$1 Billion for Development and Social Inclusion Projects in Argentina

(Buenos Aires, March 19, 2013).- Eight Memorandums of Understanding were signed at Casa Rosada, Argentina’s Presidential Palace, on financing for more than USD 1 billion from CAF—development bank of Latin America—for projects in several key areas for the nation’s development.

The MOUs were signed by Enrique García, CAF executive president, and Hernán Lorenzino, Minister of Economy and Public Finance.

García noted that in the past five years (2008-2012) CAF has approved USD 4.85 billion for Argentina’s development. “CAF-funded projects in Argentina are part of the investment priorities in key sectors with the highest impact on improving the quality of life of Argentinians.”

The head of CAF stressed the need for countries in the region to raise their average investment rate in order to achieve higher, sustained, high-quality growth. “Latin America needs to replace its current comparative advantage model with a competitive advantage model, evolving from natural resources and low wages to knowledge, value added, innovation and technology,” García said.

The agreements signed today earmark USD 250 million to the Regional Development Program II; USD 150 million to the Norte Grande Sanitation Infrastructure Program; USD 70 million to the National Space Development Program (CONAE) Phase I; USD 50 million to the Argentine Geostationary Telecommunications Satellite Program (ARSAT); USD 240 million to the Embalse Nuclear Power Plant Lifespan Expansion Project; USD 162.5 million to the AySA Clean Water Basic Works Program; and USD 75 million to the Program for Multiple Works in Municipalities, Phase III.

The USD 250 million for the Regional Road Development Program II aims to optimize conditions of provincial road networks in northern Argentina, thus leading to productive integration with other regions of the country.

García highlighted the regional character of this Program, which “favors Latin American integration by developing three IIRSA Axes and helps improve links with neighboring countries,” and underscored the institution’s continued support to Argentina’s development: “CAF has funded resurfacing and construction of more than 1,000 km of roads, road and railway pre-investment studies and institutional strengthening of executing agencies.”

The second agreement, for USD 150 million, is for the Norte Grande Sanitation Infrastructure Program, which aims to enhance sustainable economic development of that region by building water and sanitation infrastructure.

In addition, the National Space Development Program (CONAE) Phase I, to which CAF earmarked USD 70 million, seeks to develop Argentina’s scientific and technical capacity and boost productivity and competitiveness.

In addition, USD 50 million was allocated to Argentina’s Geostationary Telecommunications Satellite Program (ARSAT), which includes the design, construction and launch of three geostationary satellites. This will allow Argentina to place its own satellites into geostationary orbits to provide a full range of services that the industry currently offers. At the same time, Argentina’s sovereignty is reaffirmed by preserving its orbital positions, which is a priority for this CAF shareholder country.

Also, the Embalse Power Plant Lifespan Expansion Project helps diversify the energy matrix, thus improving the quality of life of approximately 3.5 million beneficiaries of the power generated by this station, and favoring the development of the science and technology system in Argentina.

In addition, Argentina’s Ministry of Federal Planning, Public Investment and Services, through Agua y Saneamientos Argentinos (AySA), advances the Clean Water Basic Works Program 2012-2015, for which CAF granted a USD 120.5-million loan. This is part of the efforts to meet the growing demand for these services in the Greater Buenos Aires, which is home to a third of the country’s population. Meanwhile, the USD 42-million loan for the first stage of this Program seeks to improve access to and provision of services in the municipalities of Esteban Echeverría, Ezeiza and Almirante Brown, which will improve the quality of life of nearly 290,000 residents in the most vulnerable sectors.

Lastly, CAF allocated USD 75 million to the Program for Multiple Works in Municipalities, Phase III, which seeks to improve the quality of life of residents of these jurisdictions, by financing minor infrastructure projects with a strong social impact.