The risks of corruption, in the case of Argentina, and of Public Works, are enormous. The government anticipated launching a Public Works Observatory, through which the general population can monitor the progress of work and payments. But we all know that in Argentina the ingenuity to make payments behind the scenes is infinite."