Argentina water infrastructure funds face low execution amid flooding

A report by the Center for Political Economy of Argentina (CEPA) reveals that the Water Infrastructure Trust Fund (FFIH) is failing to execute critical projects despite extreme weather events like 'Super Niño' causing river overflows and evacuations.

Of the 24 projects initiated through the FFIH, 15 have been canceled or suspended, including 13 with rescinded agreements. Only one project is officially recorded as completed. Of the eight projects currently in progress, none have exceeded a 36% physical execution rate.

The fund, which is financed by 4.31% of fuel taxes, has seen a significant portion of its capital diverted. According to CEPA, 85.5% of the fund's money has been placed in Treasury bills. The report notes that under the administration of Javier Milei, only 23 out of every 100 pesos received have been converted into actual works, with the remainder effectively financing the State.

Paralyzed works represent contracts totaling approximately 144,818 million pesos, or 39.7% of the total analyzed portfolio. Seven of these stalled projects are located in the Buenos Aires metropolitan area, a region historically vulnerable to flooding.