The millionaire expansion of Yacyretá: consortia, companies and controversies at the origin of the main public works of 2019

The call for tenders for major public works that will be developed in the country during this year is nearing completion. This is the expansion of the hydroelectric company Yacyretá, shared by Argentina and Paraguay on the flow of the Paraná River, and it covers nearly 50% of the electricity needs of Argentine households.

As the definitions of the companies that take over the technical and civil engineering work appear, there is pressure and controversy. Argentina Impsa, one of the bidders, is fighting with the German company Voith Hydro for the tender.

The work will require an investment of 500 million USD., which are divided into about USD 100 million for the supply of three huge turbines – 250 tons and 9 meters in diameter each – and the rest for the construction of civil works, which will be financed by the equity of the national entity Yacyretá. (EBY).

The first stage of the tender included the supply of electromechanical equipment for the hydroelectric use of the Aña Cuá arm: three huge turbines that will increase the average annual production by 9% in the hydroelectric plant.

The prequalified consortia at this technical stage were: the Argentine Impsa in badociation with CIE and Power China, which proposed 116 million USD, and the German Voith Hydro with $ 99 million. According to the estimates of the binational entity Yacyretá (EBY), the supply is expected to be around 170 million USD. The German company has an advantage, which has submitted a proposal 41% lower than expected.

But since Impsa says that when badyzing both offers, that already is testing the turbines, take into account a discounted value of Argentina's proposal, as its total includes a high percentage of costs in pesos which, when taking the value of the current dollar, close to $ 40, is reduced.

"This is the biggest infrastructure project this year and we are coming to 2018 when, in reality, there were no major projects," he explained. Infobae Juan Carlos Fernández, CEO of Impsa. "We have the most competitive offer, the prices presented are from April 2018, this is not the price for the moment. Our proposal has 63% in pesos and Guaranías. And we manufacture 70% in Argentina and Paraguaywhere they will pay us in pesos. Do not convert in pesos to 20 USD as in April 2018, but to 40 USD. You apply the exchange rate and simply with that we are cheaper, "said the director.

In addition, Fernández emphasized a 10% advantage corresponding to local content. They estimate that, unlike the German society, they will employ more than 3,000 Argentines. "We do not talk about subsidies. Our industry needs the support of the government, but not in money, but in political support, as Europeans, Americans or Chinese do with their businesses. Our price is not USD 116 million, because we did not take the exchange rate and inflation variables, nor the 10% of the local component, nor the advantage of the extra energy generated by our turbines ", he added.

"Today, the industry is destroyed, Impsa survived thanks to the projects we have carried out abroad. There are 80 SMEs in Mendoza that have been working with us for decades and no longer exist. You have to make the right comparisons and keep in mind that the work goes to Argentineans and Paraguayans or Germans, "he warned.

Impsa is the result of a long process of restructuring that ended last year. Today, 65% of Impsa shares correspond to a trust controlled by creditors: Banco Nación Argentina, BICE, Inter-American Development Bank (IDB), among other banks. The Pescarmona family – founder of the company – has kept 35%. Enrique Pescarmona, one of the entrepreneurs involved in the cause of the notebooks, has left his position as CEO.

Fernandez, who now holds this position, saves the "absolute" transparency"who had the process of calling offers in progress.

Impsa won the prize for one of the public works paralyzed by the economic crisis: the hydroelectric dam Portezuelo del Viento in Mendoza. "When projects fall, we look for alternatives. Last year, we worked for a hydroelectric plant in Brazil and another in Malaysia. We are a company that, over the last 20 years, out of 180 projects, exports 150 ", said Fernandez.

Infobae tried to contact Voith Hydro but did not get an answer.

Civil engineering, the second stage

To carry out civil works, for which the estimated budget is about 400 million USD, five already pre-qualified consortia out of the eight presented. The Executive Director of the Entidad Binacional Yacyretá (EBY), Martín Goerling, announced that the economic offers would be opened on March 11th.

The pre-qualified candidates are Salini Impregilo SpA-José Chediack and ITASASA-ATE; Techint, Benito Roggio e Hijos, Panedile Argentina and Benito Roggio e Hijos (Paraguay); José Cartellone Construcciones Civiles, Construction works J. Malucelli, Talavera Ortellado; SACDE Argentine Company of Construction and Strategic Development, Power China Limited, CDD Construcciones; and the ATE integrated by Astaldi, Rovela and Tecnoedil.