The project’s initial budget was $795 million, but the final price will be more than twice as much.
The projected cost of the Ushuaia pier expansion will exceed the initial 2021 budget by more than twofold. It is a result of both inflation and a reformulation of the work’s plans.
The project will actually cost more than expected, by $1 billion, instead of the $795 million estimated by the government of Tierra del Fuego under Gustavo Melella.
This week, it was revealed that the project’s total cost for implementation will be roughly $1.7 billion.
The pier was planned to be 80 meters long by 28 meters wide in addition to a 20-meter mooring dolphin’s construction. However, a rewrite increased the plan to 104 meters and the budget as a result.
However, the first calculations performed in the Fuegian province were significantly impacted by the inflation updates.
The province and the Temporary Business Union (UTE), composed of Panedille Argentina, Concret-Nor, and Nakon Sur, signed a contract on June 4, 20221, for the construction of a pier with a 15-month implementation period.
It was estimated to cost $795 million. Nevertheless, according to El Diario del Fin del Mundo, the corporation announced an upgrade of valuation at $157.3 million in mid-2022. This is because there was a 7-month gap between the opening of the offer envelopes on January 12, 2021, the official subscription of the work commitment on June 4, 2021, and the start of the scheduled work on June 13, 2021. The company asserted that input costs for construction have increased significantly.
The project’s cost increased to $952 million just from this. But by the end of 2021, the Alberto Fernández administration, which had pledged an additional $200 million for its completion, assisted the Melella administration in its decision to enlarge by 24 meters.
The additional $564 million was granted in September 2022, increasing the total cost to $1.516 billion. Additional $176 million was added to these as a result of the period’s price increase. The budget eventually totaled $1692 million.
The projected completion date for the project is February or March of this year.
According to the specialized media Global Ports, “the original work was awarded to the Transitory Union of Companies (UTE) Panedile Argentina, Concret-Nor, and Nakon Sur with an official budget of $795 million and the second part added another $560 million, although in both cases the amounts were modified. due to different price redeterminations.
“It can be said that the overall scope of the work is developing in accordance with the bid specifications. According to our estimates, the expansion of the additional 24 meters will be finished by the end of March, stated Roberto Murcia, president of the Provincial Directorate of Ports, to Télam.
20% more moorings will be possible at the dock because to the development. According to projections, 540 large vessels are expected to arrive in Ushuaia in 2023.