Announcement in New York
The United States and Argentina launched the Andes-Atlantic Corridor on Wednesday, a joint initiative to modernize infrastructure connecting Argentine production of minerals, oil, and gas to Atlantic ports. The announcement, previewed by El Cronista on Monday, was made at the Consulate General and Promotion Center of Argentina in New York, on the sidelines of the United Nations General Assembly High-Level Week.[S1]
The presentation was led by Argentine Foreign Minister Pablo Quirno and US Under Secretary of State Christopher Landau. Also participating were EXIM Chief Commercial Officer Sarah Whitten, YPF President Horacio Marín, Economy Minister Luis Caputo, Ambassador Alec Oxenford, and Under Secretary Juan Pablo Segura.[S1]
An official fact sheet defines the corridor as the first in the Western Hemisphere under the G7 Partnership for Global Infrastructure and Investment (PGII). It joins the Lobito Corridor in sub-Saharan Africa, the Luzón Corridor in the Philippines, the India-Middle East-Europe Corridor, and the Trans-Caspian Trade Route.[S1]
Financing Details
The most concrete figure is a term sheet from the Export-Import Bank of the United States (EXIM) for up to $6 billion. It is a preliminary, non-binding document that sets general conditions but does not obligate either party to sign the loan. The fact sheet describes it as a non-binding term sheet, so the amount serves as a ceiling rather than a committed disbursement.[S1]
The term sheet is intended for Argentina LNG, an integrated liquefied natural gas project in Vaca Muerta led by YPF with Italy's ENI and the UAE's XRG. Its total investment is estimated at $51 billion. Separately, EXIM and Argentina signed the Build the Future Framework, which enables up to $7 billion through 2027 for infrastructure and productive capacity.[S1]
The funds are tied to purchases in the United States: the financing proposal seeks to support the acquisition of US goods and services for the project. One example is the contract with McDermott for the plant that will fractionate gas liquids and treat gas. Another is Pumpco, a subsidiary of US-based MasTec, which together with Bonatti and Contreras Hnos. won the export pipeline contract for more than $1 billion. That contract is subject to the project's final investment decision.[S1]
Projects in the Corridor
Almost all projects grouped under the corridor were already underway before the announcement. In transport, the Hidrovía waterway was awarded in June for 25 years to the Belgian-Argentine consortium Vía Navegable Troncal S.A., with an estimated investment of $10 billion.[S1]
In railways, Argentina launched 50-year tenders in August for the Belgrano, San Martín, and Urquiza freight lines. The aim is to lower the cost of transporting lithium and copper, and both governments presented those concessions at a roadshow in New York in March. For transport works, the statement opens the door for US companies to compete as bidders or subcontractors.[S1]
In electric power, there is the high-voltage transmission concession for the Buenos Aires Metropolitan Area (AMBA 1), estimated at $800 million and backed by a loan guarantee from the Inter-American Development Bank (IDB). It supplies Buenos Aires, which concentrates about 60% of national electricity demand.[S1]
