Javier Milei's government confirmed the restart of the Santa Cruz river hydroelectric complex works, halted since he took office. The project, funded by Chinese banks and executed by Gezhouba, aims to add energy to the electrical system and strengthen ties with China. Economy Minister Luis Caputo announced progress on the Cepernic dam, potentially completing in 2030.
The announcement of the Santa Cruz dams restart signals a shift in Argentina's energy policy. Economy Minister Luis “Toto” Caputo stated on his X account, “We agreed to restart the Santa Cruz dams works, which had been suspended for years due to contractual breaches. This decision regularizes conditions to resume construction of the Cepernic dam initially, which could finish in 2030 and contribute 1860 GWh to the Argentine Interconnected System, strengthening the national energy matrix. We fulfill our commitments and continue normalizing the energy sector.”
The project, named Cepernic after former governor Jorge Cepernic, with a second dam called Néstor Kirchner, is fully funded by Chinese institutions like the China Development Bank Corporation, the Industrial and Commercial Bank of China (ICBC), and the Bank of China. Started under Kirchnerism, it was halted by Mauricio Macri in 2015 over corruption suspicions and environmental impact, especially on the huet-huet bird's habitat. Renegotiated in 2016, it progressed with interruptions until December 2023, when Milei suspended it again.
During the halt, employment dropped from 3,500 to about 70 workers. By late 2024, Cepernic was 50% complete and the Kirchner dam 30%. Together, they could generate 10% of Argentina's electricity consumption. This reactivation strengthens the currency swap with China, averting IMF tensions, amid improving bilateral relations despite Milei's initial criticisms of Beijing's regime.
