Chinese government entities pledge financing for Arauco Wind Farm expansion project

Chinese government entities pledge financing for Arauco Wind Farm expansion project In December 2021, the Government of Argentina included the Cerro Arauco Wind Farm expansion project on its list of 17 priority projects sent to the China National Development and Reform Commission (NDRC) to request financing.

Then, also in December 2021, PowerChina signaled an intent to finance an expansion of the Arauco Wind Farm in Arauco, La Rioja Province, Argentina.

It is unclear if the debt financing would also come from PowerChina or another source.

December 2021 reports also indicated that the financing from PowerChina would not be occur until after a state visit by Argentine President Alberto Fernández on February 4, 2022.

Then, on January 27, 2022, the Fifth Strategic Dialogue for Economic Cooperation and Coordination (DECCE) was held between the Argentine Foreign Minister and Chinese officials.

Then, on February 6, 2022, a Memorandum of Understanding (MoU) about Cooperation under the Belt and Road and the Maritime Silk Road was signed by Argentine President Alberto Fernández.

The MoU would permit the Argentine government to sign agreements that guarantee financing for various infrastructure projects, but it itself did not commit or pledge financing to any specific project.

Of these, 10 infrastructure projects worth a combined 14 billion USD had already been approved via the DECCE in January 2022, though no evidence indicates these funds were formally committed.

The Argentine Foreign Minister indicated later that these ten approved projects included the Arauco Wind Farm expansion project. None of these documents appear to rise to the level of an official commitment of debt financing for the wind farm.

Then, in February and March 2022 respectively, Governor of Rioja, Ricardo Quintela, and Ariel Parmigiani, president of the Arauco Wind Farm, indicated the company would receive a loan in ARS worth USD $150 million for the expansion. However, no evidence that a loan was actually signed has been identified.