The Andes-Atlantic Corridor plan, a bilateral project aiming at investing up to US$7 billion in 2027 to enhance key infrastructure, was announced by Argentina and the United States on Wednesday. The agreement was executed in New York by Foreign Minister Pablo Quirno and U.S. Deputy Secretary of State Christopher Landau. The agreement centers on energy, mining, transport, and telecommunications initiatives, intending to enhance connectivity between Argentina’s primary productive hubs in the Andes and Atlantic ports, facilitating the shipment of goods to Western markets. Of the US$7 billion in financing, US$6 billion will be allocated to Argentina LNG, the Vaca Muerta gas export initiative led by Argentina’s majority state-owned energy firm, YPF, in collaboration with the Italian multinational energy corporation ENI and the Abu Dhabi state-owned oil entity XRG.
In August, YPF submitted a request to categorise the project under the nation’s Large Investment Incentive Regime (RIGI, by its Spanish initials), which is a specialised framework providing investors with various fiscal and foreign exchange advantages. The remaining funds will be allocated to initiatives related to critical minerals, transportation, and telecommunications. The agreement establishes financial mechanisms aimed at incentivising U.S. companies to engage in infrastructure projects within Argentina. Financing will utilise instruments offered by EXIM, the Export-Import Bank of the United States, and the DFC, the U.S. International Development Finance Corporation. It will also mobilise U.S. private capital via direct loans, credit guarantees, and insurance, alongside technology, machinery, and services pertinent to energy development.
Argentina has pledged to further enhance its legal and regulatory framework for investments while establishing predictable rules for infrastructure concessions, with RIGI serving as a key mechanism for drawing capital to mega-projects. The project envisions investments in pipelines, transport, power generation and transmission, along with other initiatives aimed at alleviating bottlenecks that constrain the growth of energy exports. The agreement also seeks to pinpoint priority projects for the rehabilitation and expansion of railroads, waterways, and ports. Key areas for development encompass the Paraná-Paraguay waterway system and rail lines earmarked for privatisation, including Belgrano Cargas.
A rail link connecting the shale oil and gas field Vaca Muerta to the port of Bahía Blanca is currently under evaluation. Additional focal points encompass development initiatives centred on the extraction and processing of essential minerals, including lithium and copper; projects related to electricity generation and transmission; the expansion of telecommunications; the establishment of fiber-optic networks and submarine cables; efforts involving the state satellite company Arsat; and the implementation of technologies recognised as dependable for strategic infrastructure.
