With five votes in favour, the municipal administration has a clear path to move forward with the signing of the agreement with the Province which will allow it to access a loan to asphalt the streets of this popular neighbourhood.
The Deliberative Council approved this Wednesday by an aggravated majority the ordinance which authorizes Mayor Javier Murer to proceed with the signing of the agreement with the Province, which will allow him to take out a loan of 1,000 million pesos, to finance the paving works of the streets of the El Mallín neighborhood of Villa La Angostura.
The ordinance was sanctioned in this Wednesday’s session, with the favorable vote of the two councilors of the governing party, the councilor of Primero Angostura, María Eugenia Ceraso, the councilor of Avanzar Neuquén, Tomás Andrade, and of Together for Change, Héctor Vénica. The councilors Lilia Vidal, of the Together for Freedom bloc, and María Eugenia Mesa, of Amor por Angostura, voted against.
“The session is over. The loan was approved with five positive votes and two negative votes,” Vidal reported. “They (the municipal government) say that in 24 months they will do the work in 2 sections. As far as I know, no topographic survey was carried out; “I don’t think there is a pre-plan,” he said.
He said that “it is keeping a promise and it is not right not to be honest with others”.
“Venica spoke about the “goodness” of the loan. We all agree that Mallín needs works that allow it to develop as a neighborhood. But do things well,” Vidal said.
“I voted in favor of the cooperation agreement because in reality we are not yet approving any loans, simply, within the governance pact, what we are approving is the possibility that the Executive signs in the municipal Executive with the Provincial Council indebtedness with interest rate and priority in work,” said Vénica.
“But all this will be revealed in each of the particular agreements in which the disbursements will be established, as well as the way of repaying this debt, which implies that this will also be subject to the approval of the Deliberative Council,” Venezia said.
“What we therefore approve is a framework agreement of collaboration and financing, which is the commitment that our governor, Rolando Figueroa, has made to help the municipality of Villa La Angostura realize the desire of everything that is the floor of the El Mallín neighborhood,” said Vénica.
What the ordinance says
The approved ordinance approves the cooperation and financing commitment agreement between the Government of the province and the Municipality of Villa La Angostura for a cost of 1,000 million pesos.
The second article of the ordinance specifies that in case of signing specific agreements for the disbursement of the Reimbursable Contribution, “interest must accrue at a nominal annual variable rate which will result from the sum of the interest rate of fixed-term deposits”. more than 1,000,000 pesos for 30 and 35 days, -Badlar Private Banks- or what will replace it in the future, calculated considering the simple arithmetic mean of the daily rates published by the Central Bank of the Republic of Argentina from 10 business days before (inclusive ) at the beginning of the interest accrual period and up to 10 business days before the end (but excluding) of the interest accrual period, plus a fixed margin which cannot exceed 4% nominal per annum.”
The third article provides that these funds will be allocated “to ensure the completion of the works, taking into account that the total estimate of the works, according to the budget presented by the Planning Secretariat, is 1,251,258,112 pesos with 97 cents, which is not entirely covered from the amount financed by the Province, within the framework of the Cooperation and Financing Commitment Agreement between the Government of the Province and the Municipality of Villa “L’Angostura”.
The fourth article specifies that “within the scope of the authorization granted with this Ordinance, the Municipal Management may assign as collateral and/or assign in payment the funds that the Municipality has the right to receive in accordance with the provisions of all the resources of the bank transfers automatic resources received by the Municipality (including but not limited to those coming from article 4 of Law 2148, article 7 of Law 2615 and article 6 of Law 2495) and/or any other resources freely available.”
The rule provides that the loan of 1,000 million pesos enters the 2024 budget in the corresponding item.
The Government’s arguments
In the recitals of the project which became an ordinance, it is highlighted that on 29 August a note of the financing agreement for the paving works in the Mallín district was presented to the Council.
It should be noted that the cooperation and financing commitment agreement was signed, within the framework of the “Governance Pact”, in which the commitment is made to promote the infrastructure program for local authorities through which contributions and/or or loans to municipalities, priority works can be carried out independently or through the Province.
He underlines that “the implementation of the paving works is considered strategic and essential for the development of Villa La Angostura and to improve the quality of life of the residents of the different neighborhoods”.
This type of works, he specifies, “does not only mean providing asphalt and curbs to the intervention area, but will also allow the organization of roads and transport and will improve the urban conditions of the area, enhancing the real estate of the borders”. .” , the surrounding areas and those of the entire community.”
It reports that the disbursement “is expected in a maximum of 2 installments of 500 million pesos” and clarifies that “the difference between the approximate cost of the work and the financing granted by the province will be borne by the Municipality of Villa la Angostura”.
It is ensured that “the repayment of said refundable contribution will be made by the municipal executive within a maximum period of 24 monthly and consecutive installments, as reported by the Ministry of Finance and Modernization”. In the project promoted by the municipal administration it is clarified that “the Municipality is able to guarantee the repayment of this contribution, as reported by the Ministry of Finance and Modernization”.
Related
Interview Transcript:
Time.news Editor (T): Welcome, Dr. Ana Gómez, an urban development expert, to our Time.news segment today! We’re discussing a significant recent development in Villa La Angostura concerning a loan to pave the streets of the El Mallín neighborhood. What’s your initial take on this ordinance passed by the Deliberative Council?
Dr. Ana Gómez (A): Thank you for having me! I think this decision is a crucial step for the community of El Mallín. The approval of a 1,000 million pesos loan indicates a commitment to improving local infrastructure, which can have lasting positive effects on both the environment and residents’ quality of life.
T: The ordinance was approved with five votes in favor and two against. Some councilors expressed concerns about the lack of a topographic survey and planning. How important are these aspects in such projects?
A: Those concerns are valid. In urban planning, a thorough topographic survey is essential as it informs the design and feasibility of any infrastructure work. Without it, there’s a risk of either overspending or implementing a project that doesn’t meet the needs of the residents. Transparency and rigorous planning are vital for the project’s success.
T: Given the estimated costs exceeding the amount of the loan, what implications does this have for the municipality and its budget?
A: It raises some important questions about financial management. With the total project cost estimated at over 1.25 billion pesos, the municipality will need to find additional funding to complete the project. This could mean taking on more debt or reallocating funds from other areas, both of which need careful strategic planning to avoid future financial strain.
T: One of the councilors, Héctor Vénica, mentioned that the approval is merely a framework agreement for cooperation rather than a direct approval of the loan itself. How does this affect the governance of such projects?
A: That’s a crucial distinction. By framing it as a cooperation agreement, it allows for flexibility in negotiations with provincial authorities. It also means that the specifics of the loan—like repayment terms and disbursement schedules—will still undergo scrutiny and require further approval from the council. This layered approval structure can ensure checks and balances, but it also slows down the process, which may frustrate those awaiting improvements in the neighborhood.
T: There’s also a commitment from the provincial government under the “Governance Pact” to support the municipality’s infrastructure goals. How significant is such collaboration between local and provincial governments?
A: It’s very significant! Collaboration can bring substantial benefits, as it often leads to pooling of resources and expertise. The provincial government’s commitment can help ensure not only the financial backing necessary for projects but also technical support. However, it’s important for local officials to remain engaged to ensure that the specific needs of their communities are prioritized in these larger agreements.
T: Lastly, for residents of El Mallín, what real benefits can they expect from this project in the long run?
A: Properly executed, asphalted roads can drastically improve access and mobility, leading to economic growth and enhanced property values in the neighborhood. Additionally, well-planned infrastructure contributes to safety, accessibility, and community cohesiveness. If the project is executed transparently with community involvement throughout, it will foster a sense of ownership and pride among residents, further enhancing the neighborhood’s social fabric.
T: Thank you, Dr. Gómez, for your valuable insights into this important local development. We’ll be keeping an eye on how the project unfolds!
A: Thank you for having me! I look forward to seeing positive changes in El Mallín.