LULA DA SILVA: "BNDES WILL FINANCE WORK ON AN ARGENTINE GAS PIPELINE"

Lula confirms that BNDES will finance Argentine gas pipeline works
Terra Brasil News January 23, 2023
Lula confirms that BNDES will finance Argentine gas pipeline works
After meeting with Alberto Fernández, the president said that “bigger countries have to help countries that have less conditions”
President Luiz Inácio Lula da Silva (PT) confirmed this Monday (January 23, 2023) that the BNDES (National Bank for Economic and Social Development) will finance part of the work on the Néstor Kirchner gas pipeline. The Chief Executive classified criticism of Brazil's financial support for the Argentine enterprise as "pure ignorance".

“I am sure that Brazilian businessmen are interested in the gas pipeline, in fertilizers, in the scientific and technological knowledge that Argentina has. And, if there is interest from businessmen and governments, and we have a development bank for that, we are going to create the conditions to finance what we can to help with the Argentine gas pipeline”, he said.

In the morning, Lula visited the president of Argentina, Alberto Fernández, in Buenos Aires. As they left, they gave a joint statement to the Brazilian and Argentine media.

The 1st phase of the gas pipeline was completed and, now, the Argentines are seeking financial help to continue the work. The 2nd stretch will be around 500 km long and will connect the oil and gas fields in the Vaca Muerta region to San Jerónimo, in the province of Santa Fé. In a future phase, the gas pipeline could reach Brazil.

Lula did not detail how the financing will be done or the amount. In December, Argentina's Secretary of Energy, Flavia Royón, announced that her country had US$ 689 million in financing from the BNDES to complete the construction of the 2nd section of the gas pipeline.

At the time, BNDES, still under the command of the government of Jair Bolsonaro (PL), issued a note saying that there was no such release.

“With regard to funding, the larger countries have to help countries that have less conditions at certain historical moments. […] The journalist [who asked the question] knows how proud I was when we could finance a work in a South American country, because that is what the larger countries have to help the less fortunate countries in certain historical moments ", said.

Fernández thanked Lula for the announcement and said that work on continuing the gas pipeline needs to start immediately to "take advantage of the inertia of the construction of the 1st stage and quickly reach the point of passing on the gas that Brazil needs".

“I think both of us better understand the mission of public banks. Here in Argentina, we are only envious of the BNDES, an incredible growth tool,” he said.

For Lula, criticisms made of BNDES operations abroad, much criticized in his previous terms, are the result of “pure ignorance”.

“From time to time, in Brazil, we are criticized for pure ignorance, people who think that there cannot be funding for other countries. And I think that, not only can, but it is necessary for Brazil to help all its partners within the economic possibilities of our country. BNDES is very big,” he said.