Chinese firms ramp up presence in Argentina's power sector

They account for 21.6% of the sector’s large-scale projects under construction.

The key role of a Chinese engineering firm in the sole consortium bidding on the Portezuelo del Viento project highlights the continued involvement of Chinese firms in Argentina’s power sector and in Argentina’s infrastructure sector more broadly, according to a note from Fitch Solutions.

In recent years, Chinese firms have taken an increasingly significant role in Argentina’s power sector, with involvement in most of the largest projects undertaken. According to data from Fitch’s database, Chinese firms account for 21.6% of construction roles on large-scale power projects ($50m and above) in planning or under construction in the market.

The Portezuelo del Viento tender could mean that Chinese firms will remain highly active in the market over the next several years. With their higher risk tolerance and strong backing from banks and the government, Chinese firms are expected to pose strong competition for other international firms active in the country’s power market.

“This strong involvement will be built on a growing presence and familiarity with the market evidenced by the projects already being developed by Chinese firms in the country, as well as a strong relationship between the governments of Argentina and China which should facilitate continued involvement,” the report stated.

Some more of these projects include the 75MW El Tambolar hydropower project awarded in 2019, as well as the the 315MW Cauchari I, II and III solar projects in Jujuy and the 355MW Lomo Blanca I, II, III and IV and Miramar wind power projects in Chubut.