In a coming and going of contradictory versions by the government of Tierra del Fuego, this Thursday took parliamentary status in the Legislature of the province an agreement with a Chinese state company whose content had already been generating controversy since the year. The memorandum, which is now known, includes the construction of a port and a power plant plus large-scale production of chemicals.
The governor of the province Gustavo Melella asked provincial legislators to ratify the memorandum of understanding he signed with China in October last year through a decree in which he disclosed all the details of the controversial memorandum.
The document states that the company Shaanxi Chemical Group will invest US $ 1,250 million in the province for the construction of an industrial plant with an annual capacity of 600,000 tons of synthetic ammonia, 900,000 tons of urea and 100,000 tons of glyphosate.
This will involve the construction of a multipurpose port terminal with an internal enclosure, for the mooring of 20,000 ton vessels, that is, a Chinese port in Argentina, and a 100MW power plant.
The incredible thing about all this is that on the one hand, Melella sent the project of ratification of his project to the provincial Legislature whenSergio Massa, with deputies Máximo Kirchner and Cecilia Moreau were traveling in China. And on the other hand, it is one of the projects that the United States objects most to in terms of Chinese progress in Latin America and Argentina in key logistics and infrastructure projects.
Copy of the request made by the governor of Tierra del Fuego for the provincial Legislature to approve a controversial agreement with China for a company from that country to build a chemical plant, a port terminal and a power plant
For that matter, Melella, a radical ally of Kirchnerism and recently re-elected, spoke about it with Ambassador Marc Stanley when he visited the province last January.
In the environment of the Minister of Economy, Sergio Massa, they said that he was going to call Melella this afternoon to know what he is looking for with the request for ratification of the memorandum, which dates from December 2022.
In the national government they had ruled out "the Chinese port terminal" in Tierra del Fuego, an information that was also confused with another intention of China, which is to participate with capital in the construction of a base in the Logistics Pole that Argentina longs to build in Ushuaia. However, there are no signed documents, at least for now.
At the time, Melella denied that a Chinese base was being built and attributed it to an "embassies" operation.
Copy of the request made by the governor of Tierra del Fuego for the provincial Legislature to approve a controversial agreement with China for a company from that country to build a chemical plant, a port terminal and a power plant
In a dialogue with this newspaper, Tierra del Fuego Senator Pablo Blanco, of Together for Change, and who along with other opposition legislators such as Fernando Iglesias and Mariana Zuvic objected to these contents, said that the province "does not have the power to decide on issues of waterways and less in strategic places. And I hope that the Legislature when it deals with it makes that very clear."
What else the agreement says
Being the company a "Party" and the province another "Party", the document recalls that everything that is being agreed is in the framework of the 50th anniversary of the establishment of diplomatic relations between Argentina and China and that reciprocal cooperation "has entered a new stage".
In this regard, he recalls that "the governments of both countries signed a memorandum of understanding on joint construction within the framework of the "One Belt One Road" initiative, to which Argentina officially adhered in February 2022. " The governments of both countries support enterprises on both sides to deepen mutual cooperation and open up new opportunities."
He says Tierra del Fuego "is rich in natural gas resources and is one of Argentina's new industrial powerhouses." And that Shaanxi Chemical Gropu is a "wholly owned subsidiary of Cow Ltd." It is the largest chemical production enterprise in Shaanxi Province. And "it is mainly engaged in the production and scientific research of chemicals, with an annual output value of 50 billion yuan."
In addition to the fact that they will produce "energy" and "agrochemicals", which once production is started "will preferably be supplied to the domestic market, replacing imports and saving foreign exchange; At the same time, printing more added value to the extracted natural gas, generating new jobs and promoting employment."
Kirchnerist Governor Gustavo Melella is seeking re-election in Tierra del Fuego.
At the same time, the port and power plant will serve to meet local needs as well as supply the project itself." It does not establish what Shaanxi earns. It says: "The smooth construction of the project will be exemplary for investment by Chinese companies in southern Argentina."
There would first be a Working Group divided into a group. And then it establishes as a commitment of the province the following:
"Complete project approvals as soon as possible, subject to existing and future legal provisions"; Coordinate each of the parties involved "creating a favorable environment for the construction of the project and ensuring its proper implementation".
It says that the investment project "will be a beneficiary of the preferential fiscal policies of Tierra del Fuego" in accordance with current regulations, and "will receive assistance for the application before the Argentine Government of other relevant preferential policies, with coordination in charge of the Secretariat of Economic and Financial Promotion of Argentina."
Shaanxi pledges, according to the document, to "actively encourage Chinese enterprises to invest in Tierra del Fuego, add to the strength in scientific and technological matters, strive to increase the added value of local energy resources, contributing to the economic development of Tierra del Fuego."
He talks about implementing "a new corporate philosophy of environmental protection, health and safety" and "giving the local population as many jobs as possible, training local talents in the technical part, improving the local technical level, strengthening cooperation with local companies."
The amendment of this Memorandum of Understanding must be formalized "by means of documents signed by authorized representatives of both parties." It will enter into value after your subscription and will be valid for three years from the signing and will be renewed for the same period of time if no party objects thirty days in advance.