Argentine Governors Urge Milei to Boost Infrastructure for Resource Sectors

Governors from Argentina's key mining and oil-producing provinces have called on President Javier Milei to prioritize public investment in infrastructure, arguing it is essential for economic growth. Leaders from Neuquén, Chubut, Jujuy, and Salta emphasized that without significant infrastructure development, the ambitious production targets for 2030 cannot be met, which would benefit the entire nation. The plea comes as the state has reduced its role in maintaining critical infrastructure since December 2023.

The governors pointed to the deteriorating condition of roads in productive regions, which are heavily impacted by the constant traffic of heavy-duty trucks transporting goods and raw materials. They noted that the limited repairs undertaken by the executive branch are insufficient to address the widespread decay. This infrastructure deficit particularly affects areas like Vaca Muerta, a major unconventional hydrocarbon formation in Patagonia, and the lithium-rich provinces of Jujuy and Salta, where global companies are making substantial investments.

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Without development of infrastructure, we are not going to achieve the level of production we want to achieve by 2030, and it will be very good for all of Argentina.

Rolando Figueroa, governor of Neuquén, also voiced concerns about the distribution of revenue generated from resource extraction. He highlighted that his province receives only 13% of the revenue from a barrel of oil, while the national government takes 17% and other provinces receive 10%. Neuquén, however, must use its small share to fund social sustainability, making it difficult to manage the influx of people seeking opportunities in the region. Figueroa is preparing for a "post Vaca Muerta" era by planning future investments in schools and sanitation projects.

Ignacio Torres, governor of Chubut, echoed Figueroa's sentiments, stressing the need for collaboration between provincial governments, the national administration, and energy sector unions. He described the situation as "inconceivable" that communities still lack basic services like gas and water, and that essential routes remain in disrepair. The governors' collective message underscores a critical need for infrastructure investment to unlock the full economic potential of Argentina's natural resources.

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It is inconceivable that we have towns without gas, without water, unable to maintain the routes.