A Chinese state-owned company has signed a contract worth nearly $15 billion to finance and build two nuclear power plants in Argentina. According to the deal, China National Nuclear Corp (CNNC) will work with Argentina's state-run company, Nucleoelectrica, to build the South American nation's fourth and fifth nuclear reactors, AFP reported. According to a statement posted on the website of CNNC on Monday, the agreement was reached over the weekend during the G20 summit in Turkey. Based on estimates by the Argentine government, the project will require $15 billion in financing. The figure was announced by Argentina’s Economy Minister Axel Kicillof in a statement issued by the country's Ministry of Planning. The statement added that the Chinese company will provide a portion of the financing for the projects through investment and bank loans at preferential rates. One reactor will use Canadian heavy-water technology, while the other is designed to use China's locally developed Hualong One reactor, CNNC said. During recent years, China’s state-owned energy companies have been making efforts to promote the country’s homegrown nuclear technology and strike energy deals with all countries across the world. Last month, China vowed to take a one-third stake in Britain's first nuclear power plant in decades, announcing that it will provide $9.1 billion in financing for the project, which was hailed by Prime Minister David Cameron as a "historic deal."
China is to build two nuclear plants in Argentina in a $15bn deal, which will see Beijing providing most of the financing for the plants at a time when Ministry of Planning is locked out of global credit markets. Whilst China has been cutting back its exposure in Latin America, such as Venezuela, it did provide an $11bn currency swap arrangement last year to help Argentina's economy. Increasingly, China has stepped in to provide financing to countries that are locked out of international credit markets or ignored by investors due to sanctions or corruption, and it has made huge investments in railways, ports and energy projects in Argentina. However, some in Argentina are now becoming increasingly concerned of their nation's reliance on China and where it will lead in the future. They are also uneasy that these deals have just been signed before a presidential electoral run-off.