The Milei government has reactivated the construction of the Santa Cruz dams that had been stalled since 2023

However, contractual breaches, the lack of price updates, and differences between the parties caused successive delays that led to the halt of the work.

So far, approximately USD 1.8 billion has been executed between both dams, while completing the complex would require another USD 4 billion in investment.

The priority will be the Jorge Cepernic dam, previously known as La Barrancosa, which has a 46% progress. The plant will have three turbines and an installed capacity of 360 megawatts (MW), with an estimated generation of 1,860 GWh for the Argentine Interconnection System (SADI). Its completion is scheduled for 2030.

Once that phase progresses, the construction of Cóndor Cliff will continue, which constitutes the second plant of the complex and the largest.

The reactivation will allow for the recovery of an energy project that had been stalled for years and now has financing and an execution scheme agreed upon between the national government, the construction company, and provincial authorities.

The Government of Javier Milei has reactivated the works on the hydroelectric dams in Santa Cruz, a project that was supposed to be completed in 2023 but was halted after accumulating delays and contractual conflicts during previous administrations.

After reaching a new understanding with the Chinese company Gezhouba, the libertarian administration released part of the funding that had been withheld and made an initial payment of $45 billion to resume the work.

One of the main objectives of this new phase will be to regain the pace of execution and generate employment in the province.

As planned, the hydroelectric complex could create up to 4,000 jobs, of which 1,800 would be direct. Additionally, a mechanism has been established to prioritize the hiring of local workers and suppliers.

In this regard, the agreement includes the application of the 90/10 scheme, which stipulates that 90% of the workforce must be from the province. Workers will need to prove their effective residence in Santa Cruz and be registered in the Local Employment Registration System (SIREL). There will also be an effort to favor local companies dedicated to supplying materials and providing services.

The agreement that allowed the works to be unlocked

One of the central points for recovering the project was the signing of Addendum 12 between Energía Argentina (ENARSA) and Gezhouba. The understanding allowed for the resolution of contractual disputes that had been ongoing since 2016 and had generated accumulated claims of over USD 700 million, mainly due to the lack of price adjustments.

After resolving those differences, the Milei government released funds from the credit granted by Chinese banks, including ICBC, Bank of China, and CDB, which had been withheld in a state account. Subsequently, the first $45 billion was transferred to the construction consortium.

When will the Santa Cruz dams be completed

The hydroelectric plants were tendered in 2013 during the second government of Cristina Fernández de Kirchner and were scheduled for completion in 2023.