The millionaire transfers that Neuquén made to finish Nahueve

The Nahueve multipurpose projectwhich is in the final stretch of its work, had a complex behind the scenes in terms of its financing that forced Neuquén to make millionaire transferss to finish it. Despite having a foreign loan of 15 million dollars assigned, funds “proved insufficient” by the national macroeconomic crisis.

Given this obstacle, on March 9, through Decree 377/2023, the province granted additional funds for a figure greater than 3,734 million pesos to the Neuquén Investment Agency (ADI-NQN), in charge of the project. They were added to another 1,100 million pesos that were transferred to him in November of last year.

“As a consequence of the particular macroeconomic conditions in Argentina, both the funds assigned by the Abu Dhabi Development Fund (ADFD) and those assigned by Neuquén, are insufficient for the execution of the Nauheve multipurpose project”, says the decree.

The Arab fund granted a loan to Neuquén of 15 million dollars, intended to finance the dam, which was authorized through Provincial Law 2950/2015. In the same regulations it was established that the province would be responsible for the additional funds necessary to finish the work.

In May 2017 the province committed disbursements for a figure greater than 6.5 million dollarsbringing the total cost of the work to just over $21.5 million.

“When we started the project, the difference between the real dollar and the official it was up to fifteen percent. Today the difference is double”, argued the president of the ADI-NQN, José Brillo, in dialogue with RÍO NEGRO.

The main problem is that the Arab funds started in dollars from New York, arrived at the Nación bank and from there to the Neuquén coffers, but in pesos converted to the official one.

For the importation of the turbines that were manufactured in Austria, and to mitigate the currency disparity, the Government agreed to a direct transfer in dollars between the ADFD and the manufacturer WWS Wasserkraft GmbH. However, payment for materials such as cement, wire, and iron was made in pesos converted to the official.

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The details of the transfers

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In November of last year, and through Decree 1924/2022, the province granted funds for more than 1,100 million pesos to the ADI-NQN, to advance with the construction of the work. However, once again they were insufficient and a remainder of almost 951,000 pesos remained.

To top it off, the five-year grace period that was attached to the project has already expired and Neuquén made five payments of $500,000 to the ADFD.

Taking into account the increase in costs related to the work due to the devaluation of the local currency, and that the repayment of the loan has already begun, is that on March 9 a new transfer to the ADI-NQN of $3,734,510,667 was authorized.

“With this last item we are going to finance the project until its start-up,” confirmed Brillo.

The companies involved in the work are seven: the Hidronor Ingeniería y Servicios – HCA Consultora consortium carried out the executive project; the UTE Rovella Carranza – IME were in charge of the construction of the civil works; Latinoconsult – Intertechne of inspection; and, finally, WWS is the one who provided the generation equipment.