A $10 billion dollar spending spree will improve transit in Cordoba and Buenos Aires, but also between Argentina and neighboring Bolivia. "Funds come from the China Development Bank and will require a 15% match from the Argentinian government."
"The effort suggests not only that China is willing and able to contribute its national funds to foreign projects, but also that it intends to structure its investments as an alternative to the World Bank," writes Yonah Freemark. "China undoubtedly wants to expand its access to Argentina's productive farmland, and rail transport is significantly cheaper than road movements."
Negotiations between Argentinian president Cristina Fernández de Kirchner and premier Hu Jintao were concluded last week and suggest that "Argentina has agreed to giving China preferential trade treatment above and beyond the improved access to the country's agricultural resources."
Read the full story: China Agrees to Major Investments in Argentina's Metro and Rail Lines
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