MercoPress. South Atlantic News Agency

Siemens pledges to invest US$ 5.6bn in energy and infrastructure in Argentina

“I'm a happy man because we can help rebuild the country,” Kaeser said, adding that if others don't act fast they may lose out on big opportunities in Argentina

German industrial conglomerate Siemens AG signed a letter of intent on Wednesday to participate in up to US$5.6 billion of energy, transportation and infrastructure projects in Argentina, Chief Executive Joe Kaeser said.

 Kaeser, who made the announcement at a business forum in Buenos Aires, said Argentine President Mauricio Macri is rapidly overhauling the country's economy and that now is the time to invest there.

“I'm a happy man today because we can help rebuild the country,” Kaeser said, adding that if other investors don't act fast they may lose out on big opportunities in Argentina. “I would urge everyone to think about it twice before waiting because tomorrow it may be too late.”

The commitment from Siemens, which could be the biggest yet from any company since Mr. Macri took office in December, is a vote of confidence in the Macri administration and Argentina's potential as a producer of renewable energy, Kaeser said.

Siemens said the company would offer about US$3 billion in financing for the projects, which he said would create 3,000 direct and 7,000 indirect jobs in Argentina. The projects include plans to generate 5 gigawatts in energy, he said.

“This country has fabulous opportunities in renewable, in both solar and wind” Kaeser said.

Siemens said in a statement that it plans to double its business in Argentina by 2020. Beyond the statement and Kaeser's comments, though, it was unclear exactly what role Siemens would play in the projects or how the financing would be used.