www.pwc.com/cpi-outlook2025

Capital project and infrastructure spending Outlook to 2025

Research by

Contents

1. Argentina

2. Contacts

Given the regulatory and legal uncertainties that make for a difficult investment environment, as well as fiscal constraints that limit government resources, Argentina’s infrastructure investment is expected to grow by a modest 4.8% a year on average over the next decade or so.

In particular, we expect the extractive sectors in Argentina to grow more slowly given the recent nationalization of YPF-Repsol. Argentina’s utilities sector is also forecasted to see a modest growth in spending (around 2–3% a year) over the coming decade.

Outlook to 2025Argentina

Figure 1: Infrastructure spending in a national context

Source: Oxford Economics

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2024202220202018201620142012201020082006

Infrastructure spending as a % of total fixed investment, LHS)Infrastructure spending as a % of GDP, RHS)

Forecast

Figure 2: Infrastructure spending by broad sector

$bn per year, current prices

Source: Oxford Economics

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202520152005

Extraction

Utilities includingPowergen and telecoms

Manufacturing

Transport

Social

In light of the abundance of natural resources, we expect chemicals, metals and fuels investment to grow more broadly in line with neighboring economies. Growth rates of 6% a year on average in the chemicals sector, as well as 6% a year in metals, will likely be the fastest of any infrastructure development in Argentina. Telecommunications investment is also expected to continue to grow—having already increased by 87% from 2006 to 2011—due to more and more demand for broadband and mobile connectivity. Argentina’s demographics are the least favorable in the Latin America region, with

the old-age population set to almost match the 14-and-under cohort by 2025. As such, investment in education is expected to increase only modestly by 3.1% over the coming decade, while healthcare spending will likely grow faster at 4% a year.

Overall, we expect annual infrastructure spending to reach just over $30bn a year by 2025 as Argentina experiences a steadily decreasing share of both regional and global infrastructure investment.

Figure 3: Investment in extraction infrastructure

$bn per year, current prices

Source: Oxford Economics

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2024202220202018201620142012201020082006

Oil and Gas

Other Extraction

Forecast

Figure 4: Manufacturing infrastructure investment

$bn per year, current prices

Source: Oxford Economics

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2024202220202018201620142012201020082006

Fuels

Basic Metals

Chemicals

Forecast

This report from PwC, with research by Oxford Economics, is part of an overall package of materials that provides the first consistent data analyzing projected capital project and infrastructure spending across the globe. For investors, public officials, and companies planning capital investments, it highlights the sectors and countries expected to benefit from this investment resurgence. And it provides insight on the factors driving the expected investment growth.

© 2014 PwC. All rights reserved. PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. Please see http://www.pwc.com/structure for further details. This content is for general information purposes only, and should not be used as a substitute for consultation with professional advisors. AT-14-0202

Data Sources: OECD, World Health Organisation, UNIDO, UNESCO, World Bank, Oxford Economics.

Figure 5: Transportation infrastructure investment

$bn per year, current prices

Source: Oxford Economics

0.00.51.01.52.02.53.03.54.04.55.0

2024202220202018201620142012201020082006

Airports

Ports

Forecast

Rail

Roads

Figure 6: Other utilities infrastructure investment

$bn per year, current prices

Source: Oxford Economics

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2024202220202018201620142012201020082006

Gas distribution

Water supply and sanitation

Forecast

Electricity T&D

Figure 7: Social infrastructure investment

$bn per year, current prices

Source: Oxford Economics

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Health

Education

Forecast

Figure 9: Infrastructure in global context

Source: Oxford Economics

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2024202220202018201620142012201020082006

Infrastructure spending as a % of South America, LHSInfrastructure spending as a % of world, RHS

Forecast

Figure 8: Demographic change

Proportion of population aged:

Source: Oxford Economics

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Population aged < 14Population aged 65+

Forecast

Figure 10: Argentina versus peers

Total infrastructure spending per year, $bn

Source: Oxford Economics

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ArgentinaChile Colombia

Peru

Forecast

Global and regional contacts

Richard Abadie Global leader Capital projects & infrastructure Tel: +44(0) 20 7213 3225richard.abadie@uk.pwc.com

Neil Broadhead EMEA Capital projects & infrastructure Tel: +44 (0) 20 7804 4423neil.broadhead@uk.pwc.com

Mark Rathbone Asia-Pacific Capital projects & infrastructure Tel: +65 6236 4190mark.rathbone@sg.pwc.com

Peter Raymond North and South America Capital projects & infrastructure Tel: +1 703 918 1580peter.d.raymond@us.pwc.com

Country contacts

ArgentinaMaximiliano GalliTel: +54 11 4850 6813maximiliano.galli@ar.pwc.com

AustraliaMatt ThomsonTel: +61 (7) 3257 5166 matt.thomson@au.pwc.com

Mario D’EliaTel: +61 (3) 8603 6799mario.delia@au.pwc.com

AzerbaijanJan Brazda Tel: +42 02 5115 1296jan.brazda@cz.pwc.com

Bahrain Stephen AndersonTel: +974 4419 2850stephen.x.anderson@qa.pwc.com

Brazil Carlos BiedermannTel: +55 51 3378 1708carlos.biedermann@br.pwc.com

CanadaMichel GrillotTel: +1 (403) 509 7565michel.grillot@ca.pwc.com

Johanne Mullen Tel: +1 (514) 205 5080johanne.mullen@ca.pwc.com

ChileGerman MillanTel: +56 2 2940 0754german.millan@cl.pwc.com

China Gabriel WongTel: +86 (21) 2323 2609gabriel.wong@cn.pwc.com

Colombia Peter Raymond Tel: +1 703 918 1580peter.d.raymond@us.pwc.com

Czech RepublicJan Brazda Tel: +42 02 5115 1296jan.brazda@cz.pwc.com

EthiopiaJonathan CawoodTel: +27 11 797 5236jonathan.w.cawood@za.pwc.com

FranceBenjamin RibaultTel: +33 (0) 1 56 57 60 02benjamin.ribault@fr.pwc.com

Christian Rasomanana Tel: +33 56 57 67 03christian.rasoamanana@ fr.pwc.com

GermanyHansjörg Arnold Tel: +49 69 9585 5611hansjoerg.arnold@dw.pwc.com

Capital project and infrastructure spending: Outlook to 2025 contacts

GhanaJonathan CawoodTel: +27 11 797 5236jonathan.w.cawood@za.pwc.com

Hungary Jan Brazda Tel: +42 02 5115 1296jan.brazda@cz.pwc.com

IndiaManish Agarwal Tel: +91 22 6669 1776manish.b.agarwal@in.pwc.com

IndonesiaJulian SmithTel: +62 21 5289 0966smith.julian@id.pwc.com

Rizal SatarTel: +62 21 5289 0350rizal.satar@id.pwc.com

ItalyGuido Sirolli Tel: 390 6 5708 32125guido.g.sirolli@it.pwc.com

JapanYumiko NodaTel: +81 80 4116 7642yumiko.y.noda@jp.pwc.com

Kazakhstan Jan Brazda Tel: +42 02 5115 1296jan.brazda@cz.pwc.com Kenya Jonathan Cawood Tel: +27 11 797 5236jonathan.w.cawood@za.pwc.com

Kuwait Stephen AndersonTel: +974 4419 2850stephen.x.anderson@qa.pwc.com

Malaysia Siow Ming TanTel: +66 (0) 2 286 9999siow.ming.tan@my.pwc.com

Mexico Francisco IbanezTel: +52 55 5263 6085francisco.ibanez@mx.pwc.com

MozambiqueJonathan CawoodTel: +27 11 797 5236jonathan.w.cawood@za.pwc.com

Netherlands Martin Blokland Tel: +31 (0) 88 792 75 86martin.blokland@nl.pwc.com

New Zealand Mark Rathbone Tel: +65 6236 4190mark.rathbone@sg.pwc.com

Nigeria Farouk Gumel Tel: +234 (1) 271 1700farouk.x.gumel@ng.pwc.com

Ian AruoforTel: +234 (1) 271 1700ian.aruofor@ng.pwc.com

OmanStephen AndersonTel: +974 4419 2850stephen.x.anderson@qa.pwc.com

Peru Peter Raymond Tel: +1 703 918 1580peter.d.raymond@us.pwc.com

PhilippinesRose JavierTel: +63 (2) 845 2728rose.javier@ph.pwc.com

Poland Jan Brazda Tel: +42 02 5115 1296jan.brazda@cz.pwc.com

Qatar Stephen AndersonTel: +974 4419 2850stephen.x.anderson@qa.pwc.com

Romania Jan Brazda Tel: +42 02 5115 1296jan.brazda@cz.pwc.com Russia Dmitry Kovalev Tel: +7 495 223 5028dmitry.kovalev@ru.pwc.com

Saudi ArabiaJonathan BarnesTel: +966 2 610 4400 jonathan.barnes@sa.pwc.com

Singapore Mark Rathbone Tel: +65 6236 4190mark.rathbone@sg.pwc.com

South Africa Jonathan CawoodTel: +27 11 797 5236jonathan.w.cawood@za.pwc.com

South Korea Steven JeongTel: +82 (0) 2 3781 2551steven.jeong@kr.pwc.com

SpainPatricio de Antonio Lorenzo Tel: +34 915 684 360patricio.de_antonio@es.pwc.com

Sweden Lars Tvede-JensenTel: +46 (0) 10 213 3403lars.tvede-jensen@se.pwc.com

Tanzania Jonathan CawoodTel: +27 11 797 5236jonathan.w.cawood@za.pwc.com

Thailand Charles OstickTel: +66 (0)2 344 1167 charles.ostick@th.pwc.com

Turkey Husnu Dincsoy Tel: +90 212 376 53 08husnu.dincsoy@tr.pwc.com

UAEStephen AndersonTel: +974 4419 2850stephen.x.anderson@qa.pwc.com

UK Neil BroadheadTel: +44 (0) 20 7804 4423neil.broadhead@uk.pwc.com

Ukraine Jan Brazda Tel: +42 02 5115 1296jan.brazda@cz.pwc.com US Peter Raymond Tel: +1 703 918 1580peter.d.raymond@us.pwc.com

Vietnam Johnathan OoiTel: +84 8 3824 0126 johnathan.sl.ooi@vn.pwc.com

www.pwc.com/cpi-outlook2025

To have a deeper conversation about this subject, please contact:

Richard Abadie Global leader Capital projects & infrastructurePricewaterhouseCoopers LLP7 More London Riverside, London, SE1 2RT richard.abadie@uk.pwc.com Tel: +44 (0) 20 7213 3225 Neil Broadhead EMEA Capital projects & infrastructurePricewaterhouseCoopers LLPEmbankment Place, One Embankment Place, London WC2N 6RHneil.broadhead@uk.pwc.com Tel: +44 (0) 20 7804 4423

© 2015 PwC. All rights reserved. PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. Please see www.pwc.com/structure for further details. This content is for general information purposes only, and should not be used as a substitute for consultation with professional advisors. MW-15-2054 LL

Methodology note: In developing this analysis, Oxford Economics used data sets to provide consistent, reliable, and repeatable measures of projected capital project and infrastructure spending globally as well as by country. Historical spending data is drawn from government and multinational organisation statistical sources. Projections are based on proprietary economic models developed by Oxford Economics at the country and sector levels. The analysis, completed over the first half of 2015, incorporates all available information at that time. For more information on the methodological basis for these projections, please see the global report. The results for this report have been estimated using the following underlying data sources: World Health Organisation, UNESCO, World Bank, Annual Capital Expenditures Survey, Association of American Ports, Edison Electrical Institute, Office of Highway Policy Information, Federal Highways Authority, Department of Transportation, National Clearinghouse of Educational Facilities, Department of Education, Oxford Economics.

Mark Rathbone Asia-Pacific Capital projects & infrastructurePricewaterhouseCoopers Services LLP 8 Cross Street #17-00, PWC Building, Singapore 048424    mark.rathbone@sg.pwc.com Tel: +65 6236 4190 Peter Raymond North and South America Capital projects & infrastructurePricewaterhouseCoopers LLP1800 Tysons Blvd., McLean, VA 22102peter.d.raymond@us.pwc.com Tel: +1 703 918 1580